Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Genesis Research directors quit, leaving it to shareholders

UBNZ, Delight Grace left to contemplate future of Genesis Research as directors quit

Nov. 13 (BusinessDesk) - The chairman and three other directors of Genesis Research and Development have resigned after concluding they can’t continue to run the company because of a lack of funds and lack of communication from major shareholders UBNZ Funds Management and Delight Grace.

“The board believes that it has become necessary for the company to be placed in voluntary liquidation by the shareholders and for any remaining assets to be realised and/or distributed pro rata to shareholders,” chairman Joachim von Roy said in a statement.

The board can’t do that without a special resolution of shareholders or court order but lacks the funds for either option. UBNZ, which also holds convertible notes, could appoint a receiver as a secured creditor, but it hasn’t given any indication of its plans, von Roy said.

Von Roy and independent directors Andrew Gearing, Daniel Mahnert-Lueg and Steven Gillis resigned from the board, leaving Catherine Yan as sole director. Yan joined the board in July after a placement of 9.1 million shares to Delight Grace.

Yan “will have to consider the future direction of the business, including appointment of further directors, maintaining solvency and compliance with listing requirements on NZX and ASX or seeking shareholder approval for delisting,” von Roy said.

UBNZ took a 16 percent stake in Genesis in mid-2010 via a private placement but communications broke down a year later when former UBNZ principal May Wang was charged by the Hong Kong Independent Commission Against Corruption with giving bribes of HK$73 million. Fellow UBNZ principal Jack Chen was also arrested.

The company suspended operations in May 2010 and laid off its entire staff. In July this year the placement of 9.1 million shares to Delight Grace was said to give it enough funds to remain listed while it considered further investments.

The shares last traded at 1.8 cents, valuing the company at $980,000, and have declined 47 percent this year. They were halted yesterday while the directors considered their options.

In July, Genesis called off a proposed merger with Australia-based Mariposa Health, an unlisted public pharmaceutical development company. In today’s statement, it said the merger failed because UBNZ “failed to waive its rights under its security agreement to enable the merger proposal to proceed.”

“Genesis has insufficient funds to continue, even as a non-operating investment entity," it said.

It had sought to continue in existence in the hope of realising funds in its investment with Real Time Genomics.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Season Ends: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news