Auckland, New Zealand 30 October 2007 - Genesis Research and Development Corporation Ltd (NZSX/ASX: GEN) today announced the signing of agreements for all the shareholders of BioJoule Ltd to sell their holdings to Pure Power Global (PPG), an integrated renewable energy company based in Singapore, Hong Kong and Sao Paulo for NZ$6 million cash and 1.2 million shares in Pure Power Global.
“The cash proceeds to Genesis of $3.9 million (50% payable immediately and the balance in August 2008) will fund the ongoing development of the Genesis RNAi oncology and Zyrogen antibody programmes which are moving toward clinical development”, said Stephen Hall, Chief Executive of Genesis Research. “This move is consistent with the Genesis strategy that has been discussed with shareholders to focus on development of therapeutic products. Genesis will also benefit from holding nearly 1 million shares in PPG which are expected to grow in value as PPG acquires further businesses and develops its technologies.”
“Pure Power Global has shown a real commitment to the development of renewable energy and biofuels. We believe that it can provide the funding and access to international markets that will enable BioJoule to become a commercial success. It has been difficult to raise capital or grant funding in New Zealand so international involvement is required. However it is possible that a biorefinery to produce ethanol, unsulphonated lignin and xylose from shrubby willow could still be built in New Zealand when the technology has been further developed.”
“We are excited by the technology that BioJoule has developed and intend to escalate the international development and deployment of BioJoule,” commented David Milroy, Chairman and Chief Executive of PPG. “We believe that there is a real need to develop technology for sustainable production of biomaterials and to produce biofuels from non-food crops, both in New Zealand and internationally.”
The Agreements are conditional on approval by Genesis shareholders (as required by Stock Exchange Rules) and satisfaction of standard contractual conditions which are expected to be settled within the next two weeks.
BioJoule is developing and commercializing technology to grow and refine biomass into high value products. BioJoule is focussed on environmental sustainability and products that reduce dependence on fossil fuels and chemicals. Bio-products include cellulosic ethanol for transportation fuel, unsulphonated lignin for the chemical manufacturing and biomaterials industries and xylose for the food industry. BioJoule technology will be applied to shrubby willow and other biomass including oil palm waste and sugarcane bagasse.
About Pure Power Global (PPG)
PPG is Asia and the America’s first truly integrated renewable energy company, with a goal of supplying these dynamic and fast-growing regions with pure, renewable energy generated from biodiesel production, anaerobic digestion, wind farms, hydro generation, marine current technology, and biomass solid fuel production. In addition, PPG will manage and finance renewable energy initiatives, including the trading of Carbon Emission Reductions. PPG plans to have an IPO within the next 2 years, subject to market conditions. PPG recently purchased a 19.9% stake in Aquaflow Bionomic Corporation Ltd, a Nelson based business developing technology to produce biofuel from algae. For further information see www.purepowerasia.com
About Genesis Research
Genesis Research is a New Zealand-based biotechnology company, listed on the New Zealand and Australian stock exchanges. Since Genesis was established in 1994, it has built a broad therapeutic development platform targeting immune disorders and cancer and is developing RNAi therapeutics. Genesis has undertaken ten clinical trials in New Zealand and other countries, of which seven were at phase II, in collaboration with a number of international companies including Immunex (now Amgen) and Corixa (now GSK).
RNAi therapeutics are being developed targeting cell metabolism and nutrient transport, for treatment of solid tumours and for enhancement of the effect of existing chemotherapeutic drugs. The Zyrogen programme is developing an antibody as a potential therapeutic for autoimmune and bone diseases.
Genesis now holds 24 issued patents. The US Patent and Trademark Office has allowed claims for 10 of these, and the remainder are from a number of other countries, including 5 from New Zealand. There are 10 applications pending in the U.S. and more than 25 pending in other countries.
For further information see www.genesis.co.nz
Stephen Hall, Chief Executive - Genesis Research and Development Corporation Ltd +64 21 715 725
David Milroy, Chairman and Chief Executive – Pure Power Global +65 9060 2828
Jim Watson, Managing Director – BioJoule Ltd, +64 21 554 222