Auckland, New Zealand, 3 May 2010 - Genesis Research and Development Corporation Ltd advises that it is suspending operations in New Zealand due to lack of funding, but is negotiating several transactions that are intended to maintain value for shareholders.
Solirna Biosciences Ltd
Solirna's scientific and management team has made substantial progress with development of its single stranded gene silencing technology. Further funding of Solirna is being discussed, with future development of the technology likely to be undertaken overseas.
Pure Power Global
Negotiations with Pure Power Global for the settlement of the outstanding debt relating to the sale of BioJoule Ltd have been continuing for a long period. In recognition of the significant change in asset values and the difficulty in arranging funding since the global financial crisis, Genesis has agreed to accept a significantly reduced amount if payment is made promptly. An initial deposit is being paid and complete settlement is intended to occur in May.
Genesis is currently discussing a proposed transaction to acquire a company with several therapeutic development projects, including one that is close to entering clinical development. The vendors have indicated that funds are available to allow Genesis to make a placement of shares which would raise approximately $450,000, with further more significant funding likely to follow.
Existing Genesis assets, including its royalty rights, and equity interests in Solirna Biosciences Ltd and Real Time Genomics, may be transferred to a separate entity. Existing Genesis shareholders would then receive shares in that new entity and would continue to hold their existing shares in Genesis. These transactions have not yet been fully developed or agreed with the other parties involved, and will be subject to approval of shareholders.
Genesis Chief Executive, Stephen Hall, said, "It is now apparent that sufficient funding is not available to allow ongoing development of the Solirna technology in New Zealand. The Foundation for Research Science and Technology has declined to provide any substantive funding and at this stage the Japanese investor in Solirna is still determining whether it will provide further funding.
"Further information will be provided to shareholders as the plans discussed above are developed further."
Stephen G. Hall - Chief Executive
Genesis Research & Development Corporation Limited http://www.genesis.co.nz
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