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Genesis Research, still awaiting UBNZ capital, posts 1H loss

Published: Tue 30 Aug 2011 09:46 AM
Genesis Research, still awaiting UBNZ capital, posts 1H loss
By Paul McBeth
Aug. 30 (BusinessDesk) – Genesis Research & Development Corp., which halted its New Zealand operations last year when it ran out of cash, posted a first-half loss and said it is still awaiting funds from UBNZ Funds Management Ltd.
Chief executive Stephen Hall said UBNZ “has expressed interest in subscribing for significant new capital in Genesis, but documentation has not yet been finalised” and the proposed transaction will need shareholder approval at a special meeting.
That comes as the biotechnology company reported a net loss of $148,000, or 0.33 cents a share, in the six months ended June 30, compared to a loss of $511,000, or 1.37 cents a share, a year earlier. With just $1,000 of total income, the company burned through $160,000 in the period, and had $178,000 in cash or equivalents as at June 30.
“All significant commitments have been cleared, so the company is now ready to pursue opportunities for the development of new products in the dairy industry,” Hall said.
Genesis started burning through cash in May last year after its joint venture, Solirna Biosciences Ltd., stalled when its Japanese partner decided not to put in more funds. Solirna’s gene silencing research aimed to deliver disease-curing payloads into human cells. It was turned down for additional funding from the Foundation for Research, Science and Technology.
Hall said the company has kept the Solirna patent applications, but needs more funding “before scientific progress can be achieved.”
In September last year, UBNZ loaned Genesis $250,000 through a convertible note, adding to its $466,000 injection for a 16.3% stake in the firm.
Last year, UBNZ unsuccessfully attempted to buy and on-sell the Crafar family farms to Hong Kong-listed Natural Dairy (NZ) Holdings. It was fronted by controversial businesswoman May Wang, who has since been bankrupted over a prior venture.
Genesis shares rarely trade, and last traded on Aug. 26, falling to 0.4 cents from 0.6 cents. That values the company at just $1.8 million.
(BusinessDesk)
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