Published 31 August 2010
Struggling NZX-listed agricultural research company Genesis Research & Development Corp Ltd – in which the company fronted by controversial Chinese entrepreneur May Wang, UBNZ Funds Management Ltd, has taken a 19.5% stake – reported a reduced half-year loss on Monday.
Genesis chief executive Stephen Hall said the company had a cash balance of $204,000 at 30 June (at 31 December it was $324,000) and made a $511,000 net half-year loss (the loss for the June 2009 half was $1.2 million). He said cost reductions had reduced the loss substantially. Genesis undertook development of the new ssRNAi gene silencing technology under contract to its subsidiary company, Solirna Biosciences Ltd. However, as Solirna wasn’t able to raise enough funding to continue the project, the company’s operations were suspended and all staff were made redundant at the end of May. “This has been a very challenging period for the company as it ceased active operations. However, a number of parties are interested in investing in Solirna so we are hopeful that its ssRNAi research programme, which achieved progressively improving results, can be continued. Genesis is now pursuing opportunities for the development of new products in the dairy industry. “Real Time Genomics Inc continues to make excellent progress with development of its advanced software for genomic analysis and recently announced a significant commercial licence to The Genome Centre at Washington University in St Louis. “Since balance date, Genesis terminated the lease of its premises by agreeing to pay $150,000, which is equivalent to about 5 months’ rent. This settlement was funded by a loan of $250,000 from UBNZ Funds Management, which is convertible into 4,166,666 ordinary shares if conversion is approved by shareholders at a future meeting, or otherwise is repayable if conversion is not approved. “UBNZ has advised that it is interested in making a further substantial investment in Genesis, which will be subject to shareholder approval at a meeting to be held shortly.”
UBNZ Funds Management bought into Genesis on 29 June, one day after Ms Wang’s creditors approved a personal debt-compromise scheme by her at 6c:$1, and at the same time as the High Court adjourned a bankruptcy application. The compromise proposal is due back in court for hearing of the application to approve it on Tuesday-Wednesday 2-3 November.
UBNZ is in line to buy a portfolio of 16 farms held by the Crafar family, but being sold by the receivers’ of the Crafars’ companies.
30 June 2010: May Wang turns into saviour for Genesis Research
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Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.