TORONTO, March 04, 2016 (GLOBE NEWSWIRE) -- GeneNews Limited (“GeneNews” or the “Company”) (TSX:GEN) today announced that it has entered into a Unit Purchase Agreement (the “Purchasing Agreement”) with Cobalt Healthcare Consultants, Inc. (“Cobalt”), pursuant to which GeneNews’ wholly-owned subsidiary, GeneNews (USA), Inc., will acquire Cobalt’s fifty percent (50%) ownership interest in the Innovative Diagnostic Laboratory, LLP (“IDL”) joint-venture. Once concluded, GeneNews will have full ownership of IDL.
Under terms of the Purchasing Agreement, GeneNews will assume any and all of Cobalt’s liability relating to Cobalt’s $US 1 million Secured Demand Promissory Note (the “Note”) payable to former IDL partner, HDL USA Holdings, LLC. No other consideration will be paid. Additionally, GeneNews has asked for and received a one year extension on the term of the Note, making it due in May 2017. The Purchasing Agreement is subject to GeneNews completing a strategic financing during March 2016.
“In recent months, we have taken a number of important steps to get the Company on a more solid footing to support an orderly restructuring of its operations,” said GeneNews’ Executive Chairman, James Howard-Tripp. “With a number of difficult decisions behind us, and this Purchasing Agreement in place, we are now much better prepared to pursue the working capital we need to restore IDL’s corporate viability and re-establish its growth trajectory.”
About GeneNews
GeneNews is focused on developing and commercializing proprietary molecular diagnostic tests for the early detection of diseases and personalized health management, with a primary focus on cancer-related indications. The Company's lead product, ColonSentry®, is the world's first blood test to assess an individual's current risk for colorectal cancer. GeneNews' common shares trade on the Toronto Stock Exchange under the symbol 'GEN'. More information on GeneNews can be found at www.GeneNews.com.
About IDL
Richmond, Virgina-based IDL is a national clinical reference lab specializing in personalized blood-based testing to help find, understand, and address cancer risk in patient populations. IDL’s mission is to provide a comprehensive menu of traditional and advanced clinical evidence-based blood tests that aid in early cancer detection. Currently IDL offers risk assessment blood tests for the three most prevalent cancer types including lung, colon and prostate. IDL is actively in-licensing and commercializing an array of DNA, RNA, protein and autoantibody blood-based cancer diagnostic tests to address early detection of all major types of cancer.
Forward-Looking Statements
This press release contains forward-looking statements identified by words such as "expects", "will" and similar expressions, which reflect the Company's current expectations regarding future events, including the restructuring of its business. These forward-looking statements involve risks and uncertainties and material assumptions - including those related to general business and economic conditions as well as our ability to complete an orderly restructuring of the Company's operations which may include a strategic financing, sale, merger, or other business combination - that could cause the Company's actual events to differ materially from those projected herein. Investors should consult the Company's ongoing quarterly filings and annual reports for additional information on risks and uncertainties relating to these forward-looking statements. The reader is cautioned not to rely on these forward-looking statements. The Company disclaims any obligation to update these forward-looking statements, except as required by law.
Company Contact:
James R. Howard-Tripp
Executive Chairman
Office: (905) 209-2030
jhoward-tripp@genenews.com
Investor & Media Contact:
Stephen Kilmer
Kilmer Lucas Inc.
Office: (646) 274-3580
stephen@kilmerlucas.com
