TORONTO, June 15, 2016 (GLOBE NEWSWIRE) -- GeneNews Limited (TSX:GEN) (“GeneNews” or the “Company”) today reported operational and financial results for the three-month period ended March 31, 2016. The full filing can be viewed on www.sedar.com.
On May 27, 2016, GeneNews announced that it had reported operational and financial results for the twelve-month period ended December 31, 2015, as well as its Annual Information Form and officer certifications. With today's filing of GeneNews’ Q1-2016 results, related management's discussion and analysis and officer certifications, the Company is now current on its disclosure.
In submissions to the Toronto Stock Exchange (“TSX”) and the Ontario Securities Commission (“OSC”), GeneNews has asked for resolution of both the TSX Remedial Review Process and the Management Cease Trade Order (“MCTO”) granted by the OSC.
First Quarter 2016 Financial Results
Effective July 1, 2015, GeneNews changed its functional and presentation currency to U.S. dollars given the increasing prevalence of U.S. dollar denominated activities of the Company over time. These first quarter 2016 financial results are presented in U.S. dollars and prior year comparable information is restated to reflect the change in presentation currency. Results are reported in accordance with International Financial Reporting Standards.
For the three-month period ended March 31, 2016, GeneNews reported a consolidated net loss of $2.7 million, or $0.05 loss per common share, as compared with a consolidated net loss of $1.0 million, or $0.02 loss per common share, for the three-month period ended March 31, 2015.
"The financial report for this first quarter is complex due to the acquisition of the 50% of IDL we did not own," commented GeneNews' Executive Chairman, James R Howard-Tripp. "Focus has been on completing the reorganization and on adequately financing the company so that we can execute the business expansion plans we have with JTS. Building the business is now the priority.”
The Company had approximately $0.3 million in cash and cash equivalents as of March 31, 2016. GeneNews noted that this did not include any of the proceeds from the financings completed by the Company subsequent to the end of the 2016 first quarter.
MCTO Status
On March 29, 2016, GeneNews announced that it had been granted an MCTO by the OSC. The application for the MCTO was made in respect to the expected late filing of its annual financial statements, management’s discussion and analysis, annual information form and the related officer certifications for the financial year ended December 31, 2015 (collectively, the “Annual Filings”) beyond the filing deadline of March 30, 2016.
In the application, both James Howard-Tripp, Executive Chairman, and Leslie Auld, Chief Financial Officer, consented to the issuance of the MCTO and both have been precluded from trading the Company’s common shares until such time as the cease trade order is no longer in effect. The MCTO does not generally affect the ability of shareholders who are not insiders of the Company to trade their securities.
In accordance with the MCTO, GeneNews filed its Annual Filings on www.sedar.com on May 27, 2016.
The Company also anticipates the filing of its quarterly financial statements for the three-month period ended March 31, 2016, related management’s discussion and analysis and officer certifications (collectively, the “Q1-2016 Filings”) as soon as practicable on www.sedar.com today. Until such time as the Q1-2016 Filings are made, the MCTO will remain in effect.
A requirement under the MCTO is that GeneNews update the market every two weeks.
Pursuant to the requirements of section 4.4 of National Policy 12-203 - Alternative Information Guidelines, the Company confirms the following:
- There have been no failures by the Company to fulfill its stated intentions with respect to satisfying the provisions of the alternative reporting guidelines;
- There has not been, nor is there anticipated to be, any specified default subsequent to the default which is the subject of the Default Announcement; and
- There is no other material information respecting the Company's affairs that has not been generally disclosed.
TSX Trading Status
As announced in its press release dated May 19, 2016, the TSX has further extended its Remedial Review Process for a period of 30 days to allow the Company additional time to demonstrate compliance with the continued listing requirements of the TSX (the “Listing Requirements”). The TSX currently intends to make a decision regarding the Corporation's eligibility for continued listing on the TSX by June 17, 2016.
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 sale, merger, strategic financing 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.