Stephen Hall, CEO of Genesis Research. Photo / Amos Chapple
Biotech firm Genesis Research and Development is looking for funds and to re-launch in the dairy sector with a link to China.
The NZSX-listed company made a net loss of $511,000 for the six months ending June 30.
Chief executive Stephen Hall said it had been a challenging period as
the company ceased active operations.
However, the company was planning to start a new, smaller laboratory and was pursuing opportunities for the development of new products in the dairy industry.
"We've identified some space and we're negotiating to move there," Hall said.
Genesis Research had a cash balance of $204,000 at June 30.
"We immediately need new funding and so the plan is to hold a meeting of shareholders to approve a further capital placement to the UBNZ group, who have shown interest in investing and that will provide the initial funding to establish the labs and get going again," he said.
Genesis Research in June placed 7.4 million shares at 6c, raising $446,278 from a group of investors represented by UBNZ Funds Management, giving it a 16.3 per cent stake.
UBNZ Assets Holdings is 20 per cent owned by Hong Kong stock exchange listed Natural Dairy (NZ) Holdings, which in March said it was trying to raise $1.5 billion to fund an acquisition spree, including dairy farms and plans for processing facilities.
"We're looking to work with them and develop products that they can immediately implement and take to China and thereby we've got a ready market for what we do," Hall said.
Revenue for the six months ending June was $595,000, including the sale of equipment and charges for contract work to Solirna Biosciences, which was 86 per cent owned by Genesis.
The milestone for Solirna would be a proof of principle to validate its concept of gene silencing technology.
"That sort of milestone could only be perhaps six months away," Hall said.
"So it was tantalisingly close but we just ran out of money and had to stop the work."
A number of parties were interested in investing in Solirna and the company hoped the research programme could be continued.
Genesis Research shares were trading steady yesterday at 4.5c.
