A company associated with high-profile businesswoman May Wang has thrown a lifeline to listed biotech firm Genesis Research and Development.
Genesis Research said last month it was suspending operations in New Zealand because of lack of funding but was negotiating several transactions intended to maintain value for shareholders.
The company
said yesterday it had 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. Wang has been a key figure in plans by Hong Kong stock exchange-listed Natural Dairy (NZ) Holdings - a 20 per cent shareholder of UBNZ Assets Holdings - to invest in the dairy industry.
Last month receivers Michael Stiassny and Brendon Gibson said a sale and purchase agreement had been signed with UBNZ Funds for 16 farms, which was structured to allow the receivers to accept any better or more favourable offer and was conditional on Overseas Investment Office consent.
Genesis Research chief executive Stephen Hall said UBNZ Funds came to Genesis. "I guess they can see the capability and competence we have and felt that it was worthy of investing to continue the business in New Zealand.
"It won't last forever and pay for everything that we would like to do but it gives us confidence that there's a party out there that likes us and wants to go forward with us, so we're very pleased about it."
Genesis said it was reviewing the possibilities of dairy industry product development and research contracts.
"With New Zealand's background and involvement in the dairy industry it's certainly an opportunity to move into product development that would provide quicker and lower risk returns than in the very, very long-term pharmaceutical, therapeutic-type developments that we've predominantly focused on in the past," Hall said.
A spokesman for Wang said: "The biotech research capabilities in respect of the dairy industry are obviously of interest to her."
Genesis Research shares closed 2c down yesterday at 3c.
