GeneNews Reports Second Quarter 2011 Financial Results
TORONTO, CANADA (August 10, 2011):
GeneNews Limited (TSX:GEN), a company focused on developing blood-based biomarker tests for the early detection of diseases and personalized health management, today reported operational and financial results for the three-month and six-month periods ended June 30, 2011.
During the quarter, gross proceeds of $2,992,007 was raised and $1,439,517 in principal and interest were converted into common shares pursuant to the Company's warrant exercise program and debenture conversion opportunity.
For the three months ended June 30, 2011, the Company reported a consolidated net loss of $1,090,110, or $0.01 loss per common share, as compared to a consolidated net loss of $1,328,769, or $0.02 loss per common share for the three months ended June 30, 2010 primarily due to a decline in research and development costs due to the application of government funds received by the Company's Malaysian subsidiary for the liver and hepatitis program with the Malaysian Ministry of Health for related activities during the period. The Company had not yet received any funding from the Malaysian Ministry of Health during the comparative quarter in 2010.
For the six months ended June 30, 2011, the Company reported a consolidated net loss of $2,234,414, or $0.03 loss per common share, as compared to a consolidated net loss of $2,761,170, or $0.04 loss per common share for the six months ended June 30, 2010, a decline of $526,756, primarily due to declines in research and development.
"The funds raised during the quarter has strengthened our ability to support our partners as they prepare to launch ColonSentry™ in the United States, China and Malaysia. We continue to seek additional ColonSentry marketing partners to expand our commercial footprint while also engaging with potential strategic partners to establish our Sentinel Principle technology platform as an industry standard," said Gailina J. Liew, President Chief Operating Officer of GeneNews.
As at June 30, 2011, the Company's unrestricted cash, cash equivalents and short-term investments amounted to $3,527,805.
The Company's financial statements and management's discussion and analysis are available on www.sedar.com.
GeneNews is an emerging molecular diagnostics company focused on the application of functional genomics to enable early diagnosis and personalized health management based on disease-specific biomarkers. The Company has a patented core platform technology, the Sentinel Principle®, which has the power to detect and stage virtually any disease or medical condition from a simple blood sample. GeneNews is currently applying the Sentinel Principle® in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews launched its first commercial product, ColonSentry™, a blood-based test to pre-screen and assess an individual's risk for colorectal cancer, in Canada in 2008. The company's marketing partners, GeneDiagnostics and Enzo Clinical Labs, are expected to launch the ColonSentry™ test in China and the United States in 2011. For more information on GeneNews and ColonSentry™, visit www.genenews.com or www.ColonSentry.com.
This press release contains forward-looking statements, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could 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.