GeneNews Reports First Quarter 2012 Financial Results
TORONTO, CANADA (May 11, 2012):
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 period ended March 31, 2012.
For the three months ended March 31, 2012, the Company reported a net loss of $1,260,709, or $0.01 loss per common share, as compared to a net loss of $1,144,304, or $0.02 loss per common share for the three months ended March 31, 2011.
"As announced in early April, ColonSentry® has just recently been launched in the U.S. by our marketing partner, Enzo Clinical Labs, who is focused on establishing a strong presence in the New York and New Jersey region. Feedback from Enzo in these early weeks has been positive. The approval and launch of ColonSentry® are significant achievements for the commercialization of our Sentinel Principle® platform technology. We look forward to updating you on further progress," said Gailina J. Liew, President & Chief Operating Officer of GeneNews.
On April 18, the Company announced a rights offering of 92,898,117 Rights to all eligible common shareholders as of the record date of May 1, 2012. Four (4) Rights entitle the holder to subscribe for one new common share at $0.11 per share. On a fully subscribed basis, the offering will result in maximum gross proceeds of $2,554,698. The Rights are listed and trading on the Toronto Stock Exchange (TSX:GEN.RT) until they expire on June 5, 2012. The Company intends to use the net proceeds of the offering to support expanded commercialization of ColonSentry™ and for general corporate and administrative purposes. The Chair of the Company's Board of Directors and AWM Investment Company, Inc. have entered into a stand-by guarantee agreement with the Company to exercise Rights and purchase new common shares to result in gross proceeds of at least $1,000,000, under terms identical in all aspects to those of the shareholders as a whole under the offering.
The Company's financial statements, management's discussion and analysis and rights offering circular 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 a range of diseases or medical conditions 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' lead product, ColonSentry®, is the world's first blood test to pre-screen and assess an individual's current risk for colorectal cancer. For more information on GeneNews and ColonSentry®, go to 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.