- Have now enrolled more than 2,000 medical practices in the
Innovative Diagnostic Laboratory ("IDL") system
- More than 1,800 tests were processed by IDL in the quarter,
which is more than three times the level in Q1
- Expanded the program for patient access to blood drawing
services to more than 8,000 sites across the USA
- Introduced mobile phlebotomist component to add convenience and
ease to draw site access
- Initiated early cancer screening program working directly with
large at-risk workforce
- Signed binding commitment letter with Milost Global for
US$10 Million financing
- Announced Warrant Exercise Incentive Program to encourage early
exercise of outstanding and unlisted warrants
TORONTO, Aug. 15, 2017 /CNW/ - GeneNews Limited (TSX:GEN)
("GeneNews" or the "Company") today announced operational and
financial results for the three-month period ended June 30, 2017, and provided a progress update on
its business.
"The second quarter of 2017 has seen increasing growth of our
IDL business as well as the expansion of access to our tests via
new practices and much expanded blood-draw site accessibility"
commented James R Howard-Tripp, GeneNews' Chairman and CEO. "These
developments, along with GeneNews' aggressive outreach campaign to
large healthcare systems, hospitals, clinically integrated
networks, large physician groups and specific at-risk communities,
is expected to significantly expand our list of users and further
drive the continued growth of the business."
Financing Activities and Capital Structure
In the quarter, Genenews announced the signing of a binding
commitment letter with Milost Global Inc., securing US$10 million in financing. The equity and debt
subscription agreement (the "MESA") includes a US$3
million initial draw down, an investment from Milost of up to
an additional US$3 million in unsecured convertible notes
to be drawn down at the Company's option, and up to US$4
million in GeneNews' common shares to be drawn down, also at
the Company's option, in maximum installments of US$1
million. The Company expects to close on the first note
within the next few weeks. Proceeds raised from the initial draw
down will be used for working capital and especially for the
continued execution of the Company's growth strategy.
During the second quarter, GeneNews amended the exercise price
of outstanding common share purchase warrants (the "GEM Warrants")
as issued to GEM Global Yield Fund LLC SCS as per the
agreement.
GeneNews also announced a warrant exercise incentive program
that will close August 31, 2017.
GeneNews believes that with the additional capital from the
exercise of warrants, the Company will be in a stronger position to
continue with the development of the IDL business via expanded
marketing programs.
Q2-2017 Financial Results
All amounts are expressed in U.S. dollars unless otherwise
stated and results are reported in accordance with International
Financial Reporting Standards.
Total revenue for the three-months ended June 30, 2017, reflecting actual revenue
collected by IDL, was approximately $0.1
million, compared to $0.5
million for the same period in 2016. For the
three-month period ended June 30,
2017, GeneNews reported a consolidated net loss of
$0.5 million, or $0.01 loss per common share, as compared with a
consolidated net loss of $1.5
million, or $0.02 loss per
common share, for the three-month period ended June 30, 2016. The $1.0
million decrease in net loss primarily results from the
$1.3 million change in revaluation of
warrants associated with repricing of warrants in June 2017. In addition, there was lower collected
revenue of $0.4 million, offset by
declines in general and administrative expenses of $0.1 million.
The Company had approximately $0.1
million in cash and cash equivalents as at June 30, 2017.
"While not yet reflected in the Company's financial results, we
estimate our outstanding 2017 billings at approximately
$1.4 million and continue to
anticipate that our recognized revenue will begin to grow in the
months ahead," added Howard-Tripp.
The Company's financial statements and management's discussion
and analysis are available on www.sedar.com.
About GeneNews
GeneNews, an innovator in the liquid biopsy space, is committed
to becoming a leader in advanced diagnostics and personalized
medicine, serving as a strong commercialization outlet for early
detection of cancer and other chronic diseases. Our mission is to
identify, assess and make commercially available a comprehensive
menu of diagnostics that provide physicians and patients with
personalized clinical intelligence and actionable information to
improve health out-comes through the early diagnosis of
disease. Our Richmond,
Virginia-based Innovative Diagnostic Laboratory clinical
reference lab specializes in traditional and advanced clinical
evidence-based blood testing that helps find, understand, and
address cancer risk in patient populations. Currently, IDL offers
risk assessment blood tests for four prevalent cancer types -
colon, lung, prostate and breast. GeneNews' common shares trade on
the Toronto Stock Exchange under the symbol 'GEN'. More
information on GeneNews and IDL can be found at www.GeneNews.com
and www.myinnovativelab.com, respectively.
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. The forward-looking statements involve
risks and uncertainties 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.
SOURCE GeneNews Limited