- GeneNews closes the $10 Million
Milost Financing, subsequent to the Quarter.
- Approximately 1,700 Tests Processed
- Number of Enrolled practices has now grown to 2,000+
- Planning has commenced for on-boarding of two large healthcare
systems as Company prepares for signature of contracts
- Prepares to launch pilots for large employer groups with a high
risk workforce - first pilot was launched post quarter and showed a
marked impact on test volume
- Actively pursuing agreements with national online physician
network(s) with ability to order tests in all 50 States. Will
utilize the 8,000+ draw sites & mobile phlebotomists added the
last quarter
- Have begun a multi touch-point user engagement campaign to
increase volume among the 2,000+ on-boarded practices
TORONTO, Nov. 15, 2017 /CNW/ - GeneNews Limited (TSX:GEN)
("GeneNews" or the "Company") today announced operational and
financial results for the three-month period ended September 30, 2017, and provided a progress
update on its business.
"The third quarter of 2017 has been a period of substantial
accomplishment," commented James R Howard-Tripp, GeneNews' Chairman
and CEO. "Although test volume was essentially flat vs last quarter
due to the summer months when vacations are more prevalent and the
damaging weather that struck two of our high-volume states, we have
made significant progress in our plans for growth into new
markets."
The Company continued to enroll new practices, bringing practice
enrollment above the 2000 mark. The Company has also begun two
pilot programs. The first pilot is for the launch of a
comprehensive testing program among a high-risk workforce, and the
other is a BreastSentry™ pilot for evaluating breast cancer risk
among women with dense breasts working with a well-respected breast
imaging center. In addition, preparations have begun for
on-boarding two large healthcare systems in expectation of
receiving signed contracts from them.
"Perhaps the most exciting development of the quarter is the
ramp-up of our operations and infrastructure for the execution of a
direct-to-consumer model," says Howard-Tripp.
"This plan will allow us to connect the thousands of patients who
reach out to us each year with a national network of physicians and
8,000 draw sites to dramatically improve patient access to our
tests. As part of the plan's execution, we are building an IT
infrastructure that will allow us to report results electronically
to physician networks and process patient payments online to
generate immediate revenue. This is in line with the emerging trend
of patients demanding greater control over their healthcare and
spending of their healthcare dollars".
Financing Activities and Capital Structure
Subsequent to the quarter, Genenews announced the signing of the
Milost Global Subscription Agreement (the MESA), securing
US$10 million in financing. The
equity and debt subscription agreement includes up to US$4 million in GeneNews' common shares to be
drawn down at the Company's option, in maximum installments of
US$1 million, and up to US$6 million in unsecured convertible notes, also
to be drawn down at the Company's option, in maximum installments
of US$3 million. The Initial
US$500,000 Equity Draw Down will
commence immediately. 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.
GeneNews also announced a warrant exercise incentive program
that closed August 31, 2017. We
received gross proceeds of $77,992
(Cdn$103,715) from the early exercise
of 430,937 warrants, of which 156,250 warrants were exercised by
GeneNews' Chairman and CEO. No further warrants were exercised
during the early exercise period and the exercise price reverted
back to the original exercise price of Cdn$0.50 for the remaining life of the
warrants.
Q3-2017 Financial Results
All amounts are expressed in U.S. dollars unless otherwise
stated and results are reported in accordance with International
Financial Reporting Standards.
For the three-month period ended September 30, 2017, GeneNews reported a
consolidated net loss of $0.6
million, or $0.01 loss per
common share, as compared with a consolidated net loss of
$2.8 million, or $0.04 loss per common share, for the three-month
period ended September 30, 2016. The
$2.2 million decrease in net loss
primarily results from a $1.5 million
change in revaluation of warrants associated with repricing of
warrants. In addition, there were declines in general and
administrative expenses of $0.3
million, in cost of goods sold of $0.3 million and in finance costs of $0.1 million. The Company had approximately
$0.1 million in cash and cash
equivalents as at September 30,
2017.
"Cash received in-house for the Quarter at $54,000 is disappointing, and reflective of the
changes we are currently making in our billing processes. While not
yet reflected in the Company's financial results, we estimate our
outstanding 2017 billings at approximately $1.8 million and continue to anticipate that our
recognized revenue will begin to grow in the months ahead," added
Howard-Tripp. "Two pilot programs have demonstrated that our
anticipated 70% recovery rate is achievable".
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