Auckland-based biotechnology company Genesis Research and Development Corp has found a potential New Zealand investor and may change its mind about moving its operations offshore, chief executive Stephen Hall says.The company said today that it hoped to c
Auckland-based biotechnology company Genesis Research and Development Corp has found a potential New Zealand investor and may change its mind about moving its operations offshore, chief executive Stephen Hall says.
The company said today that it hoped to complete the placement of 7.4 million shares at 6c each, raising $446,278, in the next two weeks.
Last month, Genesis said it was suspending operations in New Zealand with the loss of nine jobs after funding dried up in what was considered a high risk sector, which was feeling the fallout of the global financial crisis.
Genesis was not considering delisting from the New Zealand or Australian stock exchanges, with most of its 2000 shareholders New Zealand small retail investors, Mr Hall said today.
The company was rethinking plans to locate its operations offshore, although it still had the option of using an overseas lab for some of its work.
"The previous position was that we were ceasing operations in New Zealand. With this new placement and new opportunities we may well restart operations in New Zealand," he told NZPA.
The placement was to a New Zealand investor, whose identity remained confidential.
"Genesis is in discussions with the new investor about the possible future focus of research and development efforts and the financing required.
"When discussions are concluded, a proposal will be presented to shareholders to approve any new direction for the company and the issuance of further shares to new investors."
Genesis was still looking for new investors in its Solirna Biosciences, to allow further development of its genetic technology.
Other Genesis assets would be retained until value could be realised for shareholders, he said.
The company was considering whether to focus more on shorter term prospects with lower risk, in place of the long-term, high risk, expensive research it had been undertaking.
Genesis had a traditional focus on human health, but did a lot of research into agricultural biotech, some of which it considered still had some economic interest.
Genesis shares last traded on May 18, at 3.1c.
