Genesis Research and Development, which is planning a ‘reverse takeover' of Australian medical researcher Mariposa Health, has batted insolvency claims after getting a ‘please explain' notice from NZX Market Supervision.
BUSINESSDESK: Genesis Research and Development, which is planning a ‘reverse takeover’ of Australian medical researcher Mariposa Health, has batted insolvency claims after getting a ‘please explain’ notice from NZX Market Supervision.
The Auckland-based company hasn’t received any questions from shareholders as to its solvency, and “can confirm that it is able to pay its debts as they fall due and continues to be solvent,” chief executive Stephen Hall said in a letter of response.
The statement came after the market supervisor queried its solvency after saying it received a complaint from a Genesis shareholder alleging the company may be insolvent.
The stock exchange regulator also asked whether the company was complying with continuous disclosure rules over its planned merger with Mariposa, to which Hall said progress has been made, but no date has been set down for the shareholder meeting to secure approval.
The deal is essentially a backdoor listing for the unlisted Australian company on the NZX, which would then seek to raise fresh capital to pursue its development programmes.
Genesis posted a loss of $500,000 in the 2011 calendar year, and had just $100,000 of cash as at Dec. 31.
The company suspended New Zealand operations in 2010 when funding dried up. Its Solirna Biosciences joint venture stalled when the Japanese partner opted not to put up more funds.
Solirna’s gene silencing research aimed to deliver disease-curing payloads into human cells. It was turned down for additional funding from the Foundation for Research, Science and Technology.
Genesis then turned to UBNZ Asset Holdings, the company associated with the failed bid for the Crafar Farms, when it started burning through cash, but has since distanced itself after front-woman May Wang and Jack Chen were arrested for alleged fraud by Hong Kong authorities.
The shares last traded yesterday at 2.2 cents apiece, valuing the company at $1 million.
