"Following the end of the second quarter, we completed a financing transaction that will allow us to continue to execute on our commercialization strategy for our lead product ColonSentry(TM), the world's first blood test for colorectal cancer," said
GeneNews has sufficient funds to continue its operations into the first quarter of 2010. Efforts to secure access to additional capital resources are continuing; however there is no assurance that these initiatives will be successful.
Recent highlights:
- Raised $2,000,000 in a non-brokered private placement, subsequent to
the end of the second quarter.
- Entered into an agreement with DundeeWealth Inc., a leading Canadian
wealth management firm, to offer ColonSentry(TM) to its employees.
- Obtained a commitment of MYR 5 million (CDN$1.6 million) from the
Malaysian Ministry of Health for the development of diagnostic tests
for liver cancer, hepatitis and nasopharyngeal cancer based on the
Company's proprietary platform Sentinel Principle technology.
- Appointed Dr. David Sable to the GeneNews Board of Directors. Dr.
Sable is the portfolio manager for all Life Sciences investing for
the Special Situations Funds based in New York.
Financial results (CDN dollars) for the first quarter-ended June 30, 2009:
For the three-month period ended
For the three-month period ended
Net loss for the three-month period ended
As at
Subsequent to quarter-end, the Company raised gross proceeds of
The Company's annual financial statements and management's discussion and analysis will be available on www.sedar.com.
About GeneNews
--------------
GeneNews is focused on the application of functional genomics to enable early diagnosis and personalized therapeutic intervention based on disease-specific biomarkers. The Company has developed a novel approach, the Sentinel Principle(TM), to detect and stage virtually any disease or medical condition from a simple blood sample. GeneNews is currently applying the Sentinel Principle(TM) in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews' first product in development, ColonSentry(TM), is a convenient and patient-friendly blood-based test that can assess an individual's current risk for colorectal cancer. For more information on GeneNews and ColonSentry(TM), visit www.genenews.com and 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.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Expressed in Canadian dollars)
As at
June 30 December 31
2009 2008
$ $
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ASSETS
Current
Cash and cash equivalents 425,364 1,414,395
Restricted cash 327,163 1,239,605
Accounts receivable 114,067 549,134
Investment tax credits recoverable 200,000 400,000
Prepaid expenses and deposits 105,216 284,423
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Total current assets 1,171,810 3,887,557
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Property, plant and equipment, net 3,012,997 3,400,298
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4,184,807 7,287,855
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 1,792,490 3,156,397
Deferred revenue 25,105 15,871
Current portion of long-term debt 79,511 1,061,368
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Total current liabilities 1,897,106 4,233,636
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Long-term debt 179,012 219,548
Convertible debentures 2,446,183 729,646
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Total liabilities 4,522,301 5,182,830
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Shareholders' equity(deficit)
Capital stock 45,562,516 44,870,734
Contributed surplus 4,344,380 3,753,924
Deficit (50,244,390) (46,519,633)
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Total shareholders' equity(deficit) (337,494) 2,105,025
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4,184,807 7,287,855
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CONSOLIDATED STATEMENTS OF OPERATIONS
AND DEFICIT
(Unaudited)
(Expressed in Canadian dollars)
Three months Three months Six months Six months
ended ended ended ended
June 30 June 30 June 30 June 30
2009 2008 2009 2008
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Revenue
Milestone
revenue $ 96,744 $ 288,438 $ 96,744 $ 582,724
Non-refundable
license revenue - - 254,460 -
Sales 16,500 - 21,250 -
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113,244 288,438 372,454 582,724
Expenses
Research and
development 830,296 3,044,225 1,789,556 5,229,981
Sales and
marketing 153,444 - 272,503 -
General and
administrative 441,063 806,675 1,208,181 1,319,236
Stock-based
compensation 314,068 352,264 590,455 494,538
Amortization of
intellectual
property - 110,537 - 221,074
Interest on
debentures 122,412 - 214,327 -
Interest on long
term debt 16,609 28,172 35,081 58,700
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1,877,892 4,341,872 4,110,103 7,323,528
Interest income 9,172 58,634 12,892 159,694
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Net and
comprehensive loss
for the period (1,755,476) (3,994,800) (3,724,757) (6,581,110)
Deficit, beginning
of period (48,488,914) (35,934,440) (46,519,633) (33,348,130)
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Deficit, end of
period $(50,244,390) $(39,929,240) $(50,244,390) $(39,929,240)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net and
comprehensive
loss per common
share
Basic and fully
diluted $ (0.03) $ (0.07) $ (0.07) $ (0.12)
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-------------------------------------------------------------------------
Weighted average
number of common
shares outstanding
Basic and fully
diluted 55,883,437 55,623,367 55,883,437 55,571,069
-------------------------------------------------------------------------
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Expressed in Canadian dollars)
Three months Three months Six months Six months
ended ended ended ended
June 30 June 30 June 30 June 30
2009 2008 2009 2008
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Cash flows provided
by (used in):
Operations:
Net and
comprehensive
loss for the
period $ (1,755,476) $ (3,994,800) $ (3,724,757) $ (6,581,110)
Items therein
not requiring
cash
Debenture
interest 122,412 - 214,327 -
Stock based
compensation 314,068 352,264 590,455 494,538
Amortization of
capital assets 200,634 213,183 392,486 358,365
Amortization of
intellectual
property - 110,537 - 221,074
---------------------------------------------------------------------
(1,118,362) (3,318,816) (2,527,489) (5,507,133)
Changes in
non-cash working
capital:
Accounts
receivable 215,256 397,391 435,066 861,483
Investment tax
credit
recoverable 200,000 403,141 200,000 867,722
Prepaid expenses
and deposits 208,319 103,452 179,207 57,583
Accounts payable
and accrued
liabilities (572,595) 220,553 (1,363,907) (17,018)
Deferred revenue (2,572) (288,437) 9,234 (582,723)
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(1,069,954) (2,482,716) (3,067,889) (4,320,086)
Financing:
Net proceeds from
issuance of
convertible
debentures - - 2,193,993 -
Proceeds from
exercise of
employee stock
options - 220,350 - 251,100
Restricted cash 912,605 - 912,605 -
Payments on long
term debt (869,814) (145,256) (1,022,392) (288,156)
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42,791 75,094 2,084,206 (37,056)
Investments:
Additions to
capital assets (1,420) (20,057) (5,348) (233,161)
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Increase (decrease)
in cash and cash
equivalents (1,028,583) (2,427,679) (989,031) (4,590,303)
Cash and cash
equivalents,
beginning of
period 1,453,947 9,116,406 1,414,395 11,279,030
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Cash and cash
equivalents, end
of period $ 425,364 $ 6,688,727 $ 425,364 $ 6,688,727
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Supplemental cash
flow information:
Interest recevied 9,172 27,999 12,892 123,957
Interest paid 16,609 28,172 35,081 58,700
For further information: Casey Gurfinkel, (416) 815-0700 x 283, [email protected]
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