GeneNews reported operational and financial results for the three-month
OREANDA-NEWS. GeneNews Limited (TSX:GEN) (“GeneNews” or the “Company”) today reported operational and financial results for the three-month and six-month periods ended June 30, 2016.
Effective July 1, 2015, GeneNews changed its functional and presentation currency to U.S. dollars given the increasing prevalence of U.S. dollar denominated activities of the Company over time. These second quarter 2016 financial results are presented in U.S. dollars and prior year comparable information is restated to reflect the change in presentation currency. Results are reported in accordance with International Financial Reporting Standards.
For the three-month period ended June 30, 2016, GeneNews reported a consolidated net loss of $1.5 million, or $0.02 loss per common share, as compared with a consolidated net loss of $1.3 million, or $0.03 loss per common share, for the three-month period ended June 30, 2015. For the six-month period ended June 30, 2016, GeneNews reported a consolidated net loss of $4.2 million, or $0.07 loss per common share, as compared with a consolidated net loss of $2.3 million or $0.05 loss per common share, for the six-month period ended June 30, 2015. This increase in year-to-date loss arises primarily from the consolidation of results from IDL’s operations beginning after March 15, 2016, when we acquired the full 100% interest in IDL. Until March 15, 2016, we followed equity accounting for presenting our share of IDL as we had joint control.
The Company had approximately $0.04 million in cash and cash equivalents as of June 30, 2016. The Company noted that this did not include any of the proceeds from its previously announced first draw down under its capital commitment agreement with GEM Global Yield Fund LLC SCS and additional borrowings within its modified interim working capital loan with a major shareholder, who is also a director of the Company.
“With the reorganization behind us and additional working capital in place, our focus is now squarely on the execution of our business acceleration plans with JTS Health Partners,” commented GeneNews’ Executive Chairman, James R Howard-Tripp. “There continues to be strong interest in our early cancer diagnostic platform, and we remain optimistic that our collaboration with JTS will result in the announcement of a first partnership in the near future.”
GeneNews is focused on developing and commercializing proprietary molecular diagnostic tests for the early detection of diseases and personalized health management, with a primary focus on cancer-related indications. The Company's lead product, ColonSentry®, is the world's first blood test to assess an individual's current risk for colorectal cancer. GeneNews' common shares trade on the Toronto Stock Exchange under the symbol 'GEN'.
Richmond, Virgina-based IDL is a national clinical reference lab specializing in personalized blood-based testing to help find, understand, and address cancer risk in patient populations. IDL’s mission is to provide a comprehensive menu of traditional and advanced clinical evidence-based blood tests that aid in early cancer detection. Currently IDL offers risk assessment blood tests for the three most prevalent cancer types including lung, colon and prostate. IDL is actively in-licensing and commercializing an array of DNA, RNA, protein and autoantibody blood-based cancer diagnostic tests to address early detection of all major types of cancer.