TORONTO, Aug. 9, 2012 (GLOBE NEWSWIRE) -- GeneNews Limited (TSX:GEN), a company focused on developing blood-based biomarker tests for the early detection of diseases and personalized health management, today reported operational and financial results for the three-month period ended June 30, 2012.
Results were characterized by the initial commercial launch of ColonSentry®, the world's first blood test to assess an individual's current risk for colorectal cancer, by the Company's first U.S. marketing partner, Enzo Clinical Labs ("Enzo"). ColonSentry® royalty revenues were recognized by the Company for the first time based on this initial commercial launch in April.
During the quarter, the Company successfully completed a Rights offering resulting in the issuance of 23,224,528 Common Shares at a price of $0.11 per Common Share for gross proceeds of approximately $2,554,698. The Rights offering was strongly supported by the Company's shareholders in the basic and additional subscription rounds with only 1,190,811 Common Shares issued from the Stand-by guarantee entered into by two significant shareholders of the Company.
For the three months ended June 30, 2012, the Company reported a net loss of $1,278,713, or $0.01 loss per common share, as compared to a net loss of $1,090,110, or $0.01 loss per common share for the same three-month period in 2011.
"The launch of ColonSentry® into the U.S. in April marks a significant milestone for GeneNews. Our U. S. marketing partner reports that the early interest shown by doctors and patients in their initial launch into New York and New Jersey has been high and current efforts are focussed on increasing lab capacity and an expanded launch. Accordingly, we believe that the ColonSentry® business will start to generate meaningful and growing revenues toward the end of 2012," said Gailina J. Liew, President & Chief Operating Officer of GeneNews.
The Company's financial statements and management's discussion and analysis are available on www.sedar.com.
About GeneNews
GeneNews is an emerging molecular diagnostics company focused on the application of functional genomics to enable early diagnosis and personalized health management based on disease-specific biomarkers. The Company has a patented core platform technology, the Sentinel Principle®, which has the power to detect and stage a range of diseases or medical conditions from a simple blood sample. GeneNews is currently applying the Sentinel Principle® in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews' lead product, ColonSentry®, is the world's first blood test to pre-screen and assess an individual's current risk for colorectal cancer. For more information on GeneNews and ColonSentry®, go to www.GeneNews.com or www.ColonSentry.com.
Forward-Looking Statements
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.