TORONTO, March 9, 2017 /CNW/ - GeneNews Limited (TSX:GEN) ("GeneNews" or the "Company") announced today that its subsidiary, GeneNews (USA), Inc., has reached a settlement agreement (the "Agreement") with the HDL Liquidating Trust (the "Liquidating Trust") to resolve its outstanding $US 2,000,000 Secured Demand Promissory Note (the "Note") from the Company's previously announced acquisitions of the full ownership of Innovative Diagnostic Laboratory, LLP ("IDL").
On May 19, 2015, GeneNews announced that it had increased its ownership stake in IDL to 50% by issuing a one-year secured demand promissory note in the principal amount of US$ 1,000,000. On March 4, 2016, the Company concluded a second purchasing agreement, in which it acquired the remaining ownership interest in IDL, assuming the liability of former partner, Cobalt Healthcare Consultants, Inc.'s US$ 1,000,000 secured demand promissory note.
Under terms of the Agreement, which represents a compromise of disputed claims for both parties, GeneNews (USA) Inc., will pay the Trust an aggregate settlement amount of $2,095,843, to be paid in a $25,000 upfront payment, a $15,000 payment on a monthly basis from March 1, 2017 to July 1, 2017, followed by monthly payments of $10,000 until the outstanding debt has been paid in full. The Agreement will be submitted to the bankruptcy court for review and is expected to be approved before the end of March 2017.
"We are pleased to come to terms on this outstanding debt, which represents an equitable agreement for both parties and helps provide GeneNews with the financial flexibility to continue to execute against its business plan," commented GeneNews Chairman and CEO, James Howard-Tripp.
GeneNews is committed to becoming a leader in advanced diagnostics and personalized medicine, serving as a strong commercialization outlet for early detection of cancer and other chronic diseases. Our mission is to identify, assess and make commercially available a comprehensive menu of diagnostics that provide physicians and patients with personalized clinical intelligence and actionable information to improve health out-comes through the early diagnosis of disease. Our Richmond, Virginia-based Innovative Diagnostic Laboratory clinical reference lab specializes in traditional and advanced clinical evidence-based blood testing that helps find, understand, and address cancer risk in patient populations. Currently, IDL offers risk assessment blood tests for the three most prevalent cancer types - colon, lung and prostate. GeneNews' common shares trade on the Toronto Stock Exchange under the symbol 'GEN'. More information on GeneNews can be found at www.GeneNews.com.
This press release contains forward-looking statements identified by words such as "expects", "will" and similar expressions, which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties that could cause the Company's actual events to 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, except as required by law.
SOURCE GeneNews Limited
For further information: Company Contact: James R. Howard-Tripp, Chairman & CEO, Office: (905) 209-2030, [email protected]; Investor & Media Contact: Stephen Kilmer, Office: (212) 618-6347, Mobile: (647) 872-4849, [email protected]