- Obtains $2.5 million debt financing for new facility -
TORONTO, Oct. 17 /CNW/ - GeneNews Limited (TSX: GEN), a company focused on developing simple blood-based biomarker tests for the early detection of diseases and personalized health management, today announced that it has relocated its Head Office and research lab facilities to a new stand-alone building located in the Greater Toronto Area, Ontario.
"This move facilitates the commercialization of our lead product, ColonSentry(TM), and is critical to the ongoing advancement of our business. The new location provides us with expanded laboratory and office space to support our growth. Importantly, it enables the implementation of regulatory-compliant quality systems, and the potential for development of a clinical reference laboratory and GMP manufacturing capabilities," said K. Wayne Marshall, MD, PhD, President and Chief Executive Officer of GeneNews.
In addition, RBC has agreed to provide GeneNews with financing of $2.5 million in the form of a 36-month $1.5 million capital lease, a revolving $500,000 credit facility secured by the Company's government grants receivable, as well as a letter of credit and credit card facilities. In addition, the Company's Landlord has also provided an allowance of up to $400,000 for certain leasehold improvements.
"We thank RBC for their expression of support of our Company's growth and potential. The non-dilutive funding RBC is providing ensures that the cost of our new facility will not negatively impact our cash reserves, allowing us to focus our resources on product development and commercialization activities. We are pleased to be working with RBC to develop a strategic banking relationship as we grow," added Colin T. West, CA, and Vice President, Finance and Chief Financial Officer of GeneNews.
GeneNews is now located at: 2 East Beaver Creek Road, Bldg. 2
Richmond Hill, Ontario L4B 2N3
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 in major areas with unmet clinical needs such as cancer, arthritis, cardiovascular disease and neurological disorders. GeneNews' first product in development, ColonSentry, is a convenient and patient-friendly blood-based biomarker test that can detect colon cancer. For more information on GeneNews, visit www.genenews.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.
SOURCE GeneNews Limited
For further information: For further information: Dr. K. Wayne Marshall, President & CEO, (905) 739-2035, firstname.lastname@example.org; James Smith, (416) 815-0700 x 229, email@example.com