04:07:20 EDT Thu 28 May 2020
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GeneNews Ltd (2)
Symbol GEN
Shares Issued 178,261,234
Close 2019-05-15 C$ 0.145
Recent Sedar Documents

GeneNews' Q1 loss widens due to warrant revaluation

2019-05-16 09:04 ET - News Release

Mr. James Howard-Tripp reports


GeneNews Ltd. has provided operational and financial results for the three-month period ended March 31, 2019, and has provided a progress update on its business.

According to the company's chief executive officer, James R. Howard-Tripp: "We had a busy first quarter preparing for the launch of our telehealth program. This initiative is extremely important because it underpins so many aspects of our business strategy and is anticipated to be 30 per cent of GeneNews' revenue in 2019. Telehealth is an immediate, cash paying model, and meets the needs of patients who want greater access to these types of tests. It will also allow us to build outreach programs to the 1.2 million firefighters across the country and will be an integral part of our screening programs for large employer groups across the 50 states."

The telehealth program was officially launched on April 1, 2019, and the company has begun to process initial patient orders. Incremental growth will continue with the launch of a national marketing campaign that includes social media marketing, digital advertising and print media. In addition, the company expects to add new partners that can help accelerate exposure and uptake of all four tests.

Planning for the final clinical validation of Aristotle is under way. Aristotle is built on the company's proven and proprietary Sentinel principle technology platform and can test for 10 cancers from a single sample of blood with high sensitivity and specificity. The technology platform was successfully proven through the development of Colonsentry, a blood test for the early detection of colorectal cancer that was validated in a 10,000-patient clinical trial and has now been used in over 100,000 patients in North America.

The company is in discussion with an international distributor for the marketing of the company's tests in Europe and other territories. Initial focus will be on ColonSentry.

The company continues discussions with large employers where there are opportunities to help reduce catastrophic cancer claims among aging populations, that have a higher prevalence of cancer. This has the additional benefit of enhancing employee relations and will support risk stratification of employees who are at higher risk for cancer and can therefore benefit from earlier interventions.

Moving forward, the company is refocusing its energies and resources on becoming the first multiple cancer, liquid biopsy, in the market that can identify the presence of 10 specific cancers from a single sample of blood. On June 19, 2019, the company will seek shareholder approval for the new name of the company, to reflect the company's new mission and direction.

The annual and special meeting of shareholders will be held at 4:30 p.m. on June 19, 2019, at the offices of WeirFoulds LLP, TD Centre, 66 Wellington St., Toronto. The company will make a full presentation during which the new direction will be fully outlined and the business plan for 2019 explained in detail.

Q1 2019 financial results

All amounts are expressed in U.S. dollars unless otherwise stated and results are reported in accordance with international financial reporting standards.

For the three-month period ended March 31, 2019, the company reported a consolidated net loss of $6.0-million, or five-cent loss per common share, as compared with a consolidated net loss of $600,000, or nil loss per common share, for the same period in 2018. The $5.4-million increased loss results from the $4.6-million impact of the revaluation of warrants, the $200,000 increase in general and administrative costs and the $700,000 increase in finance costs offset by $100,000 from a combination of increased revenue and reduced cost of sales.

Test volume at approximately 1,600 tests showed an increase over Q4 and is showing growth in Q2 as the new programs are launched.

The company's financial statements and management's discussion and analysis are available on SEDAR.

About GeneNews Ltd.

GeneNews is dedicated to developing and commercializing innovative solutions for early cancer detection. Our mission is to provide advanced diagnostics that can help physicians identify cancer in their patients at the earliest possible stage (stage 0) when it is the most curable. As early pioneers in the liquid biopsy space, GeneNews developed one of the first blood-based biomarker tests for the early identification of colorectal cancer.

We seek Safe Harbor.

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