Genesis Bioventures reports corporate update
NEW YORK, NY, Jan. 18 /PRNewswire-FirstCall/ -- Genesis Bioventures, Inc. (AMEX:GBI) ("GBI") today reported that the previously announced merger with
Corgenix Medical Corporation (OTCBB:CONX) ("Corgenix") has been terminated. Corgenix notified the Company that its board of directors had voted to exercise
its right to terminate the Merger Agreement (the "Agreement") under section
14.1(e). The termination of the Agreement is not a breach by either party and
GBI remains in a cordial and collaborative relationship with Corgenix.
As previously reported, GBI entered into an agreement with Resources
Development International Group SAK ("RDIG") pursuant to which RDIG would act
as distributor for an offering to raise a minimum of $6 million (all amounts
are set forth in US dollars) with respect to the merger related financing. This
minimum amount was a condition to the merger and is no longer necessary. It is
anticipated that any funds now raised would be available to GBI without any
conditions of merger.
GBI has also been approached by other investment banking firms. The termination
of the Agreement with Corgenix allows any funds raised to be available to GBI
without having to expend merger related costs and may make funding more readily
accessible to the Company. GBI now also has the flexibility to raise funds in
tranches with terms resulting in less dilution to current shareholder
positions. A loan to the Company, including interest, in the amount of
approximately $958,000 has been agreed to by the parties to be converted into
shares of GBI. GBI is also actively pursuing other opportunities to reduce or
eliminate its debt.
Greg McCartney, CEO of GBI, stated, "GBI's main focus has always been the
development of the MSA and we remain determined to further the technology in
the most beneficial manner to the Company and its shareholders. Raising funds
for this purpose may be facilitated without the conditions and risks associated
with the merger. Upon completion of funding, we will be in a position to drive
our efforts on all technology fronts to commercialization." The Company intends to pursue the previously announced Cooperation Agreement
with Efoora, Inc., whereby GBI could explore collaborations with Efoora through
its subsidiary, Virotek, LLC with respect to developing the MSA technology. GBI
is also exploring the possibility of working with Corgenix through a specific
product development agreement. GBI would not be required to allocate funds for
such product development as initial costs incurred by GBI would be deferred
against the advance given to Corgenix by GBI as a condition of the original
definitive agreement between the two companies.
GBI has signed a letter of intent to acquire the remaining holdings of Prion
Developmental Laboratories, Inc. ("PDL") and make it a wholly-owned subsidiary. PDL is engaged in the development of diagnostics that detect prion diseases
such as Mad Cow Disease. Management believes that 100% ownership of PDL's
technology in diagnostic test development would contribute significantly to the
value of the Company. Terms of a definitive agreement will be released if and
when they are determined.
About Genesis Bioventures, Inc.
Genesis Bioventures, Inc. (GBI) is a biomedical development corporation
focusing on the development and marketing of novel diagnostics. GBI's wholly
owned subsidiary, Biomedical Diagnostics, LLC, specializes in the development
of cancer diagnostics. The first product commercially available is the MSA as a
screen for breast cancer risk. Further information on testing can be found on
GBI's website. In addition, the Company has an equity interest in Prion
Developmental Laboratories, Inc., (PDL) which specializes in the development of
diagnostic tests to detect prion disease. PDL received United States Department
of Agriculture (USDA) approval for its Chronic Wasting Disease (CWD) strip
test. CWD is similar to Mad Cow Disease but affects deer and elk.
About Corgenix Corgenix is a leader in the development and manufacturing of anti-Phospholipid
test kits, being the first on the market with an FDA cleared assay for
anti-Cardiolipin (aCL). The Company is based in metropolitan Denver and is
focused on the development of specialized diagnostic kits for immunology
disorders, vascular diseases and bone and joint disorders. Corgenix diagnostic
products are commercialized for use in clinical laboratories throughout the
world. More information is available at http://www.corgenixonline.com/.
Statements in this press release that are not strictly historical facts are
"forward looking" statements (identified by the words "believe", "estimate",
"project", "expect" or similar expressions) within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements inherently involve
risks and uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or contribute to
such differences include, but are not limited to, continued acceptance of the
Company's products and services in the marketplace, competitive factors,
changes in the regulatory environment, and other risks detailed in the
Company's periodic report filings with the Securities and Exchange Commission. The statements in this press release are made as of today, based upon
information currently known to management, and the company does not undertake
any obligation to publicly update or revise any forward-looking statements.
CONTACT:
GBI Investor Relations, (604) 542-0820, , http://www.gnsbio.com/
Aurelius Consulting Group, 800-644-6297, ,
http://www.runonideas.com/
de Jong & Associates, (760) 943-9065, , http://www.dejong.org/ DATASOURCE: Genesis Bioventures, Inc.
CONTACT: GBI Investor Relations, (604) 542-0820, , http://www.gnsbio.com/; Aurelius Consulting Group, (800) 644-6297, , http://www.runonideas.com/; de Jong & Associates, (760) 943-9065, , http://www.dejong.org/
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