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16 June 2006
Auckland, New Zealand, 16 June 2006 – Genesis Research and Development Corporation Ltd (NZSX/ASX: GEN) advises that ArborGen, LLC has paid to Genesis the agreed sum of US$5.5 million following the completion by Genesis of the transfer to ArborGen of all rights and ownership in certain biological and other materials, patents and technology including all its forestry related technology. If certain ownership restructuring events occur in ArborGen prior to March 2007, ArborGen will pay Genesis an additional US$1.5 million. Genesis will maintain its rights to receive a royalty on certain patented technology to the extent that such technology is included in commercial products developed and sold by ArborGen. Genesis does not have any right to use the technology transferred to ArborGen in any field and has agreed to not operate in the forestry field. As agreed, the legal action between the two companies and certain directors of ArborGen has been dismissed by consent. Genesis is entitled to continue the AgriGenesis programme to develop biofuels and biomaterials by growing and refining shrubby willow. Stephen Hall, Chief Executive of Genesis, commented “The substantial increase in cash reserves will allow Genesis to develop its therapeutics business with additional vigour and to pursue new opportunities for development of the business. Genesis currently has cash of NZ$11.7 million, (NZ$0.45 per share), substantially more than many other biotech companies.” About Genesis Founded in 1994, Genesis is a New Zealand-based biotechnology company. It has built a broad therapeutic development platform targeting immune disorders and cancer and is focusing on developing RNAi therapeutics. The company has an extensive patent portfolio. AgriGenesis, a wholly owned subsidiary of Genesis, has been developing technologies to grow shrubby Salix (willow) and produce valuable biofuels and biomaterials including ethanol, xylose and unsulfonated lignin. AgriGenesis plans to transfer this programme to Biojoule Technologies Ltd which is seeking to raise new capital and government investment to support the ongoing development of the programme. For more information, please visit www.genesis.co.nz and www.agrigenesis.co.nz Media contacts: Stephen Hall, Chief Executive - Genesis Research and Development Corporation Limited, +64 9 373 5600 |