Genomic Vision is a publicly-traded company on the Euronext regulated market in Paris
GENOMIC VISION ANNOUNCES THE CONVENING OF AN EXTRAORDINARY SHAREHOLDERS’ MEETING ON FEBRUARY 15, 2019, AND PROVIDES AN UPDATE ON ITS FINANCIAL SITUATION
• Cash and cash equivalents of €3.2 million at December 31, 2018
• Ramping up of the industrial partnership strategy on the in vitro diagnostics and research markets
• €5 million equity refinancing project with Winance to extend the financial visibility to mid-2020
• Restructuring project aiming to cut operating costs by 20% and refocus the strategy on industrial partnerships
Bagneux (France) – Genomic Vision (FR0011799907 – GV), a company specialized in the development of in-vitro diagnostic (IVD) tests for the early detection of cancers and genetic diseases and applications for life sciences research (LSR), informs its shareholders that an Extraordinary Shareholders’ Meeting will be held on February 15, 2019 at 9.30 am CET at Simon & Associés, 47 rue de Monceau – 75008 Paris, and provides an update on its financial situation.
Genomic Vision had cash and cash equivalents of €3.2 million at December 31, 2018 versus €1.7 million at September 30, 2018. This figure includes €2.5 million from the drawdown of the final 3 tranches of the current OCABSA financing program during the fourth quarter of 2018 and €0.3 million via an interest-free loan from Quest Diagnostics maturing on March 31, 2019, secured by certain patents. This cash position shows a net cash burn of €1.3 million over the period.
Over the 2nd half of 2018, the Company intensified its prominent industrial partnership strategy:
- signing, on August 6, 2018, of a partnership with the National Centre for Plant Genomic Resources (CNRGV), which belongs to the French National Institute for Agricultural Research (INRA), to develop a new technique for plant genome analysis;
- finalization, on August 9, 2018, of a licensing agreement on molecular combing technology with European Equity Partners (EEP), with the aim of creating a state-of-the-art bioanalytical services company offering specific analytical services in bioprocessing;
- setting up, on the basis of the positive results of the clinical study in cervical cancer detection (HPV test) published at the end of October 2018, of a partnership with Phyteneo, a specialty pharmaceutical company specializing in medical devices, for the marketing of the HPV integration test in the Czech Republic. Phyteneo will be in charge of the CE marking process and sales of this test in that country. The timetable foresees the grating of the CE marking in the fourth quarter of 2019, which would enable the pilot marketing to be initiated in the Czech Republic.
To enable the Company to continue the development of its activity on the high-potential diagnostics and research markets, an Extraordinary Shareholders’ Meeting is being convened to notably discuss a €5 million equity refinancing project put in place with Winance. Comprising 4 tranches of ABSAs (shares with equity warrants attached) of between €1 and 1.5 million each (first tranche of €1.5 million, followed by two tranches of €1 million and a final tranche of €1.5 million), this additional financing would allow Genomic Vision to extend its financial visibility through to mid-2020 and to continue its development efforts through partnerships and high-value-added projects within the framework of a refocusing of its strategy combined with a restructuring project aimed at reducing operating costs by 20%.
This equity financing project foresees the setting up of a €1.5 million bridging loan at the signing of the contract with Winance that will be repaid with the first tranche of the reserved share issue. The reserved share issues via the issuance of ABSAs will be carried out subject to the granting by the AMF (French stock market authorities) of a visa for the prospectus that will be filed by the Company and a waiver of Winance’s requirement to table a mandatory public offering. Indeed, the investor, Winance, will see its financial holding rise above 30% following the first tranche of €1.5 million, the second tranche of €1 million or the third tranche of €1 million, depending on the share price at the time of issuance of each tranche, which should lead to a mandatory public offering according to stock market regulations. Winance will therefore ask the AMF for an exemption from this requirement to table a public offering pursuant to article 234-9 paragraph 2 of the General Regulations based on financial situation of Genomic Vision presenting financial difficulties with uncertainties regarding its financial visibility beyond the second quarter of 2019 in the absence of additional financing. Furthermore, Winance will pledge to contractually limit its voting rights to 20% whatever its financial stake, in order to confirm its intention of not finding itself in a situation of control of Genomic Vision.
Moreover, Vesalius Biocapital, longstanding main shareholder of Genomic Vision, would participate in the refinancing project by contributing an additional €250 thousand in capital. This additional contribution is independent of the implementation of the refinancing project with Winance.
Aaron Bensimon, co-founder and Chairman of Genomic Vision, comments: “Given our recent achievements, we are confident that our activity will see an upturn in the upcoming months. In order to ensure that this positive trend continues, we would like to invite all of our investors, both institutional and individual, to have their say on our refinancing project at the Extraordinary Shareholders’ Meeting that will be held on February 15, 2019. We are counting on their support to contribute to the ramping up of molecular combing as an indispensable genomic analysis tool in various high-potential fields, both on the in-vitro diagnostics market and the life sciences research applications market.”
The prior notice published today in the BALO (the French bulletin of mandatory legal notices) will be available on the Company’s website in the Investors / General Assembly section
Preparatory documents for this Meeting, including the postal voting form, will be available on the Company’s website within the statutory deadline, and no later than January 25, 2019.
Genomic Vision shareholders who wish to vote on the resolutions can either attend the Extraordinary Shareholders’ Meeting in person, be represented by another person or send the filled out voting form to their bank, which must receive it by February 12, 2019.
Should the required quorum not be met, the Extraordinary Shareholders’ Meeting on the second call would be held on March 4, 2019.
Upcoming financial publication
- FY 2018 revenue: Friday, February 8, 2019 (before market opens)
THE ABOUT GENOMIC VISION
GENOMIC VISION is a company specialized in the development of diagnostic solutions for the early detection of cancers and serious genetic diseases and tools for life sciences research. Through the DNA Molecular Combing, a strong proprietary technology allowing to identify genetic abnormalities, GENOMIC VISION stimulates the R&D productivity of the pharmaceutical companies, the leaders of the diagnostic industry and the research labs.
The Company develops a robust portfolio of diagnostic tests (breast, ovarian and colorectal cancers, myopathies) and analysis tools (DNA replication, biomarkers discovery, gene editing quality control). Based near Paris, in Bagneux, the Company has approximately 50 employees. GENOMIC VISION is a public listed company listed in compartment C of Euronext’s regulated market in Paris (Euronext: GV – ISIN: FR0011799907). For further information, please visit: www.genomicvision.com
Co-fondateur et Président du Directoire
Tél. : +33 1 49 08 07 50
Tel. : +33 1 42 68 29 70
Investor Relations & Strategic Communications
Tel. : +33 1 44 71 94 94
FORWARD LOOKING STATEMENT
This press release contains implicitly or explicitly certain forward-looking statements concerning Genomic Vision and its business.
Such forward-looking statements are based on assumptions that Genomic Vision considers to be reasonable. However, there can be no assurance that such forward-looking statements will be verified, which statements are subject to numerous risks, including the risks set forth in the “Risk Factors” section in its Document de Reference filed with the French Autorité des Marchés Financiers (AMF) on March 28, 2017, under number R.17-009, available on the web site of Genomic Vision (www.genomicvision.com) and to the development of economic conditions, financial markets and the markets in which Genomic Vision operates. The forward-looking statements contained in this press release are also subject to risks not yet known to Genomic Vision or not currently considered material by Genomic Vision. The occurrence of all or part of such risks could cause actual results, financial conditions, performance or achievements of Genomic Vision to be materially different from such forward-looking statements.
This press release and the information contained herein do not constitute and should not be construed as an offer or an invitation to sell or subscribe, or the solicitation of any order or invitation to purchase or subscribe for Genomic Vision shares in any country. The distribution of this press release in certain countries may be a breach of applicable laws. The persons in possession of this press release must inquire about any local restrictions and comply with these restrictions.