Genesis Research and Development said its annual loss narrowed to $500,000 from $2 million in 2010 after the company suspended operations in May 2010 and laid off all staff.
Genesis had $100,000 in cash left at Dec. 31, down from $300,000 a year earlier.
“Genesis has been reviewing a number of possible investment transactions,” said chief executive Stephen Hall. “Unfortunately, most of the projects were considered unsuitable or the terms on which they were available was not satisfactory.”
But on Jan. 12 this year, the company announced a memorandum of understanding to merge with Australia-based Mariposa Health which is an unlisted public pharmaceutical development company.
Subject to various conditions including due diligence and regulatory approvals, the effective backdoor listing for Mariposa will result in Genesis issuing about 200 million new shares to Mariposa's owners. Genesis currently has 45.5 million shares which last traded at 2 cents, the bottom of its year range, valuing it at $900,000 – the peak was 6 cents.
Genesis' existing shareholders will retain the right to 50 percent of any proceeds from any sale of Genesis' interest in Real Time Genomic which occurs within the next five years, provided they remain Genesis shareholders.
Genesis was founded in 1994 and has been involved in a string of failed research projects including a treatment for skin condition psoriasis.