Genesis Research calls off proposed merger with Mariposa Health
Genesis Research and Development has called off its proposed merger with Australia-based Mariposa Health.
"Both parties have worked diligently to advance the proposal but it has become apparent that the merger as originally contemplated is unlikely to proceed," Genesis said.
On Jan. 12, the company announced a memorandum of understanding to merge with Australia-based Mariposa Health which is an unlisted public pharmaceutical development company. Genesis' statement to NZX gave no reasons for the merger's failure.
Genesis made a $500,000 annual net loss for calendar 2011 and had $100,000 in cash left at Dec. 31, having suspended operations in May 2010 and laid off all its staff.
Last month, a company named Delight Grace agreed to invest $91,005 in Genesis, buying 9.1 million shares at one cent each.
Genesis was founded in 1994 and has been involved in a string of failed research projects including a treatment for skin condition psoriasis.
Genesis shares last traded at 2.5 cents on June 29, valuing the company at $1.365 million. However, the current "bid" price is 0.5 cents and the lowest offer to sell is 1.5 cents.
The shares traded as high as 6 cents through the middle of last year.
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