NEW YORK (GenomeWeb News) – Rosetta Genomics today said that it has sold its stake in Rosetta Green, a majority owned subsidiary of the firm, for an upfront payment of $900,000.
Rosetta Genomics formed Rosetta Green in 2010 to focus on microRNA-based agricultural and clean technology applications. It initially held a 76 percent stake in the subsidiary until Rosetta Green went public on the Tel Aviv Stock Exchange earlier this year.
Rosetta Genomics sold its stake, which was slightly more than 50 percent, to certain unnamed purchasers. In addition to the upfront payment, Rosetta Genomics could receive an additional $2 million if Rosetta Green is acquired within three years and if certain other conditions are met in connection with such an acquisition.
The sale of its stake in Rosetta Green "provides some important, non-dilutive funding as we continue to work to improve our cash position," Kenneth Berlin, president and CEO of Rosetta Genomics, said in a statement.
The cash-strapped firm, which makes microRNA-based diagnostic tests for cancer, recently announced a restructuring, under which it plans to cut 24 jobs.
As of June 30, it held $3.1 million in cash and cash equivalents. But last month it said that it had raised $1.5 million of its planned $1.9 million target in a private placement.