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Genetic Technologies Eyes A$4.5M Private Placement; Explores Blockchain Partnership

NEW YORK (GenomeWeb) – Australian molecular diagnostics firm Genetic Technologies said today that it intends to raise up to A$4.5 million ($3.6 million) through the private placement of up to 324.7 million newly issued shares at a price of A$.014 each.

The company said that it has hired investment firm Lodge Corporate to assist with the proposed offering, which remains subject to shareholder approval.

Genetic Technologies also announced that it is in discussions to form a strategic alliance with Blockchain Global to develop medical and biotechnology applications that combine their respective technologies.

Genetic Technologies offers the BrevaGenplus breast cancer risk assessment test and is developing additional cancer risk assessment products including one for colorectal cancer. The company, however, has experienced "significant losses" and the recent ouster of three of its directors including CEO Eutillio Buccilli. It has also been conducting a review of its strategic alternatives.

Melbourne, Australia-based Blockchain Global specializes in providing blockchain technology — which is used to securely track and record online transactions in a way that cannot be manipulated by any one entity — to the Bitcoin network, but aims to expand into different markets.

Genetic Technologies and Blockchain Global are negotiating a partnership that may include Blockchain Global assisting Genetic Technologies in creating a platform that uses blockchain to enable the collection and dissemination of genomic data, or the development of a blockchain-based technology for addressing prescription drug counterfeiting. The companies could also form a joint venture to support and fund the development of blockchain-based biomedical technologies, Genetic Technologies said.

"The merging of genomics and global digital platforms will create exciting opportunities," Genetic Technologies Chairman Paul Kasian said in a statement. "Blockchain is a trusted digital ledger that provides a secure, low-cost, and fast way to gather and disseminate information, and we look forward to exploring its potential application in genomics to improve personalised health."

The formation of any strategic alliance will require the companies to complete their due diligence processes, enter into formal agreements, and secure shareholder approval, Genetic Technologies said, adding that "there is no guarantee that any transaction will be concluded."