GeneNews Acquires Full Control of Innovative Diagnostic Laboratory

GeneNews Limited (TSX:GEN) announced that it has entered into a Unit Purchase Agreement with Cobalt Healthcare Consultants, Inc.,  pursuant to which GeneNews’ wholly-owned subsidiary, GeneNews (USA), Inc., will acquire Cobalt’s 50% ownership interest in the Innovative Diagnostic Laboratory, LLP joint-venture. Once concluded, GeneNews will have full ownership of IDL.
According to the news:

Under terms of the Purchasing Agreement, GeneNews will assume any and all of Cobalt’s liability relating to Cobalt’s $US 1 million Secured Demand Promissory Note (the “Note”) payable to former IDL partner, HDL USA Holdings, LLC. No other consideration will be paid. Additionally, GeneNews has asked for and received a one year extension on the term of the Note, making it due in May 2017. The Purchasing Agreement is subject to GeneNews completing a strategic financing during March 2016.

GeneNews’ Executive Chairman, James Howard-Tripp commented:

In recent months, we have taken a number of important steps to get the Company on a more solid footing to support an orderly restructuring of its operations. With a number of difficult decisions behind us, and this Purchasing Agreement in place, we are now much better prepared to pursue the working capital we need to restore IDL’s corporate viability and re-establish its growth trajectory.

Click here to view the press release.