Genetic Technologies Limited (ASX: GTG; NASDAQ: GENE, “Company”, “GENE”), a global leader in Genomics based tests in health, wellness and serious disease, is pleased to announce the completion of its acquisition of EasyDNA (‘the acquisition’) for US$4 million in cash and stock on August 13, 2021.
MELBOURNE, Australia, Aug. 16, 2021 (GLOBE NEWSWIRE) -- Genetic Technologies Limited (ASX: GTG; NASDAQ: GENE, “Company”, “GENE”), a global leader in Genomics based tests in health, wellness and serious disease, is pleased to announce the completion of its acquisition of EasyDNA (‘the acquisition’) for US$4 million in cash and stock on August 13, 2021.
Overview
- BelHealth becomes a shareholder of Genetic Technologies with 2.3% holding following completion of EasyDNA acquisition
- Provides for global expansion into genomics based “Health and Wellness” in 40 countries and a significant platform for the sale and expansion of existing and future products
- EasyDNA currently sells paternity, oncology and health & wellness genomics-based laboratory tests through agreements with 12 laboratories in North America, AsiaPac and Europe
- Acquisition to have immediate positive impact on Genetic Technologies’ revenues and bottom line
- Fully funded via cash payment of US$2.5 million and US$1.5 million of shares issued at $4.29 per ADR with a 24-month cash reserve post completion
- Share based payment escrowed for six months demonstrating aligned interests
Simon Morriss, Chief Executive Officer of GENE, said, “Having completed the acquisition of EasyDNA we are now focused on integrating the team and embedding the product and platform into our existing structure. The strong alignment of this brand and platform with GENE’s planned expansion into “health and wellness” testing was critical to our decision to acquire the business of EasyDNA and will deliver solid revenue growth and expansion in the future.”
“This acquisition gives GENE the platform to immediately access the consumer genomics market in 40 countries with an estimated value of USD$2.4billion,” added Morriss. “This market is forecast to continue on a trajectory of 19.4% CAGR, reaching USD$8.1billion by 2028. This market covers Ancestry, Genetic Relatedness, Diagnostics Lifestyle, Reproductive Health, Personalized Medicine & Pharmacogenetic testing and more, in regions including North American, Europe, and Asia Pacific where EasyDNA has presence.”
Commenting on the completion of the acquisition and becoming a shareholder in Genetic Technologies, Inder Tallur, Managing Partner, BelHealth Investment Partners, said, “Genetic Technologies’ products were a natural fit for EasyDNA’s platform and product portfolio. The acquisition provides a significant opportunity to further scale the EasyDNA platform in combination with Genetic Technologies existing and future products, and we look forward to being part of this next stage of growth. We look forward to working with the team as we complete the integration process and see a very bright future within the genomics space.”
Genetic Technologies’ acquisition of EasyDNA provides an established revenue stream with US$4.63 million in unaudited revenue for CY20. EasyDNA, which has delivered revenue growth of 11% over the last two years, has a stable outlook for future growth and the ability to leverage existing direct-to-consumer marketing avenues for future product sales. The acquisition includes all brands, websites and reseller agreements associated with EasyDNA. This includes over 70 websites in 40 countries and six brand identities. Acquisition revenue contributions are strongly weighted to five countries: Australia, UK, France, Canada and the USA, where it received 68% of its CY20 revenue, with the UK as the largest market contributing 20% of total revenue. EasyDNA has current agreements with 12 NATA and associated international certified laboratories.
EasyDNA generates revenue from the sale of test kits to customers via its network of websites. Tests are typically performed via an oral swab sent directly to the customer from external laboratory partners. The laboratory processes the tests and transmits the results to EasyDNA, with test results communicated to customers by email.
GENE acquired 100% of EasyDNA’s brands and assets for a purchase price comprising upfront consideration of US$2 million plus US$1.5 million in GENE ADRs equating to 348,939 ADRs at a 30-Day Volume Weighted Average Price on the NASDAQ of $4.29 (‘Consideration ADRs’) as at July 16, 2021. The issue of new ordinary shares underlying the Consideration ADRs represented 2.3% of GENE’s issued share capital and was issued under GENE’s Listing Rule 7.1 capacity. An additional US$500k cash consideration is held in escrow for up to 12 months and payable subject to the completion of conditions precedent1. The total cash consideration of US$2.5 million was funded from GENE’s existing cash reserves. The Consideration ADRs are subject to a lock-up agreement whereby BelHealth will not be able to trade in GENE securities for six months after completion.
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1 Conditions precedent incorporate receipt of all standard documentation and statements of consent from all parties, no material change to the business or financial situation, no breach of warranty; receipt of all employment contracts; confirmation of signing all agreed contracts and confirmation of no legal proceedings.
| Investor Relations (AUS) Stephanie Ottens Market Eye M: +61 434 405 400 E: stephanie.ottens@marketeye.com.au | Investor Relations and Media (US) Dave Gentry 1 800 RED CHIP (733 2447) Cell: 407 491 4498 E: dave@redchip.com |
About Genetic Technologies Limited
Genetic Technologies Limited (ASX: GTG; Nasdaq: GENE) is a diversified molecular diagnostics company. GTG offers cancer predictive testing and assessment tools to help physicians proactively manage patient health. The Company’s lead products GeneType for Breast Cancer for non-hereditary breast cancer and GeneType for Colorectal Cancer are clinically validated risk assessment tests and are first in class. Genetic Technologies is developing a pipeline of risk assessment products.
For more information, please visit www.gtglabs.com
About EasyDNA
EasyDNA was established in 2007 in Malta and 2008 in Australia developing an online network of over 70 websites in over 40 countries. EasyDNA’s network of online retail sales platforms offers fast and affordable home DNA testing that is reliable and confidential. They also offer a number of lifestyle and health and wellbeing tests, and animal testing relating to allergies and tolerances.
For more information, please visit www.easydna.com
About BelHealth Investment Fund LP
BelHealth Investment Partners is a healthcare private equity firm focused on lower middle market companies with a unique combination of investing, executive management and entrepreneurial experience. BelHealth acquires majority positions in entrepreneur-owned companies that it believes would benefit from its extensive operating and private equity investment expertise. BelHealth partners with executives and provides growth and expansion expertise both organically and through add-on acquisitions, capital to fund its investment strategy, and domain knowledge in targeted healthcare sectors.
Forward-Looking Statements
This press release may contain forward-looking statements about the Company’s expectations, beliefs or intentions regarding, among other things, statements regarding the expected use of proceeds. In addition, from time to time, the Company or its representatives have made or may make forward-looking statements, orally or in writing. Forward-looking statements can be identified by the use of forward-looking words such as “believe,” “expect,” “intend,” “plan,” “may,” “should” or “anticipate” or their negatives or other variations of these words or other comparable words or by the fact that these statements do not relate strictly to historical or current matters. These forward-looking statements may be included in, but are not limited to, various filings made by the Company with the U.S. Securities and Exchange Commission, press releases or oral statements made by or with the approval of one of the Company’s authorized executive officers. Forward-looking statements relate to anticipated or expected events, activities, trends or results as of the date they are made. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties that could cause the Company’s actual results to differ materially from any future results expressed or implied by the forward-looking statements. Many factors could cause the Company’s actual activities or results to differ materially from the activities and results anticipated in such forward-looking statements as detailed in the Company’s filings with the Securities and Exchange Commission and in its periodic filings in Australia and the risks and risk factors included therein. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond its control. The Company does not undertake any obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
