Genetic Technologies Limited (ASX:GTG) Sells Affinity and EasyDNA Businesses
Sale Completion
Genetic Technologies Limited (Administrators Appointed) (ASX:GTG) has completed the sale of its AffinityDNA and EasyDNA businesses to Endeavor DNA, Inc. The sale agreement was finalised on 18 January 2025. This strategic decision follows the company’s appointment of voluntary administrators on 20 November 2024.
Transaction Details
Endeavor DNA, Inc. purchased the businesses for approximately $525,000 (plus GST). This amount includes the transfer of statutory employee entitlements for employees in Australia. The sale encompasses all rights, title, and interest related to certain assets, intellectual property, and operational agreements linked to the businesses.
Additionally, Endeavor has the option to acquire two subsidiaries that employ staff involved in the businesses, which must be exercised within four weeks of the sale completion.
Administrative Considerations
The total creditor claims are anticipated to exceed the available funds and potential asset recoveries, leading to a shortfall for unsecured creditors. The next creditor meeting is set for 26 February 2025, where the company’s future, including possible liquidation or a Deed of Company Arrangement, will be determined.
Market Information
The Company’s American Depository Shares (ADSs) have recently been delisted from Nasdaq. Simultaneously, GTG shares on the ASX remain in suspension, limiting trading activity as the company navigates through its ongoing administration.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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