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Vancouver, British Columbia – April 27, 2023 – GeneTether Therapeutics Inc., (together with its wholly-owned subsidiary GeneTether, Inc., “GeneTether” or the “Company”) (CSE: GTTX), an early-stage genetic medicine company focused on developing its disruptive proprietary platform technology to significantly increase the efficiency of DNA insertion into the genome, announced today the filing of its audited financial statements for the fiscal year ending December 31, 2022 and reported on corporate highlights from 2022. All dollar amounts are presented in the United States dollar, unless otherwise noted. Complete financial statements along with related management and discussion and analysis can be found in the System for Electronic Document Analysis and Retrieval, the electronic filing system for the disclosure documents of issuers across Canada, at www.SEDAR.com.
Commenting on the Company’s progress, CEO Roland Boivin said, “as previously announced, given the persistent weakness in the global capital markets, we have recently decided to significantly reduce the development of our GeneTether™ platform technology and conduct a review of strategic alternatives focused on maximizing shareholder value. Our disciplined approach to conserving cash and optimizing our cash runway position will serve us well as we embark on this crucial phase. Despite that, we have been able to make important progress that we believe will provide strategic advantages as we continue to explore our options. Finally, I would like to reiterate that our current cash position, which stood at $1,796,000 as of December 31, 2022 and our minimal cash burn rate, allow us the flexibility to explore investments in new technologies or add value to our GeneTether™ platform to increase the potential for M&A or collaboration opportunities.”
R&D and Intellectual Property
Despite the challenging global markets conditions in 2022, GeneTether achieved R&D progress of its proprietary GeneTether™ platform:
- In March 2023, the Company announced the results of a series of experiments conducted by a highly specialized contract research organization that confirmed the efficacy of its GeneTether technology in binding Lacl-Cas9 fusion proteins to template DNA. This validation specifically highlights the high level of template binding efficiency of the GeneTether™ platform, which is a crucial component of the Company’s strategy to enhance gene editing efficiency. Further, cell-based experiments, conducted internally, as well as by third parties, confirmed that a GeneTether LacI-Cas9 fusion protein retains the ability to recognize and cut DNA when compared to unmodified Cas9. These studies were performed using several cell types and gene targets.
- In October 2022, the Company announced pivoting R&D efforts towards advancing its in-house programs versus outsourcing most activities, which would allow the Company to preserve cash and exert greater control over experimental designs and development protocols. Subsequently in February 2023, the Company announced the decision to scale back development of the GeneTether™ platform technology and explore strategic alternatives that will optimize shareholder value. This decision has been mainly driven by the current state of the global capital markets, which are experiencing persistent weakness.
- On May 24, 2022, the United States Patent and Trademark Office granted patent #11,339,385 entitled “Modified Nucleic Acid Editing Systems for Tethering Donor DNA” related to its GeneTether platform technology. The claims cover a composition of matter for tethering a donor DNA template to a fusion protein of a nuclease and the lac repressor DNA binding domain, in particular the donor DNA includes the lac operator sequence. The patent term is scheduled to expire on July 14, 2040.
- On May 11, 2022, a research paper co-authored by the Company’s co-founder, Geoffrey Sargent, Ph.D. and titled “Seamless Gene Correction in the Human Cystic Fibrosis Transmembrane Conductance Regulator Locus by Vector Replacement and Vector Insertion Events,” was published in the peer-reviewed journal “Frontiers in Genome Editing.” This publication describes novel HDR products and the subsequent derivation of seamless gene correction of the W1282X CFTR mutation in human induced pluripotent stem cells.
Completion of Initial Public Offering and Concurrent Private Placement (“the Offering”)
On March 29, 2022, the Company announced that it closed its Offering of Units at a price of C$0.60 per Unit for aggregate gross proceeds of C$4,500,000. Each Unit consists of one Common Share, and one Common Share purchase warrant (“Warrant”). Each Warrant entitles the holder to acquire an additional Common Share at an exercise price of C$0.72 until March 29, 2025. Including the compensation to the agent in connection with the Offering, the total estimated cash share issuance cost in connection with the Offering was approximately $600,000 (C$751,000).
The Company’s total assets as at December 31, 2022 were approximately $1,944,000, including approximately $1,796,000 in cash. Net and comprehensive loss for the twelve months ended December 31, 2022 were approximately $1,715,000 and 1,916,000, respectively.
Founded by EGB Ventures founder and managing partner, William J. Garner, M.D., and veteran gene editing researcher, R. Geoffrey Sargent, Ph.D., GeneTether is focused on developing its disruptive proprietary platform technology to significantly increase the efficiency of DNA insertion into the genome for gene correction and complementation strategies. The Company’s wholly-owned platform technology uses a proprietary method to “tether” donor DNA templates to the genome editing complex, making the template readily available for use during the genome editing repair stage. The Company is leveraging its platform technology to develop curative therapies for the treatment of rare genetic diseases. GeneTether’s proof of concept study demonstrated an approximately 7x higher gene editing efficiency as compared to the same gene editing payload without application of GeneTether’s technology.
For more information, visit www.genetether.com.
Roland Boivin, CEO
(833) 294-4363 ext. 1
Jean Jen, CFO and Corporate Secretary
(833) 294-4363 ext. 2
This news release contains statements that constitute “forward-looking statements.” Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause GeneTether’s actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential” and similar expressions, or that events or conditions “will,” “would,” “may,” “could” or “should” occur.
Forward-looking statements in this document include the expectation that the Company will significantly advance its research and development plan, the expectation that the Company will develop collaboration opportunities with other genetic medicines companies or develop M&A opportunities, and all other statements that are not statements of historical fact.
Although GeneTether believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by their nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors, which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with the global COVID-19 pandemic; general economic conditions; adverse industry events; future legislative and regulatory developments; the Company’s ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; the ability of GeneTether to implement its business strategies; competition; the ability of GeneTether to obtain and retain all applicable regulatory approvals and other assumptions, risks and uncertainties, including those set forth under the heading “Risk Factors” in the Company’s final prospectus dated March 21, 2022.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
The Canadian Securities Exchange nor its Regulation Service has approved nor disapproved the contents of this news release.