MELBOURNE, AUSTRALIA: Genetic Technologies Limited (GTG) has entered into an agreement to acquire the direct-to-consumer eCommerce business and distribution rights associated with General Genetics Corporation and its associated brands trading as EasyDNA from Belhealth Investment Fund LP for $4 million.

Highlights:

•Strategically, this Direct-to-Consumer acquisition provides Genetic Technologies the foundation to grow its portfolio of serious disease tests across well-established websites in 40 countries

•In CY20 EasyDNA had total unaudited revenue of US$4.63 million through retail sales of its at-home DNA tests via its online sales

•EasyDNA currently sells paternity, oncology and health and wellbeing genomics-based laboratory tests with agreements with 12 laboratories in North America, AsiaPac and Europe

•Under the terms of the agreement, GTG will acquire all of Belhealth’s websites, brand identities, laboratory testing and distribution agreements associated with their EasyDNA business for US$4 million comprising of US$2 million in cash on completion, US$1.5 million paid in GTG ADRs and US$500k in cash to be held in escrow payable to BelHealth on the first anniversary of closing following conditions precedent being satisfied

•EasyDNA revenue has grown by 11% in the last two years and GTG will target opportunities for further growth GTG advises it has entered into an agreement to acquire the brand and distribution rights for EasyDNA from Belhealth.

The EasyDNA Acquisition will provide GTG the platform to build its direct-to-consumer offerings and Lifestyle Division. This acquisition provides an established revenue stream with US$4.63 million in unaudited revenue for CY20 and a stable outlook for future growth and the ability to leverage existing direct-to-consumer marketing avenues for future product sales.

Revenue is received from the sale of test kits to customers via the 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.

Simon Morriss, Chief Executive Officer of GTG said, “We are excited to announce the acquisition of EasyDNA. The strong alignment of this brand and platform with GTG’s planned expansion into lifestyle testing was critical to our decision to acquire the business of EasyDNA.

“Additionally, we look forward to integrating the EasyDNA team into our business and working closely with them to continue to build the existing product portfolio and brand recognition they have already achieved.”

The agreement provides for the acquisition of all brands, websites and reseller agreements associated with EasyDNA. This includes over 70 websites in 40 countries and six brand identities. EasyDNA 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.

Additionally, GTG will be onboarding the existing team, retaining the skills and expertise of EasyDNA’s employees based in Malta and Australia. This includes the retention of Kevin Camilleri, founder and CEO of EasyDNA, who will be heading up GTG’s Direct to Consumer Division following the completion of the acquisition.

Except for this, no changes will be made to the GTG board and key management personnel. The acquisition will initially form the majority of this business segment and provides GTG with the required sales and marketing experience to drive forward with the current products and any potential future products to be introduced.

GTG will continue to assess further acquisition targets with a focus on assets that enhance its core platform offerings; extend its product offering; open access to new customers; and expand its position in key geographic markets.

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19 Jul, 3:37 pm GMT+10 ·Disclaimer