Genetic Technologies Reports $1M Cash, $625K Asset Sale Amid Administration

Voluntary Administration and Strategic Shift

Genetic Technologies Limited (ASX, GTG) entered voluntary administration on 20 November 2024 after failing to secure a minimum $2 million capital raise and strategic partnerships necessary for its restructure. The company had aimed to focus on growth in the US market through sales expansion and distribution agreements but was unable to attract sufficient investor support despite board members providing short-term funding and deferring fees.

The appointment of joint voluntary administrators from FTI Consulting marked a turning point, with the administrators maintaining business operations while exploring options to sell or recapitalise the company’s assets and intellectual property.

Asset Sale and Nasdaq Delisting

In a significant development, Genetic Technologies completed the sale of its geneType business and related assets to Rhythm Biosciences Limited on 23 December 2025 for $625,000 plus GST. This transaction included intellectual property rights, US office lease, research assets, and customer contracts, with eight employees transitioning to Rhythm. The sale relieved some creditor obligations and employee entitlements, providing a partial financial lifeline.

Meanwhile, the company’s securities were delisted from Nasdaq effective 17 December 2024 following the administration appointment, reflecting the regulatory consequences of its financial distress.

Financial Position and Cash Flow

At the end of December 2024, Genetic Technologies held $1.01 million in cash and equivalents, down from $1.62 million the previous quarter. The quarter saw net cash outflows of $0.61 million, driven primarily by operating expenses and financing costs, partially offset by proceeds from the asset sale. The company’s financial records during administration were incomplete, complicating a full assessment of its financial health.

Path Forward Under New Leadership

Following the retirement of the administrators in May 2025, new directors took control and have been actively pursuing opportunities to revive the company. This includes binding term sheets to acquire two companies linked to Executive Chairman Michael Walker, who holds an 87.1% stake. These acquisitions, alongside a planned capital raise, aim to re-establish compliance with ASX listing rules and restore shareholder value.

Despite ongoing suspension of trading on the ASX, the company expresses confidence in its ability to continue operations and meet business objectives through these strategic moves.