Genetic Technologies (ASX:GTG) - Voluntary Administration

Genetic Technologies (ASX:GTG), a Victoria-based genetic testing and biotechnology company, entered voluntary administration on 20 November.

The company was incorporated in 1987 and initially operated as a mining entity.

In 2000, after acquiring Swiss company GeneType AG, Genetic Technologies transitioned from mining to genetic testing and biology.

The company restructured its focus again in 2009, shifting to developing a portfolio of tests aimed at assisting medical clinicians in cancer management. It then expanded its operations, making a few strategic acquisitions (in 2010, 2021 and 2020) to assist with its new strategy.

Unfortunately, Genetic Technologies struggled to raise the necessary working capital to support its trading losses as it continued to develop and refine its products. To address these issues, the company undertook a restructure in mid-2024, reducing headcount and costs by outsourcing laboratory testing.

In late July 2024, the company undertook a capital raise, but was unsuccessful in raising the funds required to address its working capital constraints. Directors then resolved to put the company into administration.

Administrators Paul Harlond and Ross Blakeley of FTI Consulting have released their report to creditors and are recommending that the second meeting be postponed till after the holiday season to allow the sale and recapitalisation process to continue.