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Acquisition of global direct to consumer ecommerce businessMELBOURNE, Australia, May 16, 2022 (GLOBE NEWSWIRE) -- Genetic Technologies Limited (ASX: GTG; NASDAQ: GENE, “Company”, “GENE”), a global leader in genomics-based tests in health, wellness and serious disease advises that it has entered into an agreement to acquire the direct-to-consumer eCommerce business and distribution rights associated with AffinityDNA. Acquisition Highlights
GENE announces that it has entered into an agreement to acquire the brand and distribution rights of AffinityDNA for £555,000 (c.US$683,000). The acquisition of AffinityDNA will provide GENE with an additional and complementary platform to further build our existing direct-to-consumer offerings and lifestyle division. This marks the second acquisition for GENE within the past 12 months as part of its planned expansion into the direct-to-consumer market. In July 2021, the Company acquired EasyDNA, giving it access to all its associated brands, websites and reseller agreements which includes over 70 websites in 40 countries and six brand identities. The acquisition f AffinityDNA will provide an incremental established revenue base for GENE’s future growth and the ability to leverage existing direct-to-consumer marketing avenues for future product sales initiatives. AffinityDNA revenue is derived from the sale of test kits to customers via a network of websites, including Amazon, for selected DNA tests. Tests are performed via an oral swab sent directly to the customer from external laboratory partners. The laboratory processes the tests and transmits the results to AffinityDNA, with test results communicated to customers by email. Simon Morriss, Chief Executive Officer said, “This acquisition is an excellent strategic fit, supporting the ongoing expansion of our testing across our target markets worldwide. We are looking forward to working closely with the AffinityDNA team to capitalise on our commercial synergies.” GENE will be onboarding the existing team, retaining the skills and expertise of AffinityDNA’s employees based in its head office in the UK. This includes the retention of key management in a consulting role. No changes will be made to the GENE board and key management personnel. Under the terms of the agreement, GENE will acquire 100% of AffinityDNA’s brands and assets for a purchase price of £555,000 (c. US$683,000) with 50% upfront payment on completion and, subject to the business achieving certain financial performance parameters, 50% on the anniversary of completion. The purchase price consideration will be funded from GENE’s existing cash reserves. The transaction is subject to satisfying customary closing conditions. It is anticipated that these conditions will be met on or before May 31, 2022. About Genetic Technologies Limited About AffinityDNA
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