Genetic Technologies Ltd. said it is exploring the application of blockchain technology in the healthcare sector.
The decision follows an assessment of the company's BREVAGenplus test to diagnose the risk of inherited breast cancer. The Australia-based molecular diagnostics company, which has incurred "significant losses" to commercialize the test, said BREVAGenplus is unlikely to lead to a material increase in Genetic Technologies' fundamental value.
Instead, the company will explore potential medical and biotech blockchain applications under an early-stage agreement with privately-held Blockchain Global Ltd. which is commercializing the digital data ledger technology.
Under the proposed alliance, Genetic Technologies would issue 486 million fully paid ordinary shares — representing 15% of its issued share capital — to Blockchain Global based on the achievement of certain milestones.
"Blockchain is a trusted digital ledger that provides a secure low cost and fast way to gather and disseminate information and we look forward to exploring its potential application in genomics to improve personalized health," Genetic Technologies' newly elected chairman, Paul Kasian, said in a statement.
In separate news, Genetic Technologies is looking to raise funds for working capital. The company has engaged Lodge Corporate Pty Ltd. to assist in a proposed placement of 324.7 million shares at 1.4 Australian cents each.