GTG Completes Sale of AffinityDNA and EasyDNA Businesses to Endeavor DNA Inc

Key Highlights

• Deal Completion: The sale of AffinityDNA and EasyDNA was finalized on 18 January 2025.
• Buyer: Endeavor DNA, Inc. completed the acquisition following a competitive process.
• Purchase Price: $525,000 plus GST, with the assumption of certain employee entitlements.
• Employee Transfer: Two employees will join Endeavor, continuing their roles within the business.
• Option for Subsidiary Purchase: Endeavor has the option to purchase two subsidiaries involved in the businesses within four weeks.

Genetic Technologies Limited (Administrators Appointed) (ASX: GTG) has officially completed the sale of its AffinityDNA and EasyDNA businesses to Endeavor DNA, Inc. The transaction marks the conclusion of a highly competitive sales process, with Endeavor emerging as the preferred buyer.

The deal, signed on 15 January 2025, was finalized on 18 January 2025, marking a pivotal moment in the company’s restructuring efforts. Genetic Technologies (ASX:GTG), which entered voluntary administration on 20 November 2024, has seen its DNA testing business move forward under new ownership.

Key Transaction Details

The sale was valued at $525,000, plus GST. This price includes the intellectual property tied to both the AffinityDNA and EasyDNA brands, along with laboratory and reseller agreements. Furthermore, Genetic Technologies’ (ASX:GTG) proprietary CRM system will transfer to Endeavor DNA as part of the deal.

As part of the transition, two Australian employees will move with the businesses to Endeavor, continuing their roles within the organization. The sale also involves an option agreement for Endeavor to purchase two subsidiaries of Genetic Technologies (ASX:GTG). This option, exercisable within four weeks post-completion, allows Endeavor to absorb employee entitlements, including leave.

Strategic Importance of the Sale for GTG

The decision to divest the AffinityDNA and EasyDNA businesses was a critical part of Genetic Technologies' (ASX: GTG) restructuring plan. By selling these operations to Endeavor DNA Inc., Genetic Technologies (ASX:GTG) has taken a significant step towards stabilizing its financial position, reducing its liabilities, and refocusing on its core business activities. The sale also marks the completion of a competitive process, ensuring that Genetic Technologies (ASX:GTG) received a fair price for the businesses.

This transaction allows Genetic Technologies (ASX: GTG) to streamline its operations and concentrate on its primary areas of expertise, positioning the company for future growth. As part of the broader restructuring strategy, Genetic Technologies (ASX:GTG) continues to work closely with its administrators to ensure the best possible outcome for shareholders and stakeholders alike.

The successful completion of this sale, combined with the ongoing restructuring, underscores Genetic Technologies’ (ASX:GTG) commitment to creating long-term value for its stakeholders, while ensuring that the AffinityDNA and EasyDNA brands remain in capable hands under Endeavor DNA's leadership.

What’s Next for Endeavor DNA

For Endeavor DNA, this acquisition represents a significant step forward in the company’s expansion plans. By bringing AffinityDNA and EasyDNA under its wing, Endeavor DNA is poised to broaden its DNA testing portfolio and enhance its customer offerings. The companies' established customer base and expertise in direct-to-consumer genetic testing will enable Endeavor DNA to strengthen its position in the competitive market.

Endeavor DNA’s focus will be on leveraging the strengths of the AffinityDNA and EasyDNA brands, which are already known for their high-quality genetic testing services. The transition process is expected to be seamless, with Endeavor DNA committed to maintaining the level of service that customers have come to expect from these brands.

Looking ahead, Endeavor DNA plans to introduce new products and services, expand into additional markets, and further innovate in the genetic testing space. The acquisition of these businesses is just the beginning of Endeavor DNA's strategic plans to grow its presence both locally and internationally, providing more customers with access to cutting-edge DNA testing solutions.

Endeavor DNA's Plans Moving Forward

With the acquisition now complete, Endeavor DNA is set to drive the continued growth of the AffinityDNA and EasyDNA businesses. The team at Endeavor DNA is focused on providing comprehensive DNA testing services and expanding the reach of these brands globally.

This sale marks the next chapter for Genetic Technologies (ASX:GTG), as it continues its efforts under administration to secure its financial future. The completion of the sale not only helps Genetic Technologies (ASX:GTG) settle its ongoing restructuring but also ensures the longevity and development of the AffinityDNA and EasyDNA services under new leadership.