<article>Struggling furniture maker <a href="http://www.lorenzo-international.com/" target="_blank">Lorenzo International</a> plans to diversify into the genetics space by acquiring the Asia-wide rights to<a href="http://www.admdiag.com/" target="_blank"> GeneID</a>, a certified molecular laboratory, which specialises in DNA sequencing for molecular diagnostics and onco-genetic testing.</article>

Struggling furniture maker <a href="http://www.lorenzo-international.com/" target="_blank">Lorenzo International</a> plans to diversify into the genetics space by acquiring the Asia-wide rights to<a href="http://www.admdiag.com/" target="_blank"> GeneID</a>, a certified molecular laboratory, which specialises in DNA sequencing for molecular diagnostics and onco-genetic testing.
Lorenzo  plans to set up a S$124 million ($99.1 million) joint venture company with GeneID – the furniture maker will have 20 per cent stake in this JV.
GeneID will contribute laboratory services and an imaging center located in Singapore with an indicative valuation of approximately S$100 million.  Lorenzo will pay up to S$24 million for their  20 per cent share.
Gene ID provides services such as next generation gene sequencing of DNA, from the tumour cells, using microchip technology; helping to identify genetic predispositions to many forms of cancer, recommending treatments and assisting with the customisation of drug therapies after cancer has been diagnosed.
In October, Lorenzo had announced that <a href="http://www.jecapitalfund.com" target="_blank">JE Capital</a> had agreed to provide funding of S$100 million for it to diversify into new businesses.
Lorenzo has also announced that it will fund its share of the JV with Gene ID through a rights issue and warrants sale.  It will garner about S$9.1 million by selling 129.9 million rights shares at seven cents per share  &#8211; one rights share for every two ordinary shares held.
Assuming full subscription of the Rights Shares, the estimated net proceeds will be approximately S$8.7 million.
It will also issue up to 389.9 million bonus warrants, each entitling the holder to subscribe for a new share at 12 cents per share.
For every bonus warrant that has been exercised, it will issue a free company warrant, also known as piggyback warrant. Put simply, it will give another 389.9 million free warrants will be given to shareholders, when they exercise the bonus warrants and these piggyback warrants can be converted to shares at an exercise price of 17 cents. If fully exercised, the net proceeds from the exercise of the warrants will be approximately S$112.30 million.
Lorenzo closed flat at 94 cents on December 30.

Lorenzo sets up $99m JV with GeneID

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Lorenzo sets up $99m JV with GeneID

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