Warnex (WNX) Share Price

Sounds good but I'm not seeing much activity on the boards, is this legit?

Quarter Highlighted by Significant Revenue Growth and
Increased Genevision(TM) Activity -

LAVAL, QC, Aug. 12 /CNW/ - Warnex Inc. (TSX: WNX) today announced financial results for the second quarter ended June 30, 2004.

Selected Highlights


- Closed private placement and convertible debenture issue for gross
proceeds of $11.8 million;
- Completed acquisition of Adaltis Clinical Laboratory business;
- Signed Genevision contracts with three major U.S.-based food
manufacturers;
- Received AOAC Performance Tested(SM) validation for Genevision tests
for E. coli O157 and E. coli O157:H7 and subsequent to the quarter
received AOAC validation for Listeria monocytogenes and Listeria
species
- Signed U.K. marketing and distribution agreement for Genevision with
Don Whitley Scientific Limited.

Consolidated revenue for the second quarter ended June 30, 2004, was $2.6 million, more than double the consolidated revenue of $1.2 million in the corresponding quarter in 2003. On a six-month basis, revenue totalled $4.8 million compared with $3.0 million over the same period a year ago. Warnex's net loss of $1.6 million or $0.04 per share in the period was similar to the net loss of the corresponding three-month period a year earlier. For the six-month period, net loss increased from $2.8 million or $0.06 per share in 2003 to $3.2 million or $0.07 per share in 2004.

"The second quarter saw accelerated levels of activity for Warnex as we continued to add new customers, build marketing and distribution relationships and secure regulatory validations for the Genevision platform," said Mark Busgang, President and CEO of Warnex. "Coupled with the acquisition of Adaltis' Clinical Laboratory business and the completion of two financings, the Company is now well positioned to generate significant growth in the quarters ahead."

Operating Highlights

During the second quarter, Warnex significantly strengthened its balance sheet raising $5 million from a private placement and $6.8 million from the issuance of non secured convertible debentures for total gross proceeds of $11.8 million. A portion of these funds was used for the acquisition of the Clinical Laboratory division of Adaltis Inc. The purchase price of $3.2 million was paid with a combination of $2.4 million in cash and 655,738 common shares of Warnex, valued at $800,000. Among the acquired laboratory assets, Warnex obtained the exclusive license to Prenatest(R), a prenatal screening test with an annual revenue run rate in excess of $2.6 million, representing approximately 14,000 tests. The acquisition is a complementary fit with Warnex's existing service groups, expanding the range of services offered with the introduction of human clinical testing.

Over the last few months, the Company made continued progress with the commercial rollout of the Genevision platform, signing several major U.S. food manufacturers as Genevision customers. Carolina Turkeys, owners of the world's largest turkey processing plant, Gold Kist Inc., the third largest chicken producer in the U.S., and West Liberty Foods, a leading manufacturer of ready-to-eat meats and a major supplier to corporations such as Subway(R), Denny's(R), and Wal-Mart(R) will use our technology to test for the presence of Salmonella and Listeria in their products. Warnex also expanded its international marketing and distribution relationships for the Genevision technology by signing up Don Whitley Scientific Limited as its exclusive U.K. distributor. DWS is a leader in the development, production and distribution of instrumentation and associated products for microbiological applications.

In addition, the Company received its first U.S. validations for Genevision tests. Warnex's tests for the detection of E. coli O157 and E. coli O157:H7 have been granted Performance Tested(SM) status by the AOAC Research Institute, a non-profit international scientific organization that validates laboratory testing methods. Subsequent to quarter-end, the Company received AOAC validation for food safety tests for the detection of Listeria monocytogenes and Listeria species.

Finally, during the quarter, Warnex strengthened its R&D capabilities, signing a licensing agreement with IdentiGEN Ltd., based in Dublin, Ireland, to develop products incorporating IdentiGEN's proprietary know-how and Warnex's Genevision technology platform for the detection of genetically modified organisms (GMOs) and meat identification in food and feed products. In addition, the Company joined the Campden & Chorleywood Food Research Association (CCFRA), providing Warnex with access to the expertise of world- class food scientists. The CCFRA is the UK's largest independent organization carrying out research and development for the agri-food industry worldwide.

Additional Financial Review

Gross margin for the quarter was $1.0 million compared with ($8,314) in the same quarter of the previous year. For the six-month period, the gross margin increased to $1.7 million in 2004 from $466,872 in 2003. Selling, general and administrative (SG&A) expenses for the second quarter ended June 30, 2004, were $1.7 million versus $1.0 million in the corresponding quarter in 2003. For the first half of the year, SG&A expenses were $3.3 million compared with $2.0 million in 2003.

Research and development expenses in the quarter increased by 37% from $541,547 in the second quarter ended June 30, 2003, to $740,192 in the current quarter. R&D expenses continued to rise as the Company worked towards obtaining additional regulatory approvals in Canada and the U.S. for Genevision, while expanding its portfolio of markers and improving its detection platform.

As at June 30, 2004, the Company had working capital of approximately $12.0 million, including cash and cash equivalents totalling $11.9 million.

Conference Call Information

The Company will host a conference call on Friday, August 13 at 10:00 am EST. A live audio webcast of the conference call will be available through www.warnex.ca. A replay of the webcast will be available for 90 days at www.warnex.ca and at www.financialdisclosure.ca.

Genevision(TM) food safety tests -
Aug. 3 - Warnex Inc. (TSX: WNX), today announced that its Genevision(TM) food safety tests for the detection of Listeria monocytogenes and Listeria species have been granted Performance Tested(SM) status by the AOAC Research Institute, and become the third and fourth Genevision tests to be validated in the United States.

"AOAC validations are an important catalyst driving U.S. adoption as larger food producers require this recognition prior to converting their quality control systems," said Mark Busgang, President and CEO of Warnex. "We are currently pursuing AOAC validation for our Salmonella test and expect to receive it in the third quarter."

The AOAC Research Institute is a non-profit international scientific organization that administers the Performance Tested(SM) Methods Program. Within this program, a third-party review showed that the Genevision tests detected L. monocytogenes and Listeria spp. as well as or better than traditional culture methods. The L. monocytogenes test was granted Performance Tested(SM) status for a "Variety of Foods", which required the validation of the method with at least 10 different food matrices from five different food groups. The detection of Listeria spp. was validated for "Selected Foods", including sliced ham, ground pork, sausages, pre-cut lettuce, yogurt, raw beef, raw cod filet, green beans, and mayonnaise.

Warnex's Genevision tests use state-of-the-art genomics-based technology to rapidly and accurately detect the presence of harmful pathogens in food products. The technology allows for the simultaneous detection of multiple pathogens and processing of samples within 24 to 48 hours, a significant improvement over traditional microbiology tests that currently require 5 to 7 days.

Listeria infections, caused by eating contaminated food, affect primarily pregnant women, newborns, and persons with weakened immune systems. Symptoms include headache, fever, and nausea, but the infection may also result in miscarriage, stillbirth, blood infection, meningitis, and even death, if untreated. The bacterium is commonly transmitted through raw milk, unripened and other soft cheese, and undercooked meat and poultry. An estimated 2,500 cases and 500 deaths occur in the United States annually due to Listeria infections.

Most detection kits on the market test specifically for L. monocytogenes but not other Listeria species, which may also cause illness. Warnex provides tests that can detect specifically for L. monocytogenes or for the presence of any Listeria species.

July 12 - Warnex Inc. announced today that U.S.-based West Liberty Foods, L.L.C. ("West Liberty"), a major manufacturer of ready-to-eat meats, including turkey, beef, pork and chicken products, has signed on to use Warnex's Genevision(TM) Rapid Pathogen Detection system to monitor the safety of its products. Under the terms of the agreement, West Liberty will purchase Genevision equipment to test for the presence of Salmonella and Listeria.

"West Liberty Foods, as a leading food manufacturer and a major supplier to corporations such as Subway(R), Denny's(R), and Wal-Mart(R), understands the need for a rapid and precise food safety testing solution," said Mark Busgang, President and CEO of Warnex. "To have a sense of West Liberty's scale of operations, it supplies to the Subway(R) chain of restaurants alone more than one million pounds of meat products each week."

The state-of-the-art Genevision(TM) system uses Real-Time PCR technology to rapidly and accurately determine the presence of pathogens in a given food sample. The system allows for the simultaneous detection of multiple pathogens and processing of samples within 24 to 48 hours, a significant improvement over traditional microbiology tests that currently require 5 to 7 days. The Genevision system also includes the custom Sentinel(TM) software that analyzes the results and allows for immediate reporting throughout an organization.

"Assuring product safety is an integral part of the production process, and the Genevision technology provides us with an unprecedented opportunity to increase the safety of our products and dramatically decrease the time it takes to test for the presence of pathogens," said Dr. Charles Cook, Vice-President, Strategic Development, of West Liberty Foods. "The adoption of Genevision will enable us to move our safety testing in-house and provide us with significant operational efficiencies."

The current annual worldwide market to test for food-borne pathogens is estimated at $5 billion. With the recent U.S. regulatory validations of the Genevision tests by the AOAC Research Institute, Warnex is well positioned to expand its commercial penetration.

Warnex concludes acquisition of Adaltis Clinical Laboratory

LAVAL, QC, July 2 /CNW/ - Warnex Inc. (TSX: WNX) announced today that it has concluded its previously announced acquisition of the Clinical Laboratory division of Adaltis Inc. The purchase price is $3.0 million, which is divided into $2.2 million in cash and 655,738 common shares of Warnex. The common shares included in the purchase price are subject to a statutory hold period of 4 months from the date of issue. An additional amount of $200,000 has been remitted to Adaltis to cover the compensation to employees who have not been retained by Adaltis.

Among the acquired laboratory assets, Warnex is obtaining the exclusive license of the Prenatest(R), a 1st and 2nd trimester prenatal screening test that enables pregnant women to find out if they are at a risk of carrying a fetus that may be affected by one of the most common birth anomalies: Trisomy 21 (Down syndrome), Trisomy 18, and other anomalies relating to the closure of the neural tube. The Prenatest(R) has an annual revenue run rate in excess of $2.6 million, representing approximately 14,000 tests.

"This acquisition is an excellent complementary fit with our service groups, expanding our range of services and representing our first foray into human clinical testing," said Mark Busgang, President and CEO of Warnex. "This significant addition to our clinical and contract research capabilities will accelerate our growth rates in the service side of our business."

"The genetic testing market is the fastest growth area in clinical diagnostics, and an area that we have a strong core competency in as a result of our work in developing and commercializing the Genevision(TM) system," added Mark Busgang. "We intend to add resources to aggressively market our clinical services and build market share."

Furthermore, Warnex and Adaltis have entered into a Research and Collaboration Agreement pursuant to which Warnex and Adaltis will co-develop additional human clinical tests to be commercialized by both companies.

Adaltis is a well-established in vitro diagnostics company with an extensive product portfolio and presence in multiple markets. Adaltis' shareholder base includes Picchio Pharma Inc., a joint venture holding company held by Dr. Francesco Bellini, Chairman and CEO of Neurochem Inc., and Power Corporation of Canada, and CITIC Pacific, a member of the CITIC group of companies.

About Warnex

Warnex (www.warnex.ca) is a publicly traded (TSX: WNX) Canadian biotechnology company devoted to protecting public health by providing advanced quality control products and services to the pharmaceutical, agri-food, and environmental sectors. Warnex's -based Genevision(TM) technology offers a versatile DNA detection platform that produces results genomics rapidly and accurately using Real-Time PCR technology, combined with unique genetic markers and software. Applications range from pathogen detection in foods and GMO testing to farm-to-fork traceability using Molecular Bar Codes. The Genevision development pipeline includes applications in the detection of viruses, allergens, toxins, yeasts, and fungi, as well as meat speciation and bioterrorism. Warnex's profitable and growing analytical and bioanalytical service groups offer a variety of quality control services, method development and validation, and contract R&D, as well as bioavailability and bioequivalence studies for clinical trials.

The symbol is WNX not WNT. How do we get that changed?