An announcement regarding progressive provision of up to $1million by a Japan based investment fund was made by Biotech Company Genesis Research (GEN). The aim of the investment worth 1million is to establish a new subsidiary to help develop its gene silencing technology.

The recent years had seen the once flourishing company touching low grounds because of funding concerns, so the announcement comes as a big relief, especially to shareholders. It will also mean that Genesis can resume trading as a going concern after its low cash reserves forced an "unusual" accounting change.

It was forwarded by the company that Genesis has been provided with an initial funding for contract research services undertaken for the subsidiary.

Genesis will be required to transfer all its intellectual property and patent rights relating to RNAi and its new single stranded gene silencing technology to Solirna Biosciences Ltd.

"A number of international groups have shown significant interest in this new technology. We are very pleased to have agreed these terms which will allow the technology to be developed with the necessary funding," said Genesis chief executive Stephen Hall.