Biodegradable packaging manufacturer EarthShell Corp has announced that it cannot guarantee it will be able to meet its payroll or other financial obligations after December 15, 2006, unless it is able to secure additional financing. The company says it has been seeking stability funding to allow it to complete the execution of its business plan, which calls for it to become self sustaining in 2007.
However, the company “does not currently have definitive funding commitments to assure that it can continue to meet its payroll or other financial obligations”. The executive management committed “certain personal funds to maintain operations between December 1 and December 15, 2006”.
On November 15, 2006, during a shareholder call, EarthShell reported that its investment banker has found it more difficult than expected to raise capital for the company. It has also approached other key stakeholders for additional interim funding.
Although the company continues to be in active discussions with potential funding sources, “no definitive commitments are in place at this time”. While EarthShell “will continue to vigorously pursue all financing options”, it warns “there can be no assurance that it will be successful in securing the appropriate financing in a timely fashion”.
Chairman and ceo Vincent J Truant states: “We have placed EarthShell’s technology on a positive course and met our key business development goals this past year. Concurrently, we have built a solid foundation for EarthShell’s commercial success by accomplishing several first time and fundamental strategic initiatives. However, the company has not yet been able to secure the resources to complete our mission at this time. I thank our investors, customers, suppliers and employees for their consistent support as we work to accomplish what is admittedly a tough workout and turnaround situation.”
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