Large Scale Biology shuts down

By E. Janene Geiss

Philadelphia, Dec. 22 - Large Scale Biology Corp. said Thursday that as a result of a lack of cash and liquid assets, it will cease operations effective Dec. 23.

The company said it is notifying its employees that it is not able to continue to fund payroll, so their employment also will terminate Friday, according to a company news release.

"Despite our efforts to generate revenue, obtain debt and equity funding and sell or license selected assets at reasonable prices, our revenue and liquid assets are not sufficient to sustain our current operations," Kevin J. Ryan, president and chief executive officer, said in the release.

Trading of the company's shares was halted on the Nasdaq Capital Market, officials said.

The company said it will not appeal the determination to delist the company's stock at the opening of business Dec. 27. Accordingly, the stock will cease trading at the end of the trading day Dec. 23, officials said.

On Aug. 24, Nasdaq notified the company that it did not comply with the $1.00 minimum bid price requirement. A further warning followed on Nov. 23 because it did not have a minimum of $2.5 million in stockholders' equity or $35 million market value of listed securities or $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years.

On Dec. 15, the company said Nasdaq notified it that the firm's shares had not closed at $1.00 per share or more for 30 consecutive business days since June 16 in violation of Nasdaq rules.

Executives said the company was taking steps to preserve assets for the benefits of creditors and stockholders. Licensing and collaboration possibilities did not materialize in time to provide cash for current operations or to meet the Nasdaq requirements, officials said.

But the company said it would continue exploring alternatives.

Large Scale Biology is a Vacaville, Calif., company developing therapeutic and industrial proteins, vaccines and diagnostic products for effective characterization and treatment of disease.

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