Synthetic Blood lays off workers as cash nearly runs out

By Angela McDaniels

Seattle, Oct. 10 - Synthetic Blood International, Inc. temporarily laid off its employees at the beginning of October because it does not have the working capital to pay them, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

In September, the company said it needed immediate financing to cover administrative expenses and the testing of Oxycyte. As of Tuesday, it had not obtained sufficient financing to continue funding its operational expenses.

Synthetic Blood believes it will be able to rehire its staff members if additional financing can be arranged by the end of the month.

The company's eight-patient phase 2 clinical study of Oxycyte in patients with traumatic brain injury has been completed and there are no other clinical trials in progress. No vendor has indicated an immediate demand for payment at this time, according to the filing.

The Costa Mesa, Calif.-based pharmaceutical and medical devices company said it will use its remaining resources to prepare and file periodic reports with the SEC while it seeks additional sources of equity or debt financing.

Synthetic Blood gave no assurance, however, that it will be able to obtain additional financing to meet its operational needs and to resume its program for testing Oxycyte.

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