The US operation of financially stricken resveratrol supplier, Fluxome, says the cash crisis that has forced closure of its Danish research facility, will not halt resveratrol supply through its US operation.
In a statement, the US arm of the company said the closure was necessary to preserve the US operation as firm awaits potential investment lifelines around IP for a long-running yeast-derived omega-3 project.
“[The closure] was taken in part to preserve assets for its US commercial operations for the production and selling of resveratrol,” Fluxome Inc. [US] said.
“At this time, the Danish facility has closed its research activities during this reconstruction phase. Fluxome A/S [Denmark], while in reconstruction, is in the process of obtaining additional funding to continue its operations both here and abroad and/or a sale of its assets.”
“In the meantime, it is business as usual for the resveratrol operation and customers should not notice any disruption in supply.”
The closure saw 21 people sacked last week without notice or pay for September as the company filed for a “formal reconstruction” in Danish courts. That matter is set to be heard on October 22.
One observer close to the situation said it was a direct result of mismanagement and overspending on new staff and facilities, while the company said it was precipitated by the last-minute withdrawal of an investor.
Chairman Jarne Elleholm said 3-4 parties - industry players and venture capitalists - had expressed strong interest in taking a share in investing in the omega-3 research project that employed about 15 people until last week.
Fluxome is owned by venture capital firms based in Belgium, France and Denmark.