Resveratrol player faces bankruptcy if omega-3 funding switch fails: Chairman
Jarne Elleholm said, contrary to rumours, the company had not filed for bankruptcy although it faced a serious “funding crisis” that could end that way if one of 3-4 potential investors did not back its planned shift into omega-3s sourced from yeast.
“We are speaking with 3-4 interested parties including industry players and capital funds and expect to have a clear picture on how to move forward in 8-12 weeks,” Elleholm said, noting the figure required was in the seven-figure range.
If the funding failed to eventuate, the company – both its Danish and US operations – faced bankruptcy unless a buy-out partner arose or funding could be found internally.
In the meantime Fluxome filed for “formal reconstruction” in Danish courts last week which again is expected to take 8-12 weeks to resolve.
Its Danish office is closed while the reconstruction takes place, but Elleholm emphasised that resveratrol supply in the US was "business as usual".
Elleholm said the resveratrol business was moving steadily ahead in the US, but obviously its performance is not strong enough to have averted the current dilemmas for the company.
“There is an issue and we are managing it in an appropriate way to make ends meet and get the required funding,” Elleholm said.
Fluxome is owned by venture capital firms based in Belgium, France and Denmark.
