NEW YORK, July 6 – Out of cash, Genometrix ceased operations as of Monday, June 25, a company official told GenomeWeb.
The Woodlands, Texas-based company laid off approximately 35 employees, leaving the company with a skeleton staff of five people, said David Jorden, CFO. On that day, companies using Genometrix products were told that the company had “stopped pursuing to completion existing service contracts,” said Jorden.
The company, which is currently seeking additional capital, will either “proceed with formal dissolution of the business, including sale to interested parties of assets,” or return to business with additional private funding.
Jorden estimated that the company would need approximately $10 million to remain solvent for about two-and-a-half years.
“We’ll know within two weeks whether we have a realistic option of restarting the company,” said Jorden. “If we end up on the path to liquidation, in five to eight weeks it will be consummated.”
“We think the technology has some real value,” added Jorden. “The best prospect for all considered would be a restart, but we can make no guarantees.”
The company, which developed custom-designed and prefabricated microarrays as well as software tools used to analyze gene expression data, withdrew its application for an initial public offering in February.
According to the company's original S-1 filing, Genometrix had $6.5 million cash and cash equivalents at the end of December 1999. In February 2001, a Genometrix spokesperson said that the company had not raised additional money since the filing.
Motorola holds a 16.4 percent stake in Genometrix, according to an SEC filing. While a Motorola spokesperson confirmed that Motorola was aware of rumors of Genometrix’s closing, it had not yet received documentation and thus would not comment.