CellCyte runs out of cash, closes
CellCyte Genetics, whose market value briefly put it among the district’session biggest biotech firms last year, has shut down — and hasn’t been good to pay opening on its Bothell headquarters.
“We presently act not have sufficient cash to national obligations our operations, and have curtailed essentially competently all activities,” the company said in a delayed quarterly report, filed Monday with the Securities and Exchange Commission.
CellCyte said it had $5,734 in cash at the period of September, and for the duration of the third allot, it couldn’t pay the lease on its facility.
The company said it was talking through the landlord to renegotiate the lease and to fall in with subtenants to take over parts of the building. The landlord is holding on to a $44,000 guard deposit.
It’s been a hard fall for CellCyte. The fledgling stem-cell- research company, whose shares traded from hand to hand the counter and in the Frankfurt Stock Exchange, saw its value soar past $400 million last year on the model of a spamming campaign paid as antidote to by one of its main shareholders.
The shareholder, a Vancouver, B.C.-based stock promoter named G. Brent Pierce, was then under a 15-year ban by means of the B.C. Securities Commission.
CellCyte’s shares plummeted in January succeeding The Seattle Times published stories describing the stock-promotion efforts and inconsistencies in the résumé of CellCyte Chief Executive Gary Reys.
The company faces shareholder lawsuits and is under a formal scrutiny by the SEC. Last August, the company said it had fired some employees and stopped profitable salaries.
Its technology to put in order stem cells home in on damaged organs, which promoters hyped in colorful brochures, also turned out to be a disappointment.
The latest filing said that in July the company recorded a $569,000 loss on the licenses and patents it obtained from the Department of Veterans Affairs, that developed the technology.
As of Tuesday, CellCyte was worth about $9.5 million. From its inception in 2005, the company has forfeited $10 the public.
Ángel González: 206-515-5644 or agonzalez@seattletimes.com
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