EarthShell Corp., a publicly traded company on the Over the Counter Bulletin Board under the symbol ERTH, said in a release that it would be unable to meet its payroll and other financial obligations after Friday because of the funding shortfall.
“The company has not been able to secure the resources to complete our mission at this time,” company chairman and chief executive Vincent J. Truant said in a statement.
Data compiled by the financial research firm Morningstar shows that major shareholder Essam Khashoggi and E. Khashoggi Industries LLC began dumping blocks of shares in the company last month. Shareholder Lavla Khashoggi also sold blocks of EarthShell stock throughout November.
Essam Khashoggi, who is chairman of E. Khashoggi Industries LLC, resigned as chairman of EarthShell’s board of directors in July 2005. He held the position since the company was founded in November 1992.
The shareholders sold a combined portfolio of more than 65,000 shares at prices ranging from $1.55 per share to $1.33 per share. Late Friday, shares of EarthShell were trading on the OTCBB at 29 cents per share. Its 52-week high was $2.30 per share and its 52-week low was 23 cents per share.
Calls to Truant, chief financial officer D. Scott Houston and company spokeswoman Cindy Eikenberg were not returned.
EarthShell manufactures and markets paper products for the food-packaging industry. At the beginning of the year, the company had six employees.
In its reports to the Securities Exchange Commission, EarthShell said it is involved in litigation involving two equipment vendors seeking to collect about $600,000 for manufacturing equipment for the company’s facility in Goettingen, Germany.
The company also reported to the SEC this year that it has suffered “significant losses since inception, has minimal revenues and has a working capital deficit of $11,458,467” at the end of last year.
Another one of Simon Hodson’s shell games coming to a close. What will that kooky millionaire do next?
/mark “rizzn” hopkins
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