Biodegradable food packaging company EarthShell Corporation (OTCBB: ERTH) today warned it can't guarantee it will be able to meet payroll or other financial obligations after December 15, 2006 unless it's able to secure additional financing.
EarthShell has been seeking funding to help the company achieve cash flow break even in 2007. However, the company says it doesn't yet have definitive commitments to assure that it can continue to meet its payroll or other financial obligations.
Executive management committed personal funds to maintain operations between December 1 and December 15, 2006.
On November 15, 2006, during a shareholder call, the company summarized recent progress to turn itself around, greatly improve EarthShell’s performance and bring EarthShell plates and bowls to market through its licensees, ReNewable Products, Inc. (RPI) and EarthShell Hidalgo.
However, EarthShell also reported that its investment banker has found it more difficult than expected to raise capital.
The company has also approached other key stakeholders for additional interim funding. Although the company continues to be in active discussions with potential funding sources, no definitive commitments are in place at this time.
The company says it's vigorously pursuing all financing options.
EarthShell is engaged in the licensing and commercialization of proprietary composite material technology for the manufacture of foodservice disposable packaging, such as plates, bowls and cups. Its products are made primarily from natural limestone and starch from potatoes, wheat or corn.
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