BOTHELL – Eden Bioscience Corp. has set a shareholders meeting on Feb. 26 to vote on the proposed sale of its core technology and other assets to a Pennsylvania company.
Plant Health Care Inc. of Pittsburgh has offered $2.5 million for Eden’s patented protein-based technology, its manufacturing equipment and its crop-enhancement products marketed to agricultural customers.
It also would assume many of Eden’s liabilities, including the lease of its Bothell headquarters.
Eden, on the other hand, would retain only the right to sell its products aimed at home and garden users. During the first nine months of 2006, sales of Eden’s home and garden plant enhancers totaled $377,000, about 10 percent of the company’s total revenue.
In its proxy notice to shareholders, Eden makes clear it doesn’t plan big steps to grow its remaining revenue generator.
“We have no current intention of making substantial investments to grow our home and garden business,” the proxy notice said, adding that Eden’s remaining resources may not be sufficient to keep that business going.
Since announcing the proposed buyout in December, most of Eden’s small staff has been laid off and the chief executive, Rhett Atkins, left.
Founded in 1994, Eden created plant enhancement products based on naturally occurring proteins called harpins that activate plants’ defense systems. Its products are sold under the brand names Messenger, ProAct, N-Hibit and Mighty Plant.
But efforts to market and sell to farmers and home gardeners have struggled. In the first nine months of 2006, the company’s sales totaled $3.7 million, up from $3.1 million in the same period of 2005. But the company’s net loss also grew to $7.7 million for that period, up from $7.5 million.
Eden’s stock also has struggled to gain traction on the Nasdaq market. It closed Thursday trading at 54 cents per share.
The shareholders meeting is set for 9 a.m. Feb. 26 at the Country Inn &Suites By Carlson, 19333 North Creek Parkway in Bothell.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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