Large Scale Biology Abruptly Ceases Operations, Closing California Office and Kentucky Manufacturing Plant

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). It was a bitter 2005 holiday season for the entire staff of Large Scale Biology Corporation (LSBC), formerly of Vacaville, California. The company issued a terse public statement on December 23, 2005, that all operations would cease at close of that business day as "...a result of a lack of cash and liquid assets". The company did try to soften the blow by notifying their employees the day before and offering some sort of a severance package, although specific details were not available.

Founded in 1987, LSBC had almost 200 workers when the company went public in 2000 and was listed on Nasdaq as LSBC. The initial public offering raised over $90 million. In addition to its nearly 80 employees located at the Vacaville headquarters, the company employed 23 at a 30,000 square foot biomanufacturing plant in Owensboro, Kentucky. The Kentucky site was considered the world's first plant-based commercial-scale biopharmaceutical production facility. Until 2003, LSBC also had 53,000 square foot contract proteomics research facility in Germantown, Maryland. That site was closed and 60 jobs were lost when the division failed to turn a profit.

After the came out on December 23, 2005, shares of LSBC halted at $1.41 in afternoon trading. Earlier in the day, the company was notified that Nasdaq would delist their stock at the opening of business on December 27, 2005 because of several compliance issues. There were indications throughout the year that LSBC was struggling. A quarterly report filed with the Securities and Exchange Commission in November expressed "substantial doubt" about the company's ability to continue operations. Although the company’s website remains online, calls to the Vacaville office are met with a recording reiterating the company’s closure on December 23, 2005 and stating that no calls would be returned.

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