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Posted: April 12, 2008
NaturalNano Struggles to Survive
(Nanowerk News) A struggling Pittsford nanomaterials company hopes to start selling its clay-based materials additive in substantial amounts by the end of the year — if it survives that long.
NaturalNano Inc. indicated in its annual report, issued Friday, that it needs to raise $5 million by May 15 to keep going. That date is the point at which the small company will run out of money, the annual report said.
NaturalNano's stock took a beating on the latest news, closing Friday at 5 cents a share — down 1 cent, or 17 percent.
It had been trading as high as 38 cents a share in early 2007.
According to the annual report filed with the Securities and Exchange Commission, the company has racked up losses of $17.4 million through the end of 2007 and expects to continue in the red through 2008.
The report indicates the company does not expect to start making enough money to fund the business until 2009 at the earliest.
According to the annual report, NaturalNano hopes to raise the $5 million either through sale of more stock or through borrowing.
The company, which employs 11 in Pittsford and Henrietta, makes Pleximer — microscopic tubes of halloysite clay mixed into polymer.
According to NaturalNano, adding Pleximer to other plastic products makes them lighter and more durable at a much cheaper cost than other nanotube additives.
One of the company's top goals for 2007 was getting Pleximer to market — something it did in the fourth quarter of the year.
The company said it earned nominal revenue from selling Pleximer last year.