BOTHELL – Eden Bioscience Corp. is selling most of its assets and laying off much of its staff after years of struggling to grow sales of its crop enhancement products.
Plant Health Care Inc. of Pittsburgh, Pa., will pay $2.5 million for Eden’s patented technology, its manufacturing equipment and its line of products aimed at the agricultural market. It also will assume many of Eden’s liabilities, including the lease of its Bothell headquarters.
As part of the deal, Plant Health Care already has become the exclusive distributor of Eden’s products for the agricultural market.
Eden, however, will retain its cash and its products aimed at home and garden customers.
The sale, which is scheduled to close in February, is subject to the approval of shareholders and other conditions.
Eden Chief Executive Officer Rhett Atkins and its chief financial officer could not be reached for comment Monday.
Atkins will be among the unknown number of staff members leaving the company, though he will stay on the board of directors. Taking over as president as of Dec. 15 will be longtime CFO Bradley Powell.
Eden also will “substantially” reduce its administrative, marketing, sales and manufacturing staff by the year’s end, though the company didn’t release specific numbers. That move will save about $1.4 million a year.
Eden, founded in 1994, developed plant enhancement products based on harpins, naturally occurring proteins that activate plant defense systems to protect against disease and pests. While customers reported good results from its flagship Messenger and Eden’s other products, it struggled to find sales.
After years of losses, Eden’s board indicated this summer they were contemplating a sale of at least part of the company. In the third quarter of this year, products sales totaled $258,000, down from $343,000 in the year-ago period. The third-quarter net loss for the business was $1.1 million.
Eden’s stock price rose Monday by 3 cents to 55 cents a share.
Reporter Eric Fetters: 425-339-3453 or fetters@heraldnet.com.
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