💥New Chapter 11 Bankruptcy - Solar Biotech Inc.💥

Biotech company files bankruptcy to pursue a sale to pre-petition secured lender.

On June 23, 2024, VA-based Solar Biotech Inc. (“SBI”) and one affiliate Noblegen (“NI,” together with SBI, the “debtors”) filed chapter 11 bankruptcy cases in the District of Delaware (Judge Silverstein). The debtors are in the business of “scaling biotech designs and prototypes on a commercial scale,” according to the first day declaration of CEO and Chief Technology Officer Alex Berlin. The debtors recently lost a major customer who contributed some 80% of revenue over the past two years. This has “greatly hampered the Debtors’ liquidity situation,” Berlin said. 

This almost suggests the debtors are providers of contract services to biotechs? Not quite. Poke about their website, and you’ll see references to Customized modular plant architecture and SynBioHyperintegration Algorithms (SHAs), which create BioNodes. The debtors’ BioNodes have been used to create synthetic proteins for veggie burgers as well as cosmetic oils. “The Debtors have been able to provide sustainable and scalable services to a wide range of customers, and have brought over ten (10) synthetic products to market,” Berlin said. Wow, sounds amazing. Revenues since founding in ‘19 total over $14 million. Um, not amazing.

Still … revenue! You’d think that would get venture juices flowing right? RIGHT?

Nope. The debtors’ last attempted round of seed funding flopped. Berlin points to a lackluster venture market.*