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The board of Eatontown, N.J.-based Millennium Cell (Nasdaq: MCEL), a fuel cell developer, announced that it plans to file for bankruptcy protection and expects to liquidate the company's assets.
The move comes after the company received a going concern qualification from its independent accounting firm earlier this year.
Millennium Cell closed its operations in May, but said at the time that it was in discussions with a corporation that had expressed interest in entering into a reverse merger with it.
"As discussions for that transaction did not proceed as expected and were terminated by the company, the company's board of directors determined that it had no further options other than to pursue the liquidation plan/bankruptcy," said the company in a statement.
Last August, Millennium Cell made a deal with Singapore's Horizon Fuel Cell Technologies, with Horizon acquiring a license to Millennium's hydrogen storage technology (see Licensed to win). Horizon planned to use the technology to build and distribute a 50 watt emergency power unit designed to support disaster relief professionals.
The companies announced an equity exchange two months later as part of an agreement to jointly develop and sell hydrogen fuel cells (see Millennium, Horizon Fuel Cell in stock swap).
Horizon launched the sale of the emergency power units, called the HydroPak, in February in Japan, but the two companies had planned to start selling additional products for consumer and military use this year and next year.
Millennium said the proceeds of its liquidation will be distributed to its creditors. The company said there is no expectation that the holders of the company's common stock will receive any cash from the asset sale.
The company plans to file for bankruptcy within the next 30 to 45 days"
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