Posted at 12:41 p.m., Tuesday, December 4, 2001

Financing OK'd for Aquasearch

Advertiser Staff

Big Island biotechnology firm Aquasearch won approval yesterday from U.S. Bankruptcy Judge Lloyd King to obtain up to $300,000 in temporary financing, install a new president and get four months' time to create a plan for future funding and operations.

Company president and CEO Mark Huntley has stepped down to become chief technology officer. In as president is Harry Dougherty, a marketing consultant.

King approved the temporary financing, which will cover payroll for Aqua-search's approximately 15 employees plus the company's land lease with the Natural Energy Laboratory of Hawai'i Authority in Kailua, Kona.

The financing provider is Chardan Ventures, a California biotechnology venture capital firm. Chardan principal Richard Propper will join an advisory committee to oversee Aquasearch operations.

Aquasearch has been under financial pressure since Oct. 30, when five petitioners sought to push the company into involuntary bankruptcy. The creditors claimed Aqua-search owed them $550,000. Aquasearch has fought the petition, and the new financing is the company's response to the filing.