NanoLogix hits snag; need funds

By Don Shilling

HUBBARD — A tiny biotechnology company says the weakened economy has slowed its ability to obtain the financing necessary to meet its growth goals but a positive announcement is expected soon.

NanoLogix needs $500,000 for large-scale production of test kits that the company says can replace current techniques in laboratory testing.

Bret Barnhizer, company chief executive, said in October that he planned to begin producing at least 8,000 kits a week in December.

He said Monday, however, that he was unable to arrange all of the financing needed because of the collapse of the economy and credit markets. He added that he has three potential private investors who are considering an investment in the company and also is hoping for federal loans or grants.

Barnhizer said he expects to make a major announcement in two or three weeks.

Barnhizer said he has been speaking with the staffs of U.S. Rep. Tim Ryan of Niles, D-17th, and U.S. Rep. Charlie Wilson of St. Clairsville, D-6th, about obtaining funding from regular appropriations or stimulus funding.

Public money or private investment would be used to construct a manufacturing operation at the company’s offices at 843 N. Main St. and to fund the first six months of production, Barnizher said. The company has leased additional space at that location to prepare for production.

NanoLogix now is handling limited production at an office in Cincinnati.

Barnhizer expects to employ 50 in Hubbard by the end of the year. The company now has four employees there. Research is conducted by a scientist in Cincinnati.

NanoLogix announced Monday that it has reached a consulting agreement with veteran journalist Bill Scanlon to coordinate advance publicity for future news announcements. Scanlon was a science, medicine and business writer, most recently for the Rocky Mountain News. The Colorado newspaper closed last month.

NanoLogix says it has new technology that can confirm the presence of bacteria and viruses in two to six hours, instead of 24 to 72 hours that are needed with traditional petri dish tests. The company says treatments for threats such as meningitis, salmonella or anthrax could begin much quicker if identified sooner.

The company’s stock last traded for six cents a share. Nanologix was founded in 1989 under the name Infectech. Barnhizer invested in the company in 2005 and took over as chief executive in 2007.

shilling@vindy.com