• Mon. Mar 20th, 2023

Eypex requires more than ‘light therapy’ startup JustLight


Mar 17, 2023

Automotive supplier Eypex Corp. has taken more than an Ann Arbor-primarily based therapy device startup right after its founder was stripped of the company’s assets via a forced bankruptcy liquidation.

Auburn Hills-primarily based Eypex, a tier-one particular supplier of magnetic fasteners for vehicles, came to terms with the trustee assigned to the case of JustLight, a maker of infrared light devices that Eypex invested in and then — with each other with other creditors – forced into Ch. 7 bankruptcy right after losing faith in its founder.

Eypex agreed to spend $80,000 for the intellectual home and assets of the startup, plus $40,000 to settle a associated dispute in district court, according to a motion filed in the U.S. Bankruptcy Court Eastern District of Michigan. Moreover, it agreed to waive $1.1 million in creditor claims against the corporation.

The motion was granted Friday by Judge Lisa Gretchko.

Peter Forhan, who began JustLight in 2020, mentioned he was “disappointed but not shocked” by the outcome.

“It is a tale as old as time,” he told Crain’s. “I am a young inventor that spent years of blood, sweat and tears to commence a corporation, and now vulture capitalists have executed a hostile takeover. And the finish.”

Eypex and its CEO Robert Granata have been amongst the biggest creditors to JustLight, which contracted the automotive supplier to make its Sunflower item. The lamp-like devices emit infrared light to ease joint and muscle discomfort in a procedure recognized as photobiomodulation.

“Eypex is pleased to ultimately report that the bankruptcy judge, the Honorable Lisa Gretchko has ruled in favor of a multitude of investors whose investments have been lost due to mismanagement by the debtor,” corporation president Clarence Martin mentioned in an emailed statement. “The Judge agreed to enable the group to buy the intellectual home and assets from the Trustee in our try to fulfill the vision of the original idea to make use of multi-wave length light to address maladies in the physique.”

Martin was not quickly accessible for an interview.

JustLight’s creditors forced it into bankruptcy with an involuntary Ch. 7 bankruptcy petition final August. The corporation had $three.7 million in liabilities, according to its bankruptcy filing.

Netherlands-primarily based Light Tree Ventures expressed interest in getting the company’s assets, but its bid was substantially beneath that of Eypex, according to the motion to sell.

“The terms of the proposed offer you represent the highest and most effective offer you the trustee received for the assets,” it mentioned.

As element of the resolution of the bankruptcy case, the lawsuit filed by Forhan against Eypex – alleging a “desperate try to acquire JustLight’s assets in liquidation and oust JustLight’s founder” – was dissolved.

JustLight’s biggest creditor, which was not amongst these that drove it into bankruptcy, was Asahi Kasei, at $1.three million. The Japanese chemical supplier, which has a base in Novi, indicated final year that it was cutting help for the startup.

“Asahi Kasei is not a shareholder in JustLight – we invested via a debt instrument,” a corporation spokesman mentioned in an e mail then. “Asahi Kasei has no intention of creating additional investments in JustLight.”

Forhan mentioned he is not resentful about what occurred to his corporation. He has taken a step back from the entrepreneur life to soak up the sun.

“The final handful of months, I’ve just been living in diverse warm areas for two weeks at a time, sort of exploring the planet whilst I perform remotely,” he mentioned, adding that he is undertaking style engineering consulting. “Nowadays, I am calling from Orlando tomorrow I will be in Puerto Rico final week was in the Bahamas. Sort of chasing the sun.”

He mentioned light therapy has considerably enhanced his life, and he may possibly return to it as a organization pursuit when the time is proper.

“I feel that there is a substantial greenfield chance,” he mentioned.

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