VGXI, a Conroe-based biotech company that once received tax incentives to expand in Montgomery County, has suspended operations, failed to pay workers and defaulted on a tax abatement agreement totaling $248,000, according to employees and county officials.
A biotechnology company in Conroe, which previously benefited from substantial local tax incentives, has halted its operations, neglected to compensate its employees, and currently owes Montgomery County close to $250,000 in property taxes.
VGXI Inc., a manufacturer of plasmid DNA for clinical and research applications, ceased operations on October 16 due to a funding delay from its South Korea-based parent company, GeneOne Life Science, as revealed in an internal email obtained by the Houston Chronicle.
“VGXI is required to halt operations for now due to insufficient funding,” stated the email from human resources, noting that the company is unable to “fulfill current financial commitments, including the payroll scheduled for 16 Oct.”
Workers expressed surprise at the unexpected closure. Alan Baich, a procedural trainer, stated that the company “owes all of its former employees the last three weeks of pay.” Baich VGXI announced the dismissal of employees on October 15 and instructed them not to return until they received confirmation of the secured funding. “The following day, we received an email informing us that we were being terminated, without any severance or compensation,” he stated.
An email from the company's HR department on November 23 informed employees that there was still no update regarding the timing of the outstanding payroll payments. VGXI chose not to respond to inquiries regarding its operations or payroll matters. The company stated on Friday, “On the advice of legal counsel, we have no comment at this time.”
The Texas Workforce Commission has indicated that there are no public layoff notices associated with VGXI and has chosen not to provide further comments.
VGXI, which was originally based in The Woodlands, relocated its headquarters to Conroe in 2022 following the approval of a 10-year county tax abatement and a $1.2 million incentive from the city. The company has committed to increasing its workforce to 150 full-time positions by 2025 in return for a property tax exemption until 2030.
Officials reported that the company did not achieve the required minimum staffing levels.
Earlier this month, Montgomery County commissioners announced that VGXI was in default, holding the firm accountable for $248,000 in property taxes that have been outstanding since 2021. During recent visits from reporters, there was a noticeable absence of individuals at the Conroe or Woodlands locations.
According to former employees, the closure came after a prolonged period of furloughs and ambiguity. “The signs were clear,” stated Glen Asson, who became part of the company in 2022. “While it wasn’t unexpected, the extent of it caught us off guard.”
City officials voiced their apprehensions while acknowledging the constraints of their power. “The city expresses its sorrow over VGXI's closure, and it is troubling to learn that employees have not received their pay,” stated Conroe Deputy City Administrator Nancy Mikeska. “Given that VGXI possesses ownership of their land, the city holds no rights to the property.”
.png)
