Artecel Technologies, which had hoped to turn fat tissue into adult stem cell therapy, is shutting its doors.

The company, which raised $4 million in venture capital three years ago, was unable to raise additional funding and had laid off 15 of 17 staff members last summer.

But its research will live on, having been purchased by Toucan Capital Corp. of Maryland, a venture fund. It will start a new company called Artecel Inc.

Carolyn Underwood, president and chief executive officer of the company, told The Herald-Sun that proceeds of the sale would be returned to investors and that they might realize a profit. She did not disclose terms of the deal.