SCI Engineered Materials, Inc. ("SCI") (OTCBB: SCIA) develops and commercializes technologies and manufactures ceramics and metals for advanced applications in the physical vapor deposition industry.
The company announced today it has received final approval for two seven-year loans from agencies of the State of Ohio totalling approximately $2.1 million to further SCI's growth in the solar market.
The two loans are linked and include a $0.7 million 166 Direct Loan from the Ohio Department of Development ("ODOD") and a $1.4 million Ohio Air Quality Development Authority ("OAQDA") 166 Direct Loan as part of the Advanced Energy Job Stimulus. Each of the Company's loan applications was independently reviewed as part of the approval process. The interest rate for each loan is 3%.
SCI will also contribute approximately $0.9 million in equity during the 20-month project to achieve its $3.0 million of forecasted capital requirements for the manufacturing expansion of transparent conductive oxide products. For the nine months ended September 30, 2010, the company generated positive cash flow of approximately $0.5 million and had approximately $1.5 million in cash on that same date.
These funds will be used to acquire additional manufacturing equipment to scale SCI's operations to meet anticipated sales growth to solar customers. As a result, the Company expects to expand its manufacturing facilities and nearly triple its current workforce of 26 employees over the next three years.
Dan Rooney, Chairman, President and Chief Executive Officer, commented, "We want to thank the ODOD and OAQDA for their support concerning the approval of these loans, which included an extensive due diligence process. The loans represent an integral part of our capital plan for 2011-2012 and provide us with increased financial flexibility to meet anticipated demand for our innovative transparent conductive oxide products. We are actively involved in product trials with several solar customers and look forward to accelerating implementation of our growth strategy as we invest these funds in our business and convert additional product trials into orders."
Source: http://www.sciengineeredmaterials.com/