Scio Diamond Receives Additional $2 million in Equity Financing
January 18, 15
(IDEX Online News) – Scio Diamond Technology Corporation has received another $2 million in equity financing. The additional funding comes in addition to the $2.5 million in growth funding received from Heritage Gemstone Investors (HGI) in December 2014 to double production capacity and refinance debt.
The offering, a direct private placement of common shares to accredited investors, started in July 2014 and was fully subscribed in December 2014.
“These two funding sources will provide sufficient capital to support Scio Diamond through cash flow break even, which we expect in 2015,” said Jonathan Pfohl, CFO of the lab-grown diamond producer.
A portion of the funding from HGI was used to refinance a $1.5 million loan. The rest of the funds from HGI were earmarked to double production capacity by buying new production platforms in a larger size.
The company said its relationship with HGI will include a second funding phase in 2015 to further increase its production capacity.
"Scio Diamond is now well positioned to meet growing market demand for lab-grown diamonds," explained Gerald McGuire, Scio Diamond president and CEO. "Our investors and board members are confident in our ability to be a leading diamond supplier."