COLUMBUS, OH--(Marketwire - November 29, 2010) - SCI Engineered Materials, Inc. ("SCI") (
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."
SCI Engineered Materials, Inc. manufactures ceramics and metals for advanced applications such as photonics, thin film solar, thin film batteries, and semiconductors. SCI Engineered Materials is a global materials supplier with clients in more than 40 countries. Additional information is available at http://www.sciengineeredmaterials.com.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management, and specifically include statements concerning plans for SCI to contribute approximately $0.9 million in equity during the 20-month project, funds will be used to acquire additional manufacturing equipment to scale SCI's operations to meet anticipated sales growth to solar customers, SCI expects to expand its manufacturing facilities and nearly triple its current workforce of 26 employees over the next three years, the Company looks forward to accelerating implementation of the growth strategy as SCI invests funds in its business and also successfully converts product trials into orders. These forward-looking statements involve numerous risks and uncertainties, including, without limitation, other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K for the year ended December 31, 2009. One or more of these factors have affected, and could in the future affect, the Company's projections. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
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