Simulated Environment Concepts, makers of the high pressurized dry water massage and relaxation station SpaCapsule, announced this morning that its current and primary lender, AJENE WATSON, LLC, increased the company’s credit facility by an additional $250,000.
Dr. Ella Frenkel, Chairman and CEO of Simulated Environment Concepts, Inc. (SE Concepts), stated, “It is very comforting to know a firm like AJENE WATSON, LLC is supporting you with long term sound business advice and capital resources. The increased credit line gives us a cushion for smooth operation into the foreseeable future.”
Ajene Watson, Managing Member of AJENE WATSON, LLC, commented, “We have provided this company with several short-term production loans in addition to the original $100k revolving line of credit. They [SMEV] have done well in repaying their short-term production loans and are extremely prudent with the managing of their current facility. We’re confident this increase will strengthen the company’s position.”
Although the funding is not a substantial investment, not much greater is required by the company at this time. Having already sold 60 machines within the first five months of the year, with very little marketing effort, SE Concepts expects being able to close the gap on investment capital vs. operation needs by the end of this year. With the additional capital infusions AJENE WATSON, LLC intends to make available through other vehicles, the company will likely increase sales significantly while lowering production cost by over 200%. This should substantially increase profitability and allow for a more robust marketing team.
“We don’t need much to get the job done,” said Dr. Ilya Spivak. “The increase to our operation’s credit facility, along with payments for the sold products expected to arrive within the next 60 days, will provide us with an untold market advantage. If all goes as expected, there is no reason why we cannot close out 2010 with three times the sales activity that we’ve experienced within the first half of the year.”
SE Concepts anticipates securing additional bulk contracts like the multi-million dollar deal signed at the close of 2009 with Zen & O for 250 SpaCapsules. With greater penetration into the European markets, the company believes that cash flow will become significant enough to limit the need for large investment requirements.
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