Scio Diamond Technology Corporation announced it has closed US$2.5 million in growth funding from Heritage Gemstone Investors (HGI) to double production of its lab-grown diamonds and refinance debt.
The funding will be used to refinance a US$1.5 million loan from Platinum Capital Partners at more favorable terms, reducing Scio Diamond’s borrowing costs by more than 10 percent. The doubling capacity will come from the purchase of additional production platforms.
“Scio Diamond has been a pioneer in developing the technology behind the success in lab-grown diamonds,” noted Vivian Wong from HGI. “We believe the company is well-positioned to be a major factor in expanding the market for lab-grown diamonds, “she added
Gerald McGuire, the president of Scio Diamond said, “Our investors and board members believe strongly that lab-grown diamonds are a promising growth market. These investments illustrate the high level of confidence that they have in Scio’s management team and business plan.”
The World Diamond Council (WDC) estimated that the worldwide diamond jewellery market has been more than US$72 billion. Lab-grown diamonds are a growing portion of the market and expected to increase by 50 percent at a compound annual growth rate by 2018, according to Frost & Sullivan’s 2014 market assessment. The change in consumer preferences tending towards environmentally and socially responsible products is a key driver for the acceptance of lab grown diamonds.
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