Simulated Environment Concepts, Inc. (SMEV.PK) Secures Initial Capital for Manufacturing Cost Reduction Initiative

QualityStocks would like to highlight Simulated Environment Concepts (PINKSHEETS: SMEV), developer of a variety of products for wellness, relaxation, weight loss, and rehabilitation. The company’s SpaCapsule aqua massage and hydromassage products are used by doctors, gyms, spas, retail locations, offices, and many other venues.

In the company’s news yesterday,

Simulated Environment Concepts announced that it has secured the initial capital necessary to commence its plan to reduce the manufacturing cost of their flagship product SpaCapsule.

Dr. Ella Frenkel, Chairman and CEO of Simulated Environment Concepts (SE Concepts), Inc., stated, “What we will achieve fiscally from this effort could result in our becoming a top purveyor of medical, health and wellness products in our market.”

SE Concepts’ management believes Spa Capsule has unprecedented international appeal, and with the current investment into the production process – intended to be funded over the next four months – the company’s potential of expansion and increased profitability has dramatically increased.

Dr. Ilya Spivak, Marketing Director and co-inventor of the SpaCapsule, commented, “Through our cost reduction program, the expenditure for materials alone will be reduced by at least 40%. Tack on a healthy cut to associated labor cost and the profitability of each capsule climbs nearly 50%; never once compromising our distinguished quality.”

According to the press release, AJENE WATSON, LLC and SE Concepts spent considerable time strategizing this opportunity. With global economic conditions as they are, intelligent capital was not readily available. However, SE Concepts was able to prove their business model by continuously generating revenues through ongoing sales of the SpaCapsule as well as secure several multi-year, multi-million dollar international distribution contracts. The company has also successfully serviced short-term production loans from the current cash flow. Upon completion of the cost reduction program, cash flow is expected to increase nearly tenfold.

Because of these recent achievements, more financial opportunities have emerged. The financing necessary to execute the expense reduction plans appears to be well on its way. Last week, the company received the first installment of the financing.

Dr. Frenkel concluded, “We are delighted. With two European trade shows in October and November, we will receive even more exposure. The ability to offer distributors better pricing, with substantially increased profitability, allows us greater flexibility in providing marketing and distribution incentives to our customers.”

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