Decorize doubles capacity in yearlong expansion

Publicly traded Decorize (AMEX: DCZ) announced March 23 it has raised $1.36 million in capital to add square footage to its Indonesia factory and to increase its supply chain infrastructure in China and India.

CEO and President Steve Crowder attributes the increase in demand to a stronger competitive edge in the home accents industry.

“We’ve expanded our design capacity – our designers are right on the trends of the marketplace,” he said. “And we’ve done a lot of work with our sales folks, and the quality of the product has improved dramatically.”

Between 15,000 square feet and 20,000 square feet will be added to the Indonesia factory, Crowder said, and between 15 and 20 suppliers will be added in China and India, where Decorize already partners with about 50 suppliers.

Currently, Decorize ships about 10 containers each month, and the expansion will allow between 20 and 25 containers to be shipped monthly, Crowder said.

To finance the expansion, three major investors have exercised outstanding common stock warrants to provide $610,000 of the capital. Quest Commercial Finance LLC will provide a $750,000 line of credit for the remaining expense.

In conjunction with the financing, several Decorize shareholders will convert debt in exchange for shares of the company’s common stock.

Decorize recognized a need for expansion about a year ago, Crowder said, and the company has been exploring its options and seeking funding since then. The expansion will take place throughout the next several quarters.

Decorize’s Springfield operations will be unchanged. Decorize provides home furnishing supplies from the Far East. Decorize shares closed March 29 at 43 cents, compared to a 52-week range of 32 cents to 81 cents.

Decorize’s Million-dollar Financing Plan

• $610,000 in outstanding stock warrants exercised by three investors

Quest Capital Alliance LLC purchased 1,807,143 shares March 7 for $361,428.

SRC Holdings Corp. purchased 1.5 million shares March 14 for $300,000.

Nest USA purchased 371,000 shares March 20 for $74,200.

• $750,000 line of credit from Quest Commercial Finance LLC

Source: Decorize Inc.’s 8-K Securities & Exchange Commision filing

This story originally appeared in SBJ’s March 24 free e-news Daily Update. Register at sbj.net.