Troubled dietary supplements maker Star Scientific Inc revealed that it has closed $9.3 million in funding from its investors, according to Times Dispatch.
The company explained its predicament: "The revenue generated from our nutraceutical (dietary) supplement and cosmetic products has not historically exceeded our operating expenses, and given our shift in focus away from these lines of business, we do not expect such revenues to exceed operating expenses in the foreseeable future. We anticipate that our future revenue will be highly dependent on the successful development and commercialization of one or more new pharmaceutical products."
In addition, Star Scientific has also struck a $5.8-million credit facility deal with an undisclosed investor. The latest funds raised would allow the firm to continue operating until 2015's first quarter, the report detailed.
The Henrico County-based firm has not been profitable for over a decade already. Last year, Star Scientific posted a $32.8-million loss and has been experiencing liquidity problems. The 25-person company plans to consolidate its Virginia and District of Columbia operations to its headquarters in Florida, Times Dispatch reported.
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