MONTREAL, July 8, 2013 /CNW Telbec/ - Sofame Technologies Inc. (TSXV:
SDW) (OTC: SFMGF) a leading manufacturer of environmentally efficient
industrial water heaters and cost effective heat recovery systems for
traditional boilers, is pleased to announce that four orders scheduled
to be completed in September are expected to result in total annual
revenues of approximately $ 2,000,000 for the fiscal year ending
September 30th, 2013, compared to revenues of $ 1,802,080 in 2012. Gross profit
margin on sales and net profit are expected to be in line with the
"A Percomax® industrial water heater specially re-designed for use in
the fracking industry is an exciting new development for Sofame,"
according to John Gocek, President and CEO. Gocek added, "We expect
sales of these units to comprise a significant share of revenues in
In other developments, Sofame is negotiating with U.S lenders for a $3
million revolving credit line to finance accounts receivable, and
certain trade payables related to confirmed orders to deliver Sofame
heat recovery systems and equipment. Sofame is also negotiating with
real estate investors to sell and leaseback its plant in Montreal.
Proceeds from the building sale would be used to repay various
longstanding debts. Financing activities became effective in 2013
after Sofame reported net profit in 2012 and EBITDA of $581,319, versus
negative (- $ 504,590) in 2011.
Sofame raised $430,000 over the last ten months in two non-brokered
private placements with accredited investors through the issue of units
at a price of $0.02 per unit. One private placement was announced in
September 2012 and the other in May 2013. The private placements are
subject to the TSX Venture Exchange's Notices to Issuers dated August
17, 2012, and April 12, 2013, regarding Temporary Relief from Certain
Pricing Requirements until August 31, 2013. Sofame is currently
seeking $70,000 from accredited investors to close the second private
placement, and achieve the $500,000 maximum limit allowed by the TSX
Venture Exchange under the pricing exemptions which expire next month.
Regarding future orders, Gocek said, "Sofame continues to work on
designs and engineering for major food processors, pharmaceutical
manufacturers, universities and hospitals for over a dozen industrial
heat recovery and water heating projects, representing potentially over
$4 million in new orders through 2014, excluding sales of the new frac
heater next year."
The Annual General and Special Meeting of the Shareholders has been
postponed to Friday, August 23rd, 2013. The additional time is intended to allow progress on Sofame's
acquisition strategy, which was announced in 2012, before the
shareholder meeting. "Sofame's previously announced plan to complete
at least one of the three targeted acquisitions in the 2013 fiscal year
is on track," according to Gocek.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: SOFAME TECHNOLOGIES INC.
For further information:
President & CEO
(514) 523-6545 x200
Stone Communication Services