MONTREAL, Nov. 6, 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, has concluded a senior secured
revolving credit facility agreement of up to US$ 3,000,000 with TCA Global Credit Master Fund, LP. Under the credit agreement, advances bear interest at the rate of
12% per annum and are secured by all assets of the company. An initial
disbursement of a $ 400,000 note was completed on September 23, 2013
and the use of proceeds is for working capital. Additional
disbursements will serve to finance future growth of accounts
receivable as Sofame pursues its business development plan in 2014.
Revenue growth in 2014 is expected to come from sales of the new 99%
efficient 10 and 30 million BTU frac heaters, sales of Sofame's core
industrial energy efficiency systems, and incremental revenues from the
acquisition of compatible companies in the HVAC field.
According to John Gocek, Sofame's President & CEO, "We are pleased that
TCA Global has decided to take on the role of financing for growth,
which has been neglected for several years by most traditional lenders
including banks. This secured revolving note facility serves three
essential purposes, namely, access to cash to finance orders in hand,
tangible working capital support in the event we acquire other niche
firms in our field, and safekeeping of all of our intellectual property
developed over the last twenty-five years."
As part of the new loan agreement, the existing first rank mortgage bond
securing the $ 250,000 bridge loan will be subrogated in favour of the
new note and credit line. The TCA Global Fund has agreed to allow
Sofame to sell its plant in Montreal to a real estate investment fund,
and leaseback its offices to reduce financing and operating costs.
Sofame has outsourced its manufacturing for the last three years, and
does not require in-house manufacturing capabilities. The offer to
purchase the building is being finalized in November pending
environmental and structural evaluations. The existing mortgage
capital and interest will be repaid at the closing.
The TSX Venture Exchange has conditionally approved the issuance of
800,000 bonus shares at $ 0.05 cents under a fee agreement negotiated
between TCA Global Master Fund and Sofame. An additional 800,000 bonus
shares will be submitted for TSX Venture Exchange approval when the $
400,000 loan maturity is extended. After the current issue of 800,000
bonus shares, there will be currently 188,265,397 common shares
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About TCA Fund Management Group:
TCA Fund Management Group (www.trafcap.com) is Investment Manager for TCA Global Credit Master Fund L.P. and acts
as advisor to many small companies from offices in the United States,
United Kingdom, and Australia. TCA is a short duration, absolute return
fund specializing in senior-secured lending to small, mainly listed
companies in the U.S., Canada, Western Europe, and Australia. The team
has extensive domestic and cross-border credit expertise, long-standing
experience with funding innovations, which is reflected in the volume
of transactions completed. The fund is a specialist business with an
investment approach that fills an important finance gap in many leading
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
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