- New symbol of SIC on TSX Venture Exchange, effective February 21, 2008
- Incorporation of Sigma US Industries Inc. to facilitate growth in
- Final settlement of insurance claim related to 2005 fire at René
- ISO 14001:2004 certification of René Composites Materials facilities
- Implementation of cost reduction measures
QUEBEC CITY, Feb. 21 /CNW Telbec/ - Sigma Industries Inc. (TSX Venture
Exchange: SIC), a leading composite and metal products manufacturer, is
announcing important corporate developments. These initiatives are essentially
aimed at supporting the implementation of its growth strategy, further
strengthening its balance sheet and reducing operating costs.
CORPORATE NAME CHANGED TO SIGMA INDUSTRIES INC.
Following the approval, at Sigma Ventures' annual and special meeting of
shareholders held on September 26, 2007, of a motion authorizing the Company
to modify its corporate name, the latter has been changed to Sigma Industries
Inc. The new name confirms Sigma's strategy of operating manufacturing
facilities, developing new products and acquiring companies that bring
complementary technologies in order to offer a complete range of technological
solutions and act as a solutions' integrator for its clientele.
Following the adoption of this new corporate name, common shares of Sigma
Industries will trade, as of February 21, 2008, under ticker symbol SIC on the
TSX Venture Exchange.
INCORPORATION OF SIGMA US INDUSTRIES INC.
In order to pursue its growth strategy in the United States, the Company
also announced the creation of a wholly-owned U.S. subsidiary called Sigma US
"This new entity will be a key element in achieving our growth
objectives," stated President and Chief Executive Officer, Denis Bertrand. "In
fact, we are actively pursuing our efforts to acquire companies involved in
our existing markets and susceptible of broadening our technological and
client portfolios. With roughly 70% of our sales in the United States, the
necessity to further strengthen our relationships with our clients, through
increased proximity of our respective facilities, and to better match up our
cash inflow and outflow in foreign currency justifies our quest."
FINAL SETTLEMENT OF THE INSURANCE CLAIM RELATED TO A FIRE AT RENE IN 2005
The Company is pleased to announce the final settlement of the insurance
claim resulting from a fire that damaged the installations of René Composites
Materials in St-Ephrem-de-Beauce on October 19, 2005. A final amount of
$4.1 million has been received by the Company on February 11 which, combined
with earlier payments of $9.0 million, bring the total settlement to
"This cash receipt further strengthens our balance sheet," mentioned
Chief Financial Officer, Bertrand Côté. "We intend to use proceeds to reduce
our bank debt, which should give us greater flexibility in pursuing our growth
objectives through acquisitions."
Following this settlement, a gain on insurance settlement totalling
$1.4 million will be recognized in the consolidated statement of income for
the three-month period ended January 26, 2008. After deducting related income
tax charges, the net gain should be around $1 million.
ISO 14001:2004 CERTIFICATION OF THE RENE COMPOSITES MATERIALS FACILITIES
Management of Sigma is proud to announce that René Composites Materials'
two facilities, located in St-Ephrem-de-Beauce and Ste-Clotilde, have obtained
the ISO 14001:2004 environmental certification. The norm defines requirements
with reference to an environmental management system allowing an entity to
develop and implement policies and objectives that consider various
requirements to which the entity subscribed, as well as information related to
significant environmental aspects.
"This certification will be recognized by our current and future client
base as a positive measure aimed at supporting our objective of becoming a
world-class manufacturer," added Denis Bertrand.
COST REDUCTION MEASURES
In order to constantly optimize its operational infrastructure the
Company proceeded with the merger of its metal component manufacturing
facilities. The production of such components is now centralized at the
PNS-TECH Inc. facility located in St-Agapit. An agreement to sell the building
as well as certain equipment of the L'Islet facility has been reached.
Proceeds of $0.4 million will be used for working capital purposes.
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX-V: SIC), a leading composite and metal
products manufacturer, has five operating subsidiaries and employs close to
500 people. The Company is active in the growing heavy-duty truck, coach,
transit and bus, train and subway, machinery, agriculture, light forestry, and
wind energy market segments. Sigma sells its products to original equipment
manufacturers and distributors in the United States, Canada and Europe.
Sigma has had a recent history of steady growth and accretive
acquisitions. Its recent and planned growth initiatives are expected to
continue to raise Sigma's profile with investors.
This press release contains certain forward-looking statements with
respect to the Company. Such forward-looking statements are dependent upon a
certain number of factors and are subject to risks and uncertainties. Actual
results may differ from those expected. The information contained in this
press release is dated February 21, 2008, the date on which Management
approved the press release. Management does not assume any obligation to
update or revise any forward-looking statements, whether as a result of new
information or future events, except when required by the regulatory
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Denis Bertrand, Sigma Industries Inc., Chief
Executive Officer, (418) 780-3902, firstname.lastname@example.org; Bertrand
Côté, Sigma Industries Inc., Chief Financial Officer, (418) 780-3903,