MONTREAL, Aug. 27 /CNW Telbec/ - Sofame Technologies Inc. (TSX-V: SDW), a
leading manufacturer of environmentally efficient industrial hot water systems
and cost efficient heat recovery equipment, has entered into negotiations with
Township Capital Inc. The corporation is working to secure a bridge financing
between $1 million and $2 million in order to fund current working capital
needs and to support its continuing sales and marketing initiatives while the
corporation evaluates its medium-term financing options.
Since Sofame withdrew its $5 million prospectus filing on July 23, 2009,
the corporation has pursued its aggressive sales and marketing strategy in an
attempt to boost revenues. Sofame's immediate objective is to convert bids to
purchase orders. In the event revenue growth is slow to materialize, financing
the sales and marketing strategy will require sufficient investment in working
capital. Investors and lenders generally require a firm order backlog as
confirmation that Sofame's industrial energy efficiency product line will
generate positive cash flow.
Management and the Board are committed to supporting the company, its
operations and its customers.
About Township Capital
Township Capital Inc. is a corporate finance consultancy founded in 2004
to focus on early stage companies. Headed by Mazen Haddad, Township Capital
maintains two tracks of business; first, it is the exclusive service provider
for the Palos Capital Pool LP where it provides all of the analysis and
administration, second Township Capital structures debt and equity financings
for emerging companies through its extensive network of funding partners.
Sofame Technologies Inc. custom engineers and manufactures unique,
high-efficiency direct-contact industrial hot water systems which extract up
to 99 percent of heat from flue gases depending on the application, and return
the energy in the form of high-temperature hot water or pre-heated make-up
air. Sofame's products help hospitals, food processing plants, universities,
central heating plants, utilities and many more large energy consumers to
significantly reduce fuel costs and greenhouse gas emissions. Using
world-leading, patented green technology, Sofame serves industrial,
institutional and commercial markets through a network of dedicated
engineering representatives. For more information, visit www.sofame.com.
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.
For further information:
For further information: Brian Edelstein, Stone Communication Services,
(416) 867-2536, email@example.com; www.stoneco.com