MONTREAL, Jan. 7, 2013 /CNW Telbec/ - Sofame Technologies Inc. (TSXV:
SDW), (OTC.PK: SFMGF) a leading manufacturer of environmentally
efficient industrial water heaters and cost effective heat recovery
systems for traditional boilers, has received a five month extension
from bridge loan investors, underscoring their support of Sofame's
performance to date. The amended maturity date is May 29, 2013 while
all other terms of the bridge loan remain unchanged.
Since its decisive turn-around in 2012, Sofame continues to close new
orders, deliver existing contracts and operate profitably with low
overhead costs. Sofame will release audited annual financial statements
and management's discussion and analysis of the 2012 fiscal year by the
end of January 2013.
Since the press release of July 3, 2012, Sofame has received
encouragement from investors to pursue a plan to acquire profitable
companies manufacturing and selling complementary products in the same
HVAC sector as Sofame. The company is in ongoing negotiations to
refinance the bridge loan and other short term obligations with
long-term debt at a reasonable interest rate.
As mentioned in a press release on December 10, 2012, the company is
currently raising $85,000 to close-out its $250,000 immediate funding
objective via the issue of a non-brokered private placement of units at
a price of $0.02 per unit comprised of one common share and a
twelve-month purchase warrant for half of one common share at $0.05
cents. Proceeds of the funding are being applied to specific
outstanding trade debts, interest, taxes and government liabilities.
The private placement is subject to the TSX Venture Exchange's Notice
to Issuers dated August 17, 2012, regarding Temporary Relief from
Certain Pricing Requirements.
According to John Gocek, Sofame's President & CEO, "The literal bottom
line is that, in 2009, at the peak of the recession Sofame lost 3.3
million dollars. In 2010, another $1.6 million, and in 2011 $ 935,000.
Now in 2012 we expect to report a net profit of about $ 120,000 or
roughly 6 percent of sales. We plan to grow revenues profitably in 2013
because the product is outstanding, and expenses remain 90 percent
lower than 3 years ago."
The trend is positive, yet Sofame's management believes the general lack
of funding in the economy has persistently undermined the company's
potential and actual performance. Sofame has been prudently managing
its cash flow situation while attempting to enlist support from
traditional lenders. For example, in October 2012, the Center of
Excellence in Energy Efficiency (C3E) informed Sofame of its decision
to cancel disbursement of a $301,500 loan which was announced in a
joint press release on July 19, 2011. The loan was meant to finance
marketing in the USA for Sofame's award winning Canadian products, as
well as development of a sophisticated design software in partnership
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