MONTREAL, Feb. 18 /CNW/ - Sofame Technologies Inc. (TSX-V: SDW), a leading manufacturer of environmentally efficient industrial hot water systems and cost efficient heat recovery equipment, reports on developments at the company in accordance with Policy 12-203 - Cease Trade Orders for Continuous Disclosure Default. Under an extension of the January 28, 2010, filing deadline granted by Quebec's Autorité des marchés financiers, Sofame must file its audited annual financial statements, management discussion and analysis ("MD&A") and CEO and CFO certifications for the year ended September 30, 2009, by April 5th, 2010. A Management Cease Trade Order will remain in effect until the filing requirements are met. In the event the audit is not completed within the delay, a general Cease Trade Order will be imposed. Since the current MCTO applies only to management and insiders, all other parties are permitted to freely trade in Sofame's shares.
Sofame is pleased to report that the audit is progressing normally. As mentioned in a press release on January 21, 2010, Sofame is seeking a bridge loan to fund continuing operations and sustain efforts to convert Sofame's sales funnel of industrial energy efficiency projects into confirmed purchase orders. During the last two weeks, the objective of $175,000 was exceeded by $15,000, so the maximum bridge loan amount has been increased to $250,000. Closing is expected during the week of February 22nd as soon as all conditions are met. Holders of the existing convertible debentures totalling $1,525,000 have voted unanimously to approve securing the new bridge loan with all the assets of the company. Discussions with existing debenture holders about security and terms of conversion of debentures to equity are ongoing, and are subject to approval by the TSX Venture Exchange.
John Gocek, Sofame's acting CEO stated, "The restructuring of Sofame's finances coupled with drastic cost-cutting measures are positive developments. Sofame continues to design, sell and manufacture custom engineered heating systems in spite of current challenges. Rising natural gas prices and stronger demand are positive indicators in 2010."
As mentioned in another press release on February 11th, 2010, Sofame has joined forces with Pacific Financial Resources of Marina del Rey, California, (www.pacificfinancialco.com) to facilitate to sell renewable energy in the form of hot water produced by Sofame's highly efficient equipment under Power Purchase Agreements. Through energy purchase agreements, food processing, industrial, institutional and government customers in the United States can reduce costs through energy efficiency without the burden of investing upfront capital.
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.
SOURCE Sofame Technologies Inc.
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