MONTREAL, Oct. 22, 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, is pleased to report that maturity of
the $250,000 bridge loan was extended to December 19th, 2013, by a 100
percent vote of the lenders.
After two years of improved profitability, the operations have become
attractive to new investors and lenders. New orders in-hand for the
Percofrac® mobile water heater are scheduled to ship in the current
quarter and in the new year. As part of a larger and more complex
financing deal, Sofame has negotiated a $3 million credit line with a
fund in New York to finance accounts receivable in the 2014 fiscal
year. More details will be announced in the coming weeks.
Under the new loan agreement, the existing first rank mortgage bond
represented by the bridge loan will be subrogated in favour of the new
loan and credit line which are to be secured by all assets of the
company. The new lenders have 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 October pending environmental and structural
evaluations. The existing mortgage will be repaid at the closing
expected in November.
According to John Gocek, Sofame's President & CEO, "The three financing
transactions coming together now, in what is the first quarter of our
2014 fiscal year, represent many months of delicate negotiations. We
are grateful to all the parties who believe in the value of Sofame's
past and future contributions to commercialization of industrial energy
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