Sofame Issues Guidance for 2013

MONTREAL, July 8, 2013 /CNW Telbec/ - Sofame Technologies Inc. (TSXV: SDW) (OTC: SFMGF) a leading manufacturer of environmentally efficient industrial water heaters and cost effective heat recovery systems for traditional boilers, is pleased to announce that four orders scheduled to be completed in September are expected to result in total annual revenues of approximately $ 2,000,000 for the fiscal year ending September 30th, 2013, compared to revenues of $ 1,802,080 in 2012.  Gross profit margin on sales and net profit are expected to be in line with the prior year.

"A Percomax® industrial water heater specially re-designed for use in the fracking industry is an exciting new development for Sofame," according to John Gocek, President and CEO.  Gocek added, "We expect sales of these units to comprise a significant share of revenues in 2014."

In other developments, Sofame is negotiating with U.S lenders for a $3 million revolving credit line to finance accounts receivable, and certain trade payables related to confirmed orders to deliver Sofame heat recovery systems and equipment.  Sofame is also negotiating with real estate investors to sell and leaseback its plant in Montreal.  Proceeds from the building sale would be used to repay various longstanding debts.  Financing activities became effective in 2013 after Sofame reported net profit in 2012 and EBITDA of $581,319, versus negative (- $ 504,590) in 2011.

Sofame raised $430,000 over the last ten months in two non-brokered private placements with accredited investors through the issue of units at a price of $0.02 per unit. One private placement was announced in September 2012 and the other in May 2013.  The private placements are subject to the TSX Venture Exchange's Notices to Issuers dated August 17, 2012, and April 12, 2013, regarding Temporary Relief from Certain Pricing Requirements until August 31, 2013.  Sofame is currently seeking $70,000 from accredited investors to close the second private placement, and achieve the $500,000 maximum limit allowed by the TSX Venture Exchange under the pricing exemptions which expire next month.

Regarding future orders, Gocek said, "Sofame continues to work on designs and engineering for major food processors, pharmaceutical manufacturers, universities and hospitals for over a dozen industrial heat recovery and water heating projects, representing potentially over $4 million in new orders through 2014, excluding sales of the new frac heater next year."

The Annual General and Special Meeting of the Shareholders has been postponed to Friday, August 23rd, 2013.  The additional time is intended to allow progress on Sofame's acquisition strategy, which was announced in 2012, before the shareholder meeting.  "Sofame's previously announced plan to complete at least one of the three targeted acquisitions in the 2013 fiscal year is on track," according to Gocek.

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:

John Gocek
President & CEO
(514) 523-6545 x200

Stone Communication Services
Jason Stone
(416) 867-2533

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