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 efficiency."
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SOURCE: Sofame Technologies Inc.
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