Reorganization plan ratified by the Superior Court of Québec
QUEBEC CITY, Aug. 4 /CNW Telbec/ - Sigma Industries Inc. ("Sigma" or the "Company") (TSX Venture Exchange: SIC) has announced that, in accordance with the Bankruptcy and Insolvency Act, the restructuring proposals filed on July 16, 2010 by Sigma and its subsidiaries René Composite Materials Ltd. and Transcam Composites Inc. have received the unanimous approval of its creditors and were also ratified by the Superior Court of Québec, which, at the same time, gave the company permission to reorganize, in the sense accorded to this term in Article 191 of the Canada Business Corporations Act.
Subject to the regulatory or TSX Venture Exchange approval, the authorised reorganization would essentially comprise: i) consolidation of Sigma capital stock already issued and outstanding, at a ratio of 4 to 1, such that the number of Sigma common shares in circulation be reduced from 42,899,095 to approximately 10,724,774; ii) cancellation of all options and stock purchase warrants outstanding; iii) issuing convertible debentures to a maximum capital amount of $1,000,000, convertible at any time within 5 years of issue of the first debentures, in whole or in part, in Sigma units after consolidation, each unit consisting of a common share at $0.10 and a warrant permitting the purchase of one common share of Sigma at $0.10 per share, the warrants to be exercised no later than the maturity date of the debentures.
This private investment will be undertaken by Consolidated Composites Industries (CCI) Inc., a corporation related to Sigma, whose senior executives, namely Denis Bertrand, Jean-François Doré and Bruno Doyon, are directors and shareholders.
"We would like to sincerely thank our suppliers, employees and financial partners for the unflagging support they have given to Sigma during these difficult times. This agreement will allow Sigma and its subsidiaries look to the future with renewed confidence," said Denis Bertrand, President and CEO of Sigma Industries.
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX-V: SIC), a leading composite and metal products manufacturer, has five operating subsidiaries and employs 350 people. The Company is active in the growing heavy-duty truck, coach, transit and bus, train and subway, machinery, agriculture, light forestry, and wind energy market segments. Sigma sells its products to original equipment manufacturers and distributors in the United States, Canada and Europe.
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 Sigma Industries Inc.
For further information: For further information: Denis Bertrand, President and Chief Executive Officer, Sigma Industries Inc., Phone: 418-484-5282, firstname.lastname@example.org