SAINT-ÉPHREM-DE-BEAUCE, QC, Sept. 17, 2013 /CNW Telbec/ - Sigma Industries Inc. (TSXV: SSG), a manufacturing company specialized in the fabrication of composite products, announces that it has accepted a conditional agreement to sell the inventories, the property, plant and equipment and the business unit of its PNS Tech division for an amount of $2,000,000.
The sale price involves a cash payment of $1,690,000 and compensation for $310,000 in convertible debentures issued by Sigma Industries Inc. The transaction is expected to close on, or around October 1, 2013, and will result in an estimated gain of $200,000, which will be recorded in the results for the Company's fiscal 2014 second quarter. The cash received by the Company will be used to pay down bank loans and secured long-term debt in order to release the assets sold from the security interest.
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX-V: SSG), a manufacturing company specializing in the production of composite and metal components, has four operating subsidiaries and employs 400 people. The Company is active in the heavy-duty truck, coach, transit, machinery, agriculture, and wind energy markets. Sigma sells its products to original equipment manufacturers and distributors in the United States, Canada and Europe.
This press release contains certain forward-looking statements about the Company. Such forward-looking statements are dependent on a number of factors and are subject to risks and uncertainties. Actual results may differ from those expected. The information contained in this press release is dated September 17, 2013, the date on which management approved the press release. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except as required by law.
Neither the 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.
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Sigma Industries Inc.
President and Chief Executive Officer