SAINT-ÉPHREM-DE-BEAUCE, QC, Dec. 12, 2013 /CNW Telbec/ - Sigma Industries Inc. ("Sigma" or the "Company") (TSXV: SSG) is pleased to announce its completion on December 11, 2013 of a private placement of a loan and secured convertible debentures for a principal amount of $1,075,000.
This private placement will consist of: (i) a loan of $800,000 for a term of eight years, bearing interest at an annual rate of 10%, payable quarterly, and convertible at any time during the five years following its disbursement, in whole or in part, into common shares of Sigma, at a price of $0.05 per share for an initial amount of $500,000 during the first year of the loan and $0.10 per share for the balance during the five years following disbursement; and (ii) five-year debentures totalling an amount of $275,000, bearing interest at an annual rate of 10%, payable quarterly, and convertible at any time, in whole or in part, into common shares of Sigma at a price of $0.10 per share. Of this principal amount, $175,000 was purchased by insiders.
Net proceeds from the placement will be used to increase the Company's working capital.
This private placement remains subject to final approval by the TSX Venture Exchange.
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX-V: SSG), a manufacturing company specializing in the production of composite components, has four operating subsidiaries and employs 400 people. The Company is active in the heavy-duty truck, coach, transit, machinery and wind energy markets. 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.
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Sigma Industries Inc.
President and Chief Executive Officer