MONTREAL, Jan. 4 /CNW/ - Sofame Technologies Inc. (TSX-V: SDW), a leading manufacturer of environmentally efficient industrial hot water systems and cost efficient heat recovery equipment, announces that is has closed on the mortgage refinancing of its plant in Montreal. Net mortgage proceeds have been disbursed to meet critical short-term requirements of the company in order to continue operations. The funds were insufficient to meet the demands of all of Sofame's creditors and the company requires new equity or project financing in order to remain viable.
The corporation continues to seek financing of between $500,000 and $2 million via a private placement of common shares at $0.05 per share. Sofame is also in discussions with Soffimat for a credit facility to fund future orders. The corporation is hopeful that these negotiations can be concluded swiftly and that the terms can be announced early in 2010.
Several significant events occurred in the past week concerning Sofame's management and governance team. Michel Brisson, the President and CEO has chosen to resign his position and his responsibilities will be assumed by John Gocek, COO, who was Sofame's CEO until earlier this year. Sofame thanks Mr. Brisson for his efforts, and wishes him success in his future endeavors.
Sofame's board of directors is planning to call an extraordinary meeting of shareholders in order to restructure the board of directors to meet the governance requirements of the corporation. This meeting is expected to be held in mid-February 2010 and additional information will be forthcoming.
On an interim basis, Notre Dame Capital, Sofame's financial advisor, has exercised the right in its contract to nominate two new board members to replace Mr. Richard Groome and Mr. Hubert Marleau who stepped down in October 2009. Mr. Pierre Guilbault of St. Lambert, Quebec is a chartered accountant with over 20 years of operating experience in manufacturing companies, most recently as Executive Vice President and Managing Director of Metra Aluminum, a producer of extruded aluminum products. Mr. Guilbault brings the board significant experience in mergers and acquisitions, restructuring and operations management.
Mr. André Nadeau of Blainville, Quebec runs several manufacturing companies, notably Carbotech International, a manufacturer of conveying and handling equipment for the pulp and paper industry. He is directly involved in the sales and operational management of his companies and has extensive experience in the integration of acquisitions including their financing.
Both Mr. Guilbault's and Mr. Nadeau's appointments to the board are provisional to their acceptance of their nominations and the filing of Personal Information Forms (PIF) with the TSX-V. They will meet with Mr. Gocek in the New Year to be fully briefed on current conditions at Sofame.
Sofame intends to exhibit at the AHR Expo in Orlando, Florida from January 25th to 27th 2010 and looks forward to meeting its existing and future clients at the show. Clients and interested parties may contact the corporation for more detailed information.
The current economic context of difficult financing conditions for microcap companies and low natural gas prices has made operating conditions difficult for Sofame, like other companies operating in the heat recovery marketplace. Sofame's wishes to assure its employees, suppliers and clients that it is pursuing all financing options to remain in operation and will report on new developments as they arise. In the meantime, Sofame appreciates the patience and support it has received from its stakeholders.
Sofame Technologies Inc. custom engineers and manufactures unique, high-efficiency direct-contact industrial hot water systems which extract up to 99 percent of heat from flue gases depending on the application, and return the energy in the form of high-temperature hot water or pre-heated make-up air. Sofame's products help hospitals, food processing plants, universities, central heating plants, utilities and many more large energy consumers to significantly reduce fuel costs and greenhouse gas emissions. Using world-leading, patented green technology, Sofame serves industrial, institutional and commercial markets through a network of dedicated engineering representatives. For more information, visit www.sofame.com.
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SOURCE Sofame Technologies Inc.
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