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Common Shares to be Qualified Investments Under Quebec Stock Savings Plan
II (REA II)
MONTREAL, April 29 /CNW Telbec/ - Sofame Technologies Inc. ("Sofame")
(SDW: TSX Venture Exchange), a leading manufacturer of energy efficient
commercial-industrial hot water heating and waste heat recovery equipment, is
pleased to announce that it has appointed Desjardins Securities Inc.
("Desjardins"), on a best efforts basis, as lead agent for a prospectus
offering of common shares for gross proceeds of up to $5,000,000 (the
"Offering"). Loewen, Ondaatje, McCutcheon Limited will act as co-manager for a
The Offering will be priced in the context of the market at the time of
the filing of the final short form prospectus. The common shares to be issued
will be qualified investments under the province of Québec's
recently-implemented Quebec Stock Savings Plan II (REA II) and, as such, will
entitle the subscribers thereof to a Quebec income tax deduction.
Sofame will also grant Desjardins an over-allotment option to purchase
from Sofame, up to an additional $750,000 of common shares, representing 15%
of the total number of common shares that may be issued under the offering, at
the issue price fixed in the final prospectus, at any time during the 30-day
period following the closing of the offering. If the over-allotment option is
exercised in full, the gross proceeds from the proposed offering will be $5.75
Sofame will use the net proceeds from the offering to intensify marketing
activities, hire sales and engineering staff, for working capital and general
corporate purposes as well as to work with its partners in Sofame Carbon to
complete the Sofame energy efficiency protocol and begin certifying carbon
credits for existing customer installations.
In connection with the offering, Sofame will pay Desjardins a cash
commission equal to 7% of the gross proceeds raised pursuant to the offering
and issue broker warrants to Desjardins, entitling it to purchase, at the same
issue price fixed in the final prospectus for 24 months from the closing of
the offering, a maximum number of additional common shares equal to 7% of the
aggregate number of common shares sold in the offering.
The offering is subject to receipt of all necessary corporate and
regulatory approvals, including that of the TSX Venture Exchange and the
Autorité des marches financiers, and to the signing of an agency agreement.
There are currently 87,434,000 common shares of Sofame issued and
SOFAME Technologies Inc. custom engineers and manufactures unique,
high-efficiency direct-contact heat recovery and hot water heating systems.
Sofame's products extract up to 99% of heat from flue gases depending on the
application, and also from wastewater, and return the energy in the form of
high temperature hot water or pre-heated make-up air. In addition to
economically recovering heat from waste energy, Sofame's products also help
customers significantly reduce greenhouse gas and NOX emissions and qualify
for carbon offsets and CDM credits. Using world leading, patented green
technology, Sofame serves building owners, institutional, industrial and
commercial markets through a network of dedicated engineering representatives.
About Desjardins Group
Desjardins Group (www.desjardins.com) is the largest cooperative
financial group in Canada, with overall assets of $152 billion, as at December
31, 2008. It comprises a network of caisses, credit unions and business
centres in Québec and Ontario, and some twenty subsidiary companies in life
and general insurance, securities brokerage, venture capital and asset
management, many of which are active across the country. Drawing on the
expertise of its 42,000 employees and the commitment of its 6,300 elected
officers, Desjardins offers its 5.8 million individual and corporate members
and clients a full range of financial products and services. Its physical
distribution network is complemented by leading-edge virtual access methods.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act"), or any state securities
laws and may not be offered or sold within the United States or to United
States Persons unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is available.
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.
For further information:
For further information: Stone Communication Services: Brian Edelstein,
(416) 867-2536, firstname.lastname@example.org; www.stoneco.com