MONTREAL, Jan. 7, 2013 /CNW Telbec/ - Sofame Technologies Inc. (TSXV: SDW), (OTC.PK: SFMGF) a leading manufacturer of environmentally efficient industrial water heaters and cost effective heat recovery systems for traditional boilers, has received a five month extension from bridge loan investors, underscoring their support of Sofame's performance to date. The amended maturity date is May 29, 2013 while all other terms of the bridge loan remain unchanged.
Since its decisive turn-around in 2012, Sofame continues to close new orders, deliver existing contracts and operate profitably with low overhead costs. Sofame will release audited annual financial statements and management's discussion and analysis of the 2012 fiscal year by the end of January 2013.
Since the press release of July 3, 2012, Sofame has received encouragement from investors to pursue a plan to acquire profitable companies manufacturing and selling complementary products in the same HVAC sector as Sofame. The company is in ongoing negotiations to refinance the bridge loan and other short term obligations with long-term debt at a reasonable interest rate.
As mentioned in a press release on December 10, 2012, the company is currently raising $85,000 to close-out its $250,000 immediate funding objective via the issue of a non-brokered private placement of units at a price of $0.02 per unit comprised of one common share and a twelve-month purchase warrant for half of one common share at $0.05 cents. Proceeds of the funding are being applied to specific outstanding trade debts, interest, taxes and government liabilities. The private placement is subject to the TSX Venture Exchange's Notice to Issuers dated August 17, 2012, regarding Temporary Relief from Certain Pricing Requirements.
According to John Gocek, Sofame's President & CEO, "The literal bottom line is that, in 2009, at the peak of the recession Sofame lost 3.3 million dollars. In 2010, another $1.6 million, and in 2011 $ 935,000. Now in 2012 we expect to report a net profit of about $ 120,000 or roughly 6 percent of sales. We plan to grow revenues profitably in 2013 because the product is outstanding, and expenses remain 90 percent lower than 3 years ago."
The trend is positive, yet Sofame's management believes the general lack of funding in the economy has persistently undermined the company's potential and actual performance. Sofame has been prudently managing its cash flow situation while attempting to enlist support from traditional lenders. For example, in October 2012, the Center of Excellence in Energy Efficiency (C3E) informed Sofame of its decision to cancel disbursement of a $301,500 loan which was announced in a joint press release on July 19, 2011. The loan was meant to finance marketing in the USA for Sofame's award winning Canadian products, as well as development of a sophisticated design software in partnership with Autodesk®.
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SOURCE: SOFAME TECHNOLOGIES INC.
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