Sofame Converts $ 740,337 of Current Liabilities to Common Shares
MONTREAL, April 27, 2012 /CNW Telbec/ - Sofame Technologies Inc. (TSXV: SDW), a leading manufacturer of environmentally efficient industrial water heaters and cost effective heat recovery systems for traditional boilers, announced that the TSX Venture Exchange has approved conversion of $ 740,337 of debts to 14,806,745 common shares. The transaction was originally submitted in January 2011 and announced in a press release dated January 18, 2011, and envisioned the conversion of $ 527,232 of debts to shares. The amount was increased by $213,105 when key management and others agreed to convert more debts at $0.05 cents per share. The conversion price is fixed at $0.05 cents per share according to the rules of the TSX Venture Exchange, and the new shares are subject to a mandatory 4-month hold period. As part of the conversion, 5,490,630 common share purchase warrants were issued entitling holders to acquire one additional common share of Sofame at an exercise price of $0.10 until April 27, 2014. After this conversion, there are currently 156,465,397 issued and outstanding common shares of Sofame.
According to John Gocek, Sofame's President and CEO, "This important concession by key suppliers and management reduces Sofame's current liabilities by about 30%, and improves the equity deficit on the balance sheet. Sofame expects to report another profitable quarter ending March 31. The foundation is in place to sell more heat recovery systems in 2012 and grow revenues profitably from now on."
Robert Presser, Chairman of Sofame's Board added, "Management is converting salaries to shares at $0.05 cents as a gesture of confidence in Sofame's imminent success. As stated at the AGM on March 30th, the Board has no plan to pursue a share rollback, as the predictable result would be a deterioration of value at the expense of current shareholders."
Sofame has confirmed six industrial energy efficiency and water heating contracts since August 2011 valued at $1.8 million dollars. Two projects are in the start-up phase, one is ready to ship, and three are in detailed engineering, and are expected to ship and start-up in the current fiscal year. Additional projects are in various stages of contract negotiation. New contracts will be announced as they are concluded.
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:
John Gocek
President & CEO
(514) 523-6545 x200
Stone Communication Services
Jason Stone
Franca Pranovi
(416) 867-2526
[email protected]
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