MONTREAL, Nov. 19 /CNW/ - Sofame Technologies Inc. (TSX-V: SDW), a leading manufacturer of environmentally efficient industrial hot water systems and cost efficient heat recovery equipment, is advancing in discussions with several potential lenders and investors concerning the funding of sales and marketing initiatives as well as working capital required for growth and continuing operations. The corporation is working to secure financing of between $500,000 and $2 million via a private placement of common shares priced at $ 0.05 cents. Sofame is also in discussions with Invest-Quebec for a loan to finance sales and marketing costs as Sofame continues to develop the international market for its award winning industrial energy efficiency solutions. Among conditions of the loan, Sofame would have to raise $1.2 million in equity.
Sofame has in parallel negotiated a refinancing of its plant in Montreal. The mortgage proceeds will serve to provide liquidity and lower the mortgage interest rate by repaying two existing mortgage lenders. The mandate awarded by Sofame to Township Capital to structure a debt financing as previously announced on August 27th, 2009 has been hindered by pricing issues which have rendered that avenue more costly than originally expected.
John Gocek, COO of Sofame stated, "The funding activities are progressing, and success with the private placement will help secure the Quebec government's participation."
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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