MONTREAL,
Oct. 22, 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,
is pleased to report that maturity of the $250,000 bridge loan was extended to December 19th, 2013, by a 100 percent vote of the
lenders.
After two years of improved profitability, the
operations have become attractive to new investors and
lenders. New orders in-hand for the Percofrac® mobile water
heater are scheduled to ship in the current quarter and in the new
year. As part of a larger and more complex financing deal,
Sofame has negotiated a $3 million
credit line with a fund in New
York to finance accounts receivable in the 2014 fiscal
year. More details will be announced in the coming weeks.
Under the new loan agreement, the existing first
rank mortgage bond represented by the bridge loan will be
subrogated in favour of the new loan and credit line which are to
be secured by all assets of the company. The new lenders have
agreed to allow Sofame to sell its plant in Montreal to a real estate investment fund and
leaseback its offices to reduce financing and operating
costs. Sofame has outsourced its manufacturing for the last
three years, and does not require in-house manufacturing
capabilities. The offer to purchase the building is being
finalized in October pending environmental and structural
evaluations. The existing mortgage will be repaid at the
closing expected in November.
According to John
Gocek, Sofame's President & CEO, "The three financing
transactions coming together now, in what is the first quarter of
our 2014 fiscal year, represent many months of delicate
negotiations. We are grateful to all the parties who believe
in the value of Sofame's past and future contributions to
commercialization of industrial energy efficiency."
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.
SOURCE Sofame Technologies Inc.