MONTREAL,
Nov. 6, 2013 /CNW Telbec/ - Sofame
Technologies Inc. (TSXV: SDW) (OTC: SFMGF), a leading manufacturer
of environmentally efficient industrial water heaters and cost
effective heat recovery systems for traditional boilers, has
concluded a senior secured revolving credit facility agreement of
up to US$ 3,000,000 with TCA Global
Credit Master Fund, LP. Under the credit agreement, advances
bear interest at the rate of 12% per annum and are secured by all
assets of the company. An initial disbursement of a
$ 400,000 note was completed on
September 23, 2013 and the use of
proceeds is for working capital. Additional disbursements will
serve to finance future growth of accounts receivable as Sofame
pursues its business development plan in 2014. Revenue growth
in 2014 is expected to come from sales of the new 99% efficient 10
and 30 million BTU frac heaters, sales of Sofame's core industrial
energy efficiency systems, and incremental revenues from the
acquisition of compatible companies in the HVAC field.
According to John
Gocek, Sofame's President & CEO, "We are pleased that
TCA Global has decided to take on the role of financing for growth,
which has been neglected for several years by most traditional
lenders including banks. This secured revolving note facility
serves three essential purposes, namely, access to cash to finance
orders in hand, tangible working capital support in the event we
acquire other niche firms in our field, and safekeeping of all of
our intellectual property developed over the last twenty-five
years."
As part of the new loan agreement, the existing
first rank mortgage bond securing the $
250,000 bridge loan will be subrogated in favour of the new
note and credit line. The TCA Global Fund has 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 November pending environmental and structural
evaluations. The existing mortgage capital and interest will
be repaid at the closing.
The TSX Venture Exchange has conditionally
approved the issuance of 800,000 bonus shares at $ 0.05 cents under a fee agreement negotiated
between TCA Global Master Fund and Sofame. An additional
800,000 bonus shares will be submitted for TSX Venture Exchange
approval when the $ 400,000 loan
maturity is extended. After the current issue of 800,000
bonus shares, there will be currently 188,265,397 common shares
outstanding.
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About TCA Fund Management Group:
TCA Fund Management Group (www.trafcap.com) is
Investment Manager for TCA Global Credit Master Fund L.P. and acts
as advisor to many small companies from offices in the United States, United Kingdom, and Australia. TCA is a short duration, absolute
return fund specializing in senior-secured lending to small, mainly
listed companies in the U.S., Canada, Western
Europe, and Australia. The
team has extensive domestic and cross-border credit expertise,
long-standing experience with funding innovations, which is
reflected in the volume of transactions completed. The fund is a
specialist business with an investment approach that fills an
important finance gap in many leading markets.
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.