Sofame Technologies Inc SFMGF

PP CLOSED

[pronat]

Sofame Technologies completes $1.75 million issue MONTREAL, May 18, 2007 (Canada NewsWire via COMTEX News Network) -- Sofame Technologies Inc. (TSX Venture Exchange: SDW) is pleased to announce that it has closed its previously-announced private placement by issuing an aggregate of $1,750,000 of 10% unsecured convertible debentures in tranches of $50,000. Sofame issued the debentures to "accredited investors" resident in Quebec and Ontario. Notre-Dame Capital Inc. acted as lead agent for the private placement with Power One Capital Markets Ltd. joining the selling group. The net proceeds from the issue of the debentures will be added to Sofame's working capital and will be used for funding of current installation projects, including the recent mandate from Winnipeg Airport, purchasing of additional materials, hiring of additional professional and sales personnel, marketing and current obligations. The debentures bear interest at the rate of 10% per annum, payable quarterly in arrears and will mature on May 16, 2010. The principal amount of the first tranche of $1.5 million of 10% debentures is convertible into Sofame common shares at any time at the option of the holder at a conversion price of $0.10 per share until May 16, 2008, and thereafter at a price of $0.11 per share until maturity. The principal amount of the second tranche of $250,000 of 10% debentures is convertible into Sofame common shares at any time at the option of the holder at a conversion price of $0.135 per share until May 16, 2008, and thereafter at a price of $0.1485 per share until maturity. Each tranche of $50,000 of debentures was accompanied by 250,000 common share purchase warrants, each warrant entitling the holder thereof to acquire one additional common share of Sofame at an exercise price of $0.15 until May 16, 2009. In connection with the private placement, Sofame paid Notre-Dame Capital Inc. and PowerOne Capital Markets Ltd. a cash commission equal to 10% of the gross proceeds from the issue of the debentures and issued non-transferable broker warrants to Notre-Dame Capital Inc. and PowerOne Capital Markets Ltd. entitling them to purchase an aggregate of up to 3,935,185 common shares of Sofame at an exercise price equal to the conversion price of the debentures issued to the purchasers until May 16, 2009. All of the securities issued under the private placement are subject to a four-month hold period, expiring on September 17, 2007, in accordance with applicable securities laws and the policies of the TSX Venture Exchange. There are currently 63,414,161 issued and outstanding common shares of Sofame. About Sofame Technologies Inc. Sofame Technologies, a company based in Montreal, retains exclusive production and distribution rights on patented direct contact heat exchange systems, which were developed in collaboration with partners such as the Natural Gas Technologies Center, Gas Metro, Gas de France and Keyspan Energy of New York. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release. %SEDAR: 00005005E SOURCE: Sofame Technologies inc. Mr. Rami Shehabi, President & General Manager, [phone] ext. 333, [e-mail] Copyright (C) 2007 CNW Group. All rights reserved.