Press ReleaseSource: SOFAME TECHNOLOGIES INC.On Monday January 4, 2010, 2:01 pm
MONTREAL, Jan. 4 /CNW/ - Sofame Technologies Inc. (TSX-V: SDW - News), a leadingmanufacturer of environmentally efficient industrial hot water systems andcost efficient heat recovery equipment, announces that is has closed on themortgage refinancing of its plant in Montreal. Net mortgage proceeds have beendisbursed to meet critical short-term requirements of the company in order tocontinue operations. The funds were insufficient to meet the demands of all ofSofame's creditors and the company requires new equity or project financing inorder to remain viable.
The corporation continues to seek financing of between $500,000 and $2million via a private placement of common shares at
.05 per share. Sofame isalso in discussions with Soffimat for a credit facility to fund future orders.The corporation is hopeful that these negotiations can be concluded swiftlyand that the terms can be announced early in 2010.
Several significant events occurred in the past week concerning Sofame'smanagement and governance team. Michel Brisson, the President and CEO haschosen to resign his position and his responsibilities will be assumed by JohnGocek, COO, who was Sofame's CEO until earlier this year. Sofame thanks Mr.Brisson for his efforts, and wishes him success in his future endeavors.
Sofame's board of directors is planning to call an extraordinary meetingof shareholders in order to restructure the board of directors to meet thegovernance requirements of the corporation. This meeting is expected to beheld in mid-February 2010 and additional information will be forthcoming.
On an interim basis, Notre Dame Capital, Sofame's financial advisor, hasexercised the right in its contract to nominate two new board members toreplace Mr. Richard Groome and Mr. Hubert Marleau who stepped down in October2009. Mr. Pierre Guilbault of St. Lambert, Quebec is a chartered accountantwith over 20 years of operating experience in manufacturing companies, mostrecently as Executive Vice President and Managing Director of Metra Aluminum,a producer of extruded aluminum products. Mr. Guilbault brings the boardsignificant experience in mergers and acquisitions, restructuring andoperations management.
Mr. Andr? Nadeau of Blainville, Quebec runs several manufacturingcompanies, notably Carbotech International, a manufacturer of conveying andhandling equipment for the pulp and paper industry. He is directly involved inthe sales and operational management of his companies and has extensiveexperience in the integration of acquisitions including their financing.
Both Mr. Guilbault's and Mr. Nadeau's appointments to the board areprovisional to their acceptance of their nominations and the filing ofPersonal Information Forms (PIF) with the TSX-V. They will meet with Mr. Gocekin the New Year to be fully briefed on current conditions at Sofame.
Sofame intends to exhibit at the AHR Expo in Orlando, Florida fromJanuary 25th to 27th 2010 and looks forward to meeting its existing and futureclients at the show. Clients and interested parties may contact thecorporation for more detailed information.
The current economic context of difficult financing conditions formicrocap companies and low natural gas prices has made operating conditionsdifficult for Sofame, like other companies operating in the heat recoverymarketplace. Sofame's wishes to assure its employees, suppliers and clientsthat it is pursuing all financing options to remain in operation and willreport on new developments as they arise. In the meantime, Sofame appreciatesthe patience and support it has received from its stakeholders.
About Sofame
Sofame Technologies Inc. custom engineers and manufactures unique,high-efficiency direct-contact industrial hot water systems which extract upto 99 percent of heat from flue gases depending on the application, and returnthe energy in the form of high-temperature hot water or pre-heated make-upair. Sofame's products help hospitals, food processing plants, universities,central heating plants, utilities and many more large energy consumers tosignificantly reduce fuel costs and greenhouse gas emissions. Usingworld-leading, patented green technology, Sofame serves industrial,institutional and commercial markets through a network of dedicatedengineering representatives. For more information, visit www.sofame.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (asthat term is defined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.
For further information
Stone Communication Services, Brian Edelstein,(416) 867-2536, briane@stoneco.com, www.stoneco.com