MY 2 CENTS!sorry that i have not posted for awhile, as i have busy with gold and ree stocks, now that the debenture holders are on board at
.05 cents, it looks like its ready to go!
Hmmmmmmmmmmm
Sofame finally completed the conversion of debts as announced yesterday.
A 40% dilution may seem like a lot but this eliminates the need to pay out $2.5 million of cash from future profits and cuts over $150k per year of interest expense. There is another 10MM shares coming in a couple of weeks when they convert $500k of trade creditors included in the $2.5 million. This is a brilliant move by management. No recourse to the bankruptcy act was required as that would have set the company back 10 years and destroyed its reputation with the American customers and American investors. This had to be done now while the stock is at a low price
WOW!
Look who the new shareholders are. for the most part, the same people who invested $8 million into Sofame aver the last 3 years. educated and informed about Sofame ’s history, its products, are clearly committed to the company’s success. They believe this is a good time to invest. They obviously want to make back whatever profit that they gave up . hopefully they will do that and more. They are showing confidence in the competence and dedication of the management team including the Board.
it's really critical to recognize that Sofame did not have any orders in 2009. Yet with a skeleton staff in 2010 after cutting expenses by 60%, they managed to close $2.4 million in sales. A severe cash flow crunch was not enough to discourage them. clearly they are doing something different from a year ago.
The subsidiary in Chicago is a great move because we all know the “Made in America ” frenzy is entrenched in Washington while politicians are giving out billions in grant money for energy efficiency. This is a no brainer. As for the QED joint venture, obviously that was designed to raise funding for marketing and sales in the USA while Sofame was in a cash crunch. To my knowledge the million dollar loan that was supposed to come from QED has not materialized or we would have seen a press release. This has to be a disappointment for QED, because they were hoping to hook onto the Sofame gravy train, and now if they don’t deliver the cash they promised, their free ride will have to end. Sofame will continue to develop sales in the USA . Just the fact that Blake Equipment, one of the largest boiler reps in the USA took Sofame ’s product is a good sign. I had a look at their line card on their website – very powerful. Obviously the federal energy efficiency grant money is available in New England , and dealing with Sofame Energy made sense for them.
We see the word installation partners and “Turn-Key” showing up again in press releases also. I always knew and said publicly that Sofame had to move to the USA to be really successful. If they find a partner to install their equipment, the whole energy efficiency pitch will be easier for the end-users to buy. Once they know the equipment costs, the cost of installation and the annual savings, corporate CFO’s will make the call to buy Sofame ’s products, and the grants will be the icing on the cake, free money improving the ROI even further and reducing payback times.
soooooooo is it time to jump back in, i personally think so
do your own due diligence
herb