Sofame receives bridge loan extension to May 29th, underscoring investor support of financial performance
Profits, Modest Refinancing, and Acquisitions Form the 2013 Growth Strategy
MONTREAL, January 15, 2013 - Sofame Technologies Inc. (TSXV: SDW), (OTC.PK: SFMGF) has successfully 'right-sized' its operations to generate modest quarterly profits. Since its decisive turn-around in 2012, Sofame continues to close new orders, deliver existing contracts and operate profitably with low overhead costs. Sofame will release audited annual financial statements and management's discussion and analysis of the 2012 fiscal year by the end of January 2013. During fiscal 2012, Sofame received seven firm purchase orders totalling $ 2.4 million consisting of two from poultry and pork processors in North Carolina and Vallée Jonction, Quebec, two from major hospital new construction projects in Montreal and Augusta, Maine, one from a College in Colorado, one from a yeast producer in Montreal, and one from a multinational pharmaceutical manufacturer headquartered in Manhattan, NY.
According to John Gocek, Sofame's President & CEO, "We plan to grow revenues profitably in 2013 because the product is outstanding, and expenses remain 90 percent lower than 3 years ago. The literal bottom line is that, in 2009, at the peak of the recession Sofame lost 3.3 million dollars. In 2010, another $1.6 million, and in 2011 $ 935,000. Now in 2012 we expect to report a net profit of about $120,000 or roughly 6 percent of sales."
Since the press release of July 3, 2012, Sofame has received encouragement from investors to pursue a plan to acquire profitable companies manufacturing and selling complementary products in the same HVAC sector as Sofame. This encouragement includes a letter of intent to facilitate US$ 27 million in debt financing to pursue leveraged buy-outs of appropriate target companies. Negotiations with three targets are currently underway and have been in the works for 18 months. The company is also in ongoing negotiations to refinance the bridge loan and other short term obligations with long-term debt at a reasonable interest rate.
As mentioned in a press release on December 10, 2012, the company is currently raising $85,000 to close-out its $250,000 immediate funding objective via the issue of a non-brokered private placement of units at a price of $0.02 per unitcomprised of one common share and a twelve-month purchase warrant for half of one common share at $0.05 cents. Proceeds of the funding are being applied to specific outstanding trade debts, interest, taxes and government liabilities. The private placement is subject to the TSX Venture Exchange's Notice to Issuers dated August 17, 2012, regarding Temporary Relief from Certain Pricing Requirements.
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Sofame Reduces CO2 Emissions and Fuel Bills:
Power Generation Applications
 | | LNG Terminal using a GE Turbine, Montoire de Bretagne, France |
An exciting new opportunity for Sofame is the way that direct contact technology has been applied to electric power generation. The U.S. electricity market is the world's largest, comprising one-fifth of both global demand and power plant capacity.
With natural gas prices at historic lows compared to all other fuels, many utilities are converting to gas-fired turbines which are about 40% efficient. In a well-run power plant generating electricity, steam and cooling for air conditioning, co-generation brings efficiency up to 70%. Sofame can take that number up to 99% if there is a need and a use for hot water at 135ºF. The potential additional fuel savings of 29% represent a corresponding reduction in CO2 emissions.
Today, institutions, universities, hospitals and industrial plants are also opting to generate their own electricity due to the availability of clean-firing gas turbines. This trend led Siemens and Alstom to build gas turbine plants in the United States to meet the demand. Since the demand for electricity is ever on the rise, Sofame's direct contact heat recovery technology can cost-effectively help reduce the impact on the atmosphere. |
| So Energy Efficient. Sofame. |
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