Sofame Energy Recovery Masthead

Sofame Customer News 

(TSXV: SDW), (OTC.PK: SFMGF)

June 2013
In This Issue
Sofame Confirms Over $1 Million of New Orders
Comments on the Second Quarter Ended March 31, 2013
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www.sofame.com

200 GW of Energy Wasted

Editor's Message

Welcome to our latest issue of Energy Recovery News - focused on ways you and facilities managers around the globe are recapturing energy to reduce utility bills, CO2 and NOx emissions. Please let us know what you think of this issue and how we can help better serve you.
  
It has been four months since our last newsletter.  That is because Management has been busy pursuing new contracts, as well as re-financing of current liabilities, following filing of the 2012 Annual Report which demonstrated profits and positive cash flow.

 

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Sofame Confirms over $1,000,000 of New Orders
  

MONTREAL, June 17, 2013 - Sofame Technologies Inc.  (TSXV: SDW) (OTC.PK: SFMGF) a leading manufacturer of environmentally efficient industrial water heaters and cost effective heat recovery systems for traditional boilers, is pleased to announce confirmation of new orders totaling over $ 1,000,000.  The Jewish General Hospital in Montreal has ordered a second Percotherm heat recovery system for its new expansion project. 

 

In a new development of strategic importance to the Company, several Percomax systems have been ordered from western Canada to be used in the fracking process for extracting natural gas.  The Sofame Percomax water heater offers up to 100% fuel to water efficiency compared to other systems.  The Sofame Percomax is also controlled by a state-of-the-art control panel with remote monitoring capabilities which offer added value in remote field operations.

            
For further information:                                 Stone Communication Services

 

John Gocek                                                           Jason Stone

President & CEO                                                   (416) 867-2526

(514) 523-6545 x200                                             jasons@stoneco.com

 

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.     

 
Comments on the Second Quarter Ended March 31, 2013
  

Over the last four years, Sofame has adapted to challenging market conditions which included low natural gas prices due to fracking supplies, tight capital investment budgets at end-users, and an absence of bank financing in the normal course of business. Sofame undertook extensive cost reductions, and began a program of outsourcing in 2011. The new business model allowed the company to cut overhead, incur costs only when contracts are in production, and pursue more projects simultaneously. Closing seven orders values at $2.4 million was a significant achievement in 2012.

 

It is Management's opinion that the current order book does not reflect the marked improvement in demand for the Company's custom engineered industrial energy efficiency products. Ten projects are being pursued presently with a total value exceeding $4.6 million. Four of these projects are close to fruition. In the first quarter of calendar 2013, well head gas prices recovered from about $3.25/DT to over $4.25, a gain of 30%. Interest in natural gas as a fuel is driving up the prices, and two-year paybacks on energy efficiency investments has become the norm for Sofame's industrial water heating solutions. These results are better than expected compared to the past several years of history.

 

Sofame's operations are now running smoothly, and marketing in the United States is accelerating since we have installed projects in New York, New Jersey, Illinois, Michigan, Delaware, Colorado, North Carolina and Maine. The company has identified new key suppliers to complete design, engineering, fabrication, installation and start-up phases of its work. Through experience in the field, the team has retained the best partners and strives to supply products which meet expectations and budgets. The Company is encouraged by the year's results so far and is striving to close more orders and generate consistent revenues and profits with a larger volume of contracts.  

 


So Energy Efficient. Sofame.