MONTREAL, August 29, 2013 -Sofame Technologies Inc. (TSXV: SDW) (OTC: SFMGF) has reported net sales of $ 520,606 for Q3 ended June 30th of the 2013 fiscal year ending September 30, 2013, a net profit of $ 23,453 and EBITDA of $ 128,077 (24.6%) for the period.
Q3 2013 Net Sales of $ 520,606 compared to $ 431,429 in Q3 2012, and $ 251,236 in Q2 2013
Q3 2013 Gross Profit of $ 173,658 (33.4%) compared to $ 139,425 (32.3%) in Q3 2012
Q3 2013 Net Profit (Loss) was $ 23,453 (4.5%) compared to ($ 33,950) (-7.9%) in Q3 2012
Q3 2013 EBITDA was $ 128,077 (24.6%) versus $ 177,921 (34.2%) in Q3 2012
Net sales totaled $ 520,606 in the period. This represents an increase of $ 89,177 (20.7%) from the same period in 2012 and 107% more than sales of $ 251,236 in the previous quarter. All revenues were derived from engineering services and shipments of heat recovery equipment to Canadian and American customers.
Engineering on a hospital expansion project in Montreal is continuing and the Company was installing a heat recovery system at a pharmaceutical plant in Montreal. Several new frac heater units for shale gas extraction applications were also under construction.
There were two developments regarding financing in the third quarter of fiscal 2013. In May 2013, the Company signed a Letter of Intent with a lender in New York for a $ 3 million revolving line of credit to be secured by all assets of the Company. The first disbursement of $400,000 is expected to occur in September 2013.
In June 2013, the Company entered into an agreement with a real estate investment fund to sell and leaseback its plant and offices in Montreal. Proceeds of the sale would be used to repay the existing mortgage and also to repay the $250,000 capital due under the bridge loan. The bridge loan maturity was extended by consent of the investors to September 25, 2013.
The Company is attempting to reach the $500,000 ceiling for the total value of private placements under the TSX Venture Exchange's pricing exemption by the deadline of August 31, 2013. It has received commitments for an additional $40,000 at $0.02 with a warrant for half a share at $0.05 for one year, and is still attempting to raise $30,000 to reach the limit.
For further information: Stone Communication Services
John Gocek Jason Stone
President & CEO (416) 867-2533
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