Sofame Energy Recovery Masthead

Sofame Investor News 

(TSXV: SDW), (OTC.PK: SFMGF)
September 3, 2013
In This Issue
Sofame Reports Q3 Sales of $520,606
Chairman's Meeting Notes
NEW! Sofame video case study just published
Quick Links

www.sofame.com

New EPA CO2 Guidelines for Existing Power Plants

Sofame NEW Case Study Video

200 GW of Energy Wasted
Editor's Message

Welcome to the latest issue of Sofame Investor News on how your company helps facilities managers around the globe by recapturing waste 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.
  
If you missed our new video in the last newsletter, please be sure to watch the new videos below in both French and English.  These were published recently, so please share them on social media to help us get the word out!
   

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Sofame Reports Revenues of $ 520,606 and $ 128,077 of EBITDA in the Third Quarter
  

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
(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.
  
Chairman's Meeting NotesSeptember 2013
Report from the Annual Meeting
  
Robert Presser, Chairman
Sofame held its annual general and special meeting of the shareholders in Montreal on August 23, 2013.  Robert Presser chaired the meeting, which was held in the offices of Canadian Stock Transfer.  Twenty-six percent of the shareholders voted on the standard resolutions, all of which were approved with minimal dissent.  The four members of the Board, Robert Presser, Fahim Samaha, Brian Dillon and Sham Ahmed take this opportunity to thank shareholders for their confidence.
  
Following a brief management presentation (copies available upon request), the audience expressed their appreciation to John Gocek, Sofame's President & CEO, and Luc Mandeville, Vice President of Engineering and Sofame's founder, for their exceptional loyalty to the Company, its customers, products and shareholders.  Allan Ghetler, Sofame's new General Manager, then explained his numerous supporting roles in the Company's operations. 
  
Two questions concerning the investor relations and acquisitions strategies were raised by the shareholders present.  Robert reiterated that the Board and management are convinced that new orders and profits are the main priority.  In addition to the regular communications and public disclosure activities, the share price should reflect real progress of the operations.  However, Robert added that the team is committed to grow the business both organically, via its network of representatives, as well as via an aggressive acquisition strategy, which was first mentioned in press release on November 27, 2012.
  
Sofame has in fact secured the financial support of a New-York based investment group to actively pursue synergistic acquisitions of complementary targets in the HVAC field (heating, ventilation, air conditioning) for both vertical and horizontal integration.  It is this group which made the introductions to the New York based fund which is now in the final stages of authorizing a $ 3 million revolving loan to finance production of new orders.  
  
In the current fiscal quarter, Sofame has applied to the SEC to begin filing its financial reports in the United States on the EDGAR system.  Under the new global IFRS regime, Sofame's audited financial statements and MD&A will be accepted by the SEC once the initial registration form 20-F is accepted and the form 6-F is filed.  Upgrading our US public markets ticker SFMGF on OTC Markets from grey market to Bulletin Board should help to increase awareness about Sofame's products and marketing strategy.   The board and management are confident that this move to make our shares more accessible to American small cap investors will have a beneficial impact for all shareholders.
  
The Board's objective is to create a company with a minimum $50 million of revenue in fiscal year 2014, and which will have broader manufacturing capabilities, a physical presence in New England, and multiple complementary HVAC product lines to offer existing clients and new prospects via Sofame's growing sales network.  The meeting ended on a positive note.
  
 
Video: Sofame turns up the heat (Click)

 

The Gazette July 29, 2013
Natural gas used for heating is much cleaner than coal, but it still produces greenhouse gas. To help reduce natural gas consumption, Montreal-based company Sofame Technologies has developed a clean technology to recuperate residual heat from steam boilers. Ecole Polytechnique is one of places that has invested in this technology to improve its energy efficiency. In the second of eight videos that will highlight green technology in Quebec, video blogger Véronique Paquette-Corriveau of Ecotech Quebec discovered how the engineering school is able to heat two buildings for the price of one with Sofame's made-in-Québec innovation.
  
En video: Maximiser le gaz naturel (cliquez)
  
Journal Metro, Montrel, 28 juillet 2013
Le gaz naturel destiné au chauffage est bien moins polluant que le charbon, mais il émet tout de même du CO2! Pour permettre de réduire la con­sommation de gaz naturel, l'entreprise québécoise Sofame Technologies a développé une technologie propre permettant de récupérer la chaleur qui s'échappe normalement d'une chaudière à vapeur. Comme plusieurs aéroports, hôpitaux et usines, Polytechnique Montreal a investi dans cette technologie pour améliorer son rendement énergétique. La vidéoblogueuse Véronique Paquette-Corriveau de
Ecotech Quebec
a découvert comment cette école d'ingénierie chauffe deux bâtiments pour le prix d'un grâce à cette innovation québécoise.
So Energy Efficient. Sofame.