Sofame Confirms Conversion of $2,038,222 of Debt to Shares
MONTREAL, Oct. 28 /CNW Telbec/ - Sofame Technologies Inc. (TSX-V: SDW), a leading manufacturer of environmentally effective industrial hot water systems and cost efficient heat recovery equipment, has received approval from the TSX Venture Exchange to convert $2,038,333 of debts to common shares. The transaction includes the total aggregate principal of $1,525,000 of convertible debentures which were issued on May 16, 2007 and which matured on May 16, 2010, as well as other unsecured loans. The company is also negotiating with other unsecured lenders to convert up to $500,000 of additional debts to equity according to the same terms bringing the total to about $2,500,000, or more than half of Sofame's current liabilities. The conversion price is $0.05 cents per share according to the rules of the TSX Venture Exchange, and the new shares are subject to a mandatory 4-month hold period. As part of the conversion, 39,421,160 common share purchase warrants were issued entitling holders to acquire one additional common share of Sofame at an exercise price of $0.10 until October 25, 2012. There are currently 141,658,652 issued and outstanding common shares of Sofame.
"Thanks to amazing support from all of its stakeholders, Sofame has put the challenges created by the recession which began in 2009 into the past," stated John Gocek, Sofame's President and CEO. "Through a new subsidiary in the USA, Sofame Energy, we are pleased to be associated with strong new American partners for sales, equipment installation and financing."
Sofame has won contracts totaling $2,411,640 since April 2010. Operating expenses after nine months were cut by $1,726,914, or sixty-one percent. Two orders were completed in the fourth quarter ending September 30th 2010, and a large contract for a university in New Jersey is in production in the first quarter of fiscal 2011 ending December 31st, 2010.
About Sofame
Sofame Technologies Inc. custom engineers and manufactures unique, high-efficiency direct-contact industrial hot water systems which extract up to 99 percent of heat from flue gases depending on the application, and return the energy in the form of high-temperature hot water or pre-heated make-up air. Sofame's products help hospitals, food processing plants, universities, central heating plants and utilities to reduce fuel costs and greenhouse gas emissions. Using world-leading, patented green technology, Sofame serves industrial, institutional and commercial markets through a network of dedicated engineering representatives. For more information, visit www.sofame.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.
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For further information:
Stone Communication Services
Bill Mitoulas
(416) 867-2535
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www.stoneco.com
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