SAINT-ÉPHREM-DE-BEAUCE, QC, March 25, 2014 /CNW Telbec/ - Sigma Industries
Inc. ("Sigma" or the "Company") (TSXV: SSG) announces that it
intends to proceed, as soon as possible, with other private
placements with Investissement Québec and its shareholders for a
maximum amount of $1,925,000 to be
added to the Company's working capital to support daily operations
and the orderly transfer of U.S. operations to Quebec announced on March 17, 2014.
In December 2013,
Investissement Quebec underwrote a loan guarantee of $800,000 (the "Loan") for an eight-year (8-year)
term, bearing interest at an annual rate of 10%, payable quarterly,
and convertible at any time over the five (5) years following
disbursement, in whole or in part, into Sigma common shares, at a
price of $0.05 per share, for an
initial amount of $500,000 during the first year of the Loan,
and $0.10 per share for the balance
over the five (5) years following disbursement. The terms and
conditions of this Loan specify that Investissement Québec can now
convert a portion thereof, thus raising its Sigma stock holdings to
no more than 19.9% of issued and outstanding shares, on an
undiluted basis. Investissement Québec is Sigma's main secured
creditor, after the National Bank of Canada, and currently holds
1,000,000 common shares of the Company, or 8.53% of issued and
outstanding shares.
Subject to compliance with certain conditions,
including an additional capital outlay by Sigma shareholders in the
form of convertible debentures not to exceed $475,000 (the "Convertible debentures"),
Investissement Québec is willing to grant Sigma a second loan of no
more than $1,450,000 with the same
term as that of the loan, bearing interest at an annual rate of
10%, payable quarterly and convertible at any time over the five
(5) years following disbursement, in whole or in part, into Sigma
common shares, at $0.10 per share,
until the maximum number of shares held by Investissement Québec
equates to 42.6% of issued and outstanding Sigma shares, on
an entirely diluted basis (the "Convertible loan").
These private placements are subject to
approvals by the Company's shareholders and by the TSX Venture
Exchange. Conditions related to these approvals are detailed in the
Company's Proxy Solicitation Circular, which has been sent to
shareholders who had made the request and which is also available
on the SEDAR database (www.sedar.com).
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX-V: SSG), a manufacturing company
specializing in the production of composite components, has four
operating subsidiaries and employs 400 people. The Company is
active in the heavy-duty truck, coach, transit, machinery and wind
energy markets. Sigma sells its products to original equipment
manufacturers and distributors in the
United States, Canada and
Europe.
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.
SOURCE SIGMA INDUSTRIES INC.