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
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
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.