SAINT-ÉPHREM-DE-BEAUCE, QC, April 24, 2014 /CNW Telbec/ - Sigma Industries
Inc. ("Sigma" or the "Company") (TSXV: SSG) announces that it has
obtained the conditional approval of TSX Venture Exchange and the
approval of its shareholders not having an interest to undertake
private placements with Investissement Québec and with Sigma
shareholders of a secured loan and secured convertible debentures
to a maximum amount of $1,925,000.
The proceeds will be added to the Company's working capital to
support day-to-day operations and the orderly execution of the
transfer of its U.S. operations to Quebec announced on March 17, 2014.
Subject to compliance with certain conditions,
including an additional capital outlay by Sigma shareholders in the
form of secured convertible debentures to a maximum amount of
$475,000 (the "Convertible
Debentures"), Investissement Québec is willing to grant Sigma a
second secured loan, to a maximum amount of $1,450,000, with a term of 8 years, bearing
interest at an annual rate of 10% payable quarterly, and
convertible in whole or in part, at any time over the 5 years
following its disbursement, into common shares of Sigma 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").
The Convertible Debentures of a term of 5 years
will bear interest at 10% annually, payable quarterly, and will be
convertible at any time, in whole or in part, into Sigma common
shares at a price of $0.10 per
share.
These private placements are subject to final
approval by the TSX Venture Exchange.
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX-V: SSG), a manufacturing company
specializing in the production of composite components, has two
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.