Consolidated Composites Industries Inc.

October 12, 2016 18:12 ET

Consolidated Composites Industries (CCI) Inc. Files Early Warning Report

MONTREAL, QUEBEC--(Marketwired - Oct. 12, 2016) - In connection with certain refinancing transactions carried out by Sigma Industries Inc. (TSX VENTURE:SSG) (the "Issuer"), previously announced on September 26, 2016, Consolidated Composites Industries (CCI) Inc. ("CCI"), acquired direct ownership of secured convertible debentures of Sigma in the aggregate principal amount of $242,000 (the "Debentures") under a prospectus-exempt private transaction with a third party vendor at a purchase price equal to that same amount (the "Transaction"). CCI is a holding company equally owned by certain existing insiders of the Issuer, Messrs. Denis Bertrand, Bruno Doyon, Pierre Massicotte, and Jean-François Doré, each of whom is also an officer and/or director of CCI.

The Debentures consist of three separate tranches in the principal amounts of $87,000 (the "First Tranche"), $100,000 (the "Second Tranche"), and $55,000 (the "Third Tranche"). The First Tranche will mature on December 4, 2018 and the Second Tranche and Third Tranche will mature on November 10, 2020. The First Tranche bears interest at an annual rate of 10% and is convertible into common shares of the Issuer (the "Shares") at a conversion price of $0.10 per share. The Second Tranche bears interest at an annual rate of 12% and is convertible into units of the Issuer at a conversion price of $0.10, with each unit consisting of one Share and one Share purchase warrant to acquire an additional Share at an exercise price of $0.10. The Third Tranche bears interest at an annual rate of 12% and is convertible into units of the Issuer at a conversion price of $0.10, with each unit consisting of one Share and one Share purchase warrant to acquire an additional Share at an exercise price of $0.12.

The Debentures and the underlying securities represent approximately 25.3% of the Issuer's issued and outstanding Shares on a partially-diluted basis.

Prior to completion of the Transaction, CCI held no securities of the Issuer.

The Debentures were acquired by CCI for investment purposes. Depending upon the circumstances, CCI may, from time to time, acquire additional securities of the Issuer or dispose of all or a portion of the securities of the Issuer previously acquired.

An early warning report of CCI containing additional information with respect to the foregoing matters will be filed under the Issuer's SEDAR profile at www.sedar.com.

Further information or copies of the early warning report may be obtained by contacting:

Sigma Industries Inc.
55 Highway 271 S
Saint-Éphrem, Quebec G0M 1R0
Consolidated Composites Industries (CCI) Inc.
3069 rue du Verger
Saint-Augustin, Quebec G3A 2W8

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