SAINT-ÉPHREM-DE-BEAUCE, QUÉBEC--(Marketwired - Jan. 27, 2017) - Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, today announces that it will soon proceed with new capital investments as part of a modernization program of its facilities and equipment. The funds required for these investments will mainly stem from additional financing obtained from one of the Company's lenders, as announced in a press release on September 26, 2016. This additional financing could reach up to $3.0 million over a 24-month period.
"These new investments will allow Sigma Industries to remain a leading manufacturer of innovative, high-quality composite products. The investments are aimed at enhancing our flexibility by further modernizing our equipment, including a greater automation of our manufacturing activities," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.
Finally, the Company is providing an update in regards to an item of the refinancing plan of its long-term debts announced in a press release on September 26, 2016. According to the plan, an entity controlled by certain officers of the Company has acquired three convertible subordinated debentures of a nominal value of $242,000, which were previously held by an independent third-party. To finance this purchase, the Company has provided a $242,000 loan to this entity. The loan is secured by a movable mortgage on the three debentures. In accordance with TSX Venture Exchange policies, the Company will submit this loan for approval by disinterested shareholders at the next annual meeting of shareholders. The convertible subordinated debentures purchased by the aforementioned entity cannot be converted before the earlier of i) the date on which approval has been obtained, or ii) the repayment of the loan.
ABOUT SIGMA INDUSTRIES
Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, has two operating subsidiaries and employs 300 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 the 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.