Sofame has announce that it has appointed Desjardins Securities as lead agent for a prospectus offering of common shares for gross proceeds of up to C$5.0m. The shares will make ‘qualified investments’ under the province of Québec's recently-implemented Quebec Stock Savings Plan II (REA II). As an accredited company, any local investor who subscribes to the issue will be entitled to a 150% allowance against their income taxes
Sofame will use the net proceeds from the offering to intensify marketing activities, hire sales and engineering staff, for working capital and general corporate purposes. Pricing of the shares will be fixed at a later date.
Earlier in the month Sofame announced it had also decided to extend the life of 5,776,410 existing warrants, exercisable at C$0.25, until December 2012 and 3,580,566 existing warrants, exercisable at C$0.50, until April 2013.
Objective's view:
The capital raising of up to C$5.00m will be necessary, in our view, for the company to have the financial muscle to execute its ambitious marketing plan effectively -- especially if current market conditions persist for any length of time.
