Sofame Technologies completed a senior secured revolving credit facility agreement of up to $3 million with TCA Global Credit Master Fund.

As part of the new loan agreement, the existing first rank mortgage bond securing the $250,000 bridge loan will be subrogated in favor of the new note and credit line. The TCA Global Fund agreed to allow Sofame sell its plant in Montreal to a real estate investment fund and leaseback its offices to reduce financing and operating costs. Sofame has outsourced its manufacturing for the last three years, and does not require in-house manufacturing capabilities. The offer to purchase the building is being finalized in November pending environmental and structural evaluations. The existing mortgage capital and interest will be repaid at the closing.

Revenue growth in 2014 is expected to come from sales of the new 99% efficient 10 and 30 million BTU frac heaters, sales of Sofame’s core industrial energy efficiency systems, and incremental revenues from the acquisition of compatible companies in the HVAC field.

Under the credit agreement, advances bear interest at the rate of 12% per annum and are secured by all assets of the company. An initial disbursement of a $ 400,000 note was completed on September 23, 2013. Use of proceeds is for working capital. Additional disbursements will serve to finance future growth of accounts receivable as Sofame pursues its business development plan in 2014.

John Gocek, Sofame’s president & CEO, said, “We are pleased that TCA Global has decided to take on the role of financing for growth, which has been neglected for several years by most traditional lenders including banks. This secured revolving note facility serves three essential purposes, namely, access to cash to finance orders in hand, tangible working capital support in the event we acquire other niche firms in our field, and safekeeping of all of our intellectual property developed over the last twenty-five years.”