MANCHESTER, N.H., Aug. 18, 2010 (GLOBE NEWSWIRE) -- QED Connect, Inc. (Pink Sheets:QEDN), a New York corporation ("QED Connect"), today announced that its Joint Venture partner, Sofame Technologies, Inc. ("Sofame Technologies") (TSX-V:SDW), has reached agreement with certain, identified note holders of Sofame Technologies to settle and convert outstanding, unsecured debentures to common shares. The total value of liabilities under consideration for conversion to equity is currently up to $2,000,000 including $1,525,000 of debentures, or approximately one half of Sofame's current liabilities. The proposed transaction is subject to approval by the TSX Venture Exchange.
Tom Makmann, President and CEO of QED Connect, commented, "By reducing its total liabilities, Sofame can allocate more cash to pursuing the market and developing new products to support its customers. The Joint Venture, Sofame Energy, expects to begin installation of $1.2m of US orders over the next 4 months. The outlook for US demand for Sofame products over the next year remains good, and we are excited about the potential of the JV."
Gross revenues from the sales and installation of Sofame equipment in the U.S. will be dedicated, in part, to Sofame Energy's marketing plans and to further Sofame Technologies product development. To the extent that the JV, Sofame Energy, retains a profit on current and future U.S. based installations, QED will realize between 20% and 50% of the net profits.
"The settlement and conversions of the debentures would help ensure that a greater portion of cash will be available to support ongoing operations, rather than debt service and repayment of loans. It would also represent a reduction in future interest expense and a significant improvement in Sofame's balance sheet. It is a vote of confidence following the restructuring of operations earlier this year," stated John Gocek, Sofame's President and CEO.
About QED Connect, Inc.
QED Connect, Inc. is a New York corporation holding company which makes acquisitions, investments, and enters into strategic business partnerships. The Company seeks businesses with strong potential which QED can assist in achieving their plans and realizing their maximum potential. This business model achieves the Company's goals and expands its overall revenue and profits and diversifies through entry into the multiple market segments. It is QED's intention to help its partners and subsidiaries realize growth, and that growth would, in turn, enhance QED's ability to increase shareholder value. www.qedconnect.com
About Sofame Technologies Inc.
Sofame Technologies Inc. custom engineers and manufactures unique, high-efficiency direct-contact industrial hot water systems which extract up to 99 percent of heat from flue gases depending on the application, and return the energy in the form of high-temperature hot water or pre-heated make-up air. Sofame's products help hospitals, food processing plants, universities, central heating plants, utilities and many more large energy consumers to significantly reduce fuel costs and greenhouse gas emissions. Using world-leading, patented green technology, Sofame serves industrial, institutional and commercial markets through a network of dedicated engineering representatives. For more information, www.sofame.com
Safe Harbor Statement
Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of QED Connect, Inc., (the "Company") to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to complete the Joint Venture with Sofame and to fund QED's overall expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its Joint Venture with Sofame and to fund QED's growth, generally ; (iii) successfully obtain and fill potential Joint Venture product orders; (iv) generate sufficient revenue and efficiently manage operations to obtain profitability ; (v) competitive factors and developments beyond the Company's control; and (vi) other risk factors.