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QED Connect Inc. and Sofame Technologies, Inc. Finalize Joint Venture
MANCHESTER, N.H., Jul 28, 2010 (GlobeNewswire via COMTEX) -- QED Connect Inc. (Pink Sheets:QEDN), a New York corporation ("QED Connect"), today announced that it has completed its Joint Venture Agreement with Sofame Technologies, Inc. ("Sofame Technologies") (TSX-V:SDW). The Joint Venture company, Sofame Energy, Inc., has been incorporated in Nevada with headquarters to be established in downtown Chicago for the purpose of exclusively distributing, selling and supporting Sofame's current and future products in the United States.
Under the terms of the Joint Venture Agreement, QED and Sofame Technologies will initially be the only equity owners of Sofame Energy and will share revenue of Sofame Energy. The joint venture will also establish strategic relationships and assist the marketing and business development efforts. Sofame Energy has initially organized a debt financing arrangement, potentially up to $1 million, to support expansion into the US market as well as further product development at Sofame Technologies in Canada.
Over the last three months, Sofame Technologies has closed over $1.6 million in US orders including: $1 million to design and install a Sofame Stream Pump(R) at a well known university in New Jersey for a system that will reduce nitrogen oxide emissions while simultaneously increasing the overall efficiency of the large boiler plant, and a $555,000 order from a major pharmaceuticals manufacturer for a custom Percotherm(R) heat recovery system that is designed to reduce natural gas consumption and carbon emissions.
John Gocek, Sofame Technologies President and CEO, said, "With a US headquarters in Chicago, Sofame Energy is in a much better position to supply customers with a US made product at competitive costs and which qualifies for state and local grant programs and other assistance. The US is a key part of our growth strategy and Sofame Energy gives us the presence in this market to help us continue to win business."
A recent McKinsey & Co. report entitled Unlocking Energy Efficiency in the U.S. Economy, estimates that savings of 23% per year in overall energy consumption could be achieved by employing energy efficient systems in the United States. This would require an investment of $50 billion per year over the next 10 years, representing a four to five fold increase in current spending. The resulting annual energy savings could reach $130 billion annually by 2020 according to the study.
Tom Makmann, President & CEO of QED Connect, stated, "The completion of the Joint Venture marks a significant step in QED's strategy of partnering with and investing in early stage companies with strong revenue growth potential. Sofame is in an exciting new market that has high growth potential with a proven technology that gives the company a competitive advantage. In addition to Sofame Energy, we expect to close our acquisition of Nazz Productions within the next 30 days, and are continuing to explore additional opportunities to increase shareholder value."
