SAINT-ÉPHREM-DE-BEAUCE, QUÉBEC--(Marketwired - Sept. 26, 2016) - Sigma Industries Inc. (TSX VENTURE:SSG), a manufacturing company specializing in the production of composite components, today announces the refinancing of its long-term debts and of its subordinated convertible loan. This refinancing provides the Company with more favourable terms and conditions, while also allowing Sigma to improve its working capital.

First, the Company's long-term debts of $5.2 million as at April 30, 2016 have been replaced by new loans totalling $6.0 million. The additional amount will be used to improve the Company's working capital.

• An amount of $3.5 million replaces an existing loan and the Company benefits from more favourable conditions in regards to the interest rate and the amortization period, while the maturity has been extended from one year to four years. Sigma's officers have accepted to subordinate their current convertible debentures to this new loan.
  
  
• A new loan of $2.5 million was used to reimburse an existing loan from another lender and to reimburse an amount of $150,000 in convertible debentures. The interest rate is similar, but the amortization period is more favourable. The maturity of the new loan has been set to five years.

Second, a subordinated convertible loan with an outstanding amount of $1.9 million has been replaced by a new subordinated term loan of the same amount. This new loan is non-convertible and, as a result, reduces by approximately 19 million the number of shares that could be issued, thereby eliminating a potential dilution to existing shareholders. The interest rate and the amortization period are similar. Sigma's officers have also accepted to subordinate their current convertible debentures to this new loan.

In addition, the Company reached an agreement with one of its lenders to obtain additional financing for capital investment projects. This additional financing could reach up to $3.0 million over the next 24 months.

Finally, an entity controlled by certain officers of the Company has acquired convertible subordinated debentures of a nominal value of $242,000. The debentures were previously held by an independent third-party. To finance this purchase, the Company has provided a $242,000 loan to this entity.

"This refinancing shows our lenders' confidence in regards to our business plan and growth opportunities. This financial support will allow Sigma Industries to pursue its efforts in order to capture business opportunities that may arise in the best possible time frame," said Denis Bertrand, President and Chief Executive Officer of Sigma Industries.

The new financing was awarded by Roynat and National Bank of Canada.

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.