Business
Cymat Secures up to $12,000,000 in Equity Financing
Cymat Secures up to $12,000,000 in Equity Financing Canada NewsWire TORONTO, May...
About this update from Cymat Technologies Ltd
[{"type":"text","content":"\n\n\n\nCymat Secures up to $12,000,000 in Equity Financing\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, May 30, 2019\n\n\n\nTSX-V: CYM\n TORONTO, May 30, 2019 /CNW/ - Cymat Technologies Ltd. (the \"Company\" or \"Cymat\") is pleased to announce that it has entered into a draw-down equity facility (the \"Agreement\") for proceeds of up to CAD $12,000,000 with Alumina Partners (Ontario) Ltd. (\"Alumina\"), a subsidiary of New York-based private equity firm Alumina Partners, LLC. \n\n \n \n\n \nThe Agreement is structured to allow Cymat quick access to financing for growth capital. Michael Liik, Cymat CEO commented, \"We have been pursuing several initiatives that have now evolved to the point that, if successful, will require substantial funding. More specifically, securing this stand-by financing facility will enable us to strengthen our negotiating position with partners and potential customers. It will also allow us to increase our production capacity in a timely manner should these opportunities come to fruition.\" Mr. Liik added \"We are excited to work with Alumina and are grateful for the opportunity that it affords us.\" The Agreement, which has a 24 month term, will provide Cymat with the ability, but not the obligation, to draw down funds at management's discretion. This will allow the Company to consider such factors as the market, pricing and timing when drawing on funds, so as to minimize dilution to existing shareholders.\nUnder the Agreement, the Company has the right to draw down on the facility, at its sole discretion, through equity private placement tranches of up to $500,000 each. A tranche is comprised of units (\"Units\") with each individual unit consisting of one common share and one common share purchase warrant (\"Warrant\").  The Units will be priced at a discount of between 15%-25% of the closing price of the shares on the trading day prior to Cymat's drawdown notice to Alumina. The Warrants will be issued at a 25% premium over the market share price, at the time of issuance and have a term of three years. Th...