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Listing: TSX
Symbol: CYM
TORONTO, Feb. 6 /CNW/ - Cymat Technologies Ltd. ("Cymat") today updated investors on the progress of its previously announced private placement financing. It is now anticipated that the financing will provide funding in an amount between $2 and $3 million. Each subscription to this issue will consist of (in equal parts) the issue of Units consisting of common shares and warrants and Subscription Receipts to acquire Units.
The proceeds from the issue of Units will be available to Cymat at closing, currently anticipated in the latter half of February 2007. The proceeds from the issue of Subscription Receipts will be held in escrow pending shareholder approval of the issuance of the Units underlying the Subscription Receipts. Upon obtaining such shareholder approval, the Subscription Receipts will be deemed to be immediately exercised. If shareholder approval is not obtained within a specified period, the gross proceeds attributable to the issue of Subscription Receipts, together with accrued interest, will be refunded to subscribers. Cymat intends to seek shareholder approval as soon as practicable.
M Partners Inc. is acting as Cymat's exclusive agent in respect of the financing which is to be completed on a best efforts, agency basis. The offering will be priced in the context of the market.
This funding will allow Cymat to expand operations to meet both the current demand, backlog and meet forecasted increases in production.
Demand for our technology, products and capability has strengthened in the recent past and these financial resources will allow the company to accelerate business progress associated with its announced strategy of moving its focus to commercialization from its previous research focus.
In additional news, Cymat just completed a quarter ending last week and preliminary results indicate that it has achieved the highest revenue quarter in its history with $570,000 of sales. This represents a 33 percent increase quarter to quarter and approximately 600 percent compared to the corresponding quarter last year when Cymat had revenues of $79,000.
Cymat develops innovative materials for industry. The company has exclusive worldwide rights, through patents and licenses, for producing Stabilized Aluminum Foam. The ultra-light metallic foam is manufactured by bubbling gas through molten alloyed aluminum containing a dispersion of fine ceramic particles and can be produced as either Near-net Shapes or Flat Panels. The result is a new strategic material with a wide array of benefits, including a good stiffness-to-weight ratio, mechanical energy absorption at low stress levels, thermal and acoustic insulation, recyclability and relatively low cost of production. Cymat is collaborating with a number of partners spanning the automotive, transportation and blast mitigation construction industries.
The foregoing press release contains forward-looking statements relating to the development of markets, development programs, future revenues and improvements in technology, which are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include the availability of funding, existing and future relationships with suppliers and manufacturers, the results of research and development activities, risks of technological breakthroughs that make Cymat stabilized aluminum foam less attractive, risks relating to the breadth, scope and enforceability of intellectual property rights, general industry and market conditions, availability of qualified personnel, and reliance on co-development partners. For additional information with respect to these and other factors, see the reports filed by Cymat Corp. with the Ontario Securities Commission. Cymat Corp. disclaims any intention or obligation to update or revise any forward-looking statements.
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