Listing: TSX
Symbol: CYM
TORONTO, Sept. 27 /CNW/ - Cymat Technologies Ltd. today announced that it has engaged Fraser Mackenzie as an advisor to assist the Company with a non-brokered private placement of its common shares and common share purchase warrants for gross proceeds of a minimum of $1.5 million. Each unit will consist of one common share and one half-purchase warrant with an 18-month expiry. Pricing of the common shares will be at $0.25 and the warrants at an exercise price of $0.35. The transaction is expected to close within 60 days.
This private placement was precipitated by significant unsolicited Canadian and European institutional interest for Cymat treasury shares.
This funding will enhance Cymat's financial resources as it continues to meet increased product demand in its targeted markets through its revenue-focused strategy. The company is now poised for significant revenue growth as evidenced by its recently announced automotive prototype order, additional Audi order and blast mitigation progress. Cymat has also generated substantial revenue increases in the last three quarters from Alusion, its architectural product line.
Proceeds from this financing will be used to increase production capacity, reduce order cycle times, hire additional sales staff to accelerate sales and provide general working capital.
"This financing, coupled with the substantial revenue potential in our target markets, will allow Cymat to accelerate sales, expedite its primary goal of achieving profitability and realize on a very large market for its advanced patented material" said Chris Skillen, CEO of Cymat.
In addition, Cymat is working with the TSX to obtain an extension to its Annual Shareholders Meeting requirement for October 31, 2007 for up to 90 days, to allow Cymat the opportunity to include agenda items related to this financing that may require shareholder approval.
About Cymat:
Cymat develops innovative materials for industry. The company has 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, is recyclable and relatively low cost of production. Cymat is collaborating with a number of partners spanning the automotive, transportation, blast mitigation and 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 Technologies Ltd. with the Ontario Securities Commission. Cymat Technologies Ltd. disclaims any intention or obligation to update or revise any forward-looking statements.
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