Listing: TSX Symbol: CYM
TORONTO, Dec. 5 /CNW/ - Cymat Technologies Ltd. today announced that it has engaged M-Partners and D&D Securities Company on a best efforts basis to act as agents for a private placement of common shares and common share purchase warrants for gross proceeds of between $2.0 and $3.0 million. Each unit will consist of one common share and one two-year purchase warrant. The common shares will be priced at $0.30. Each warrant will have an exercise price of $0.40 for the first twelve months and $0.60 for the next twelve months. The transaction is expected to close within 30 days.
This financing will help accelerate Cymat's planned transition from a research-based to a revenue-focused company. Cymat's transition strategy, launched in June of this year, is well under way with the recent announcement of an auto-licensing agreement with Georg Fischer. As well, Cymat has generated substantial revenue increases in the last two 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 and provide general working capital.
"Cymat's products are experiencing very substantial growth as a result of our recent sales focus. This financing coupled with the non-dilutive $1.8 million funding from the recent Brompton transaction, should provide Cymat with sufficient resources to achieve profitability" said Chris Skillen CEO of Cymat.
About Cymat:
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, 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.