TORONTO, July 6 /CNW/ - Cymat Technologies Ltd. entered into an exclusive distribution agreement with Vitrocsa, a distribution leader in architectural materials in Spain. They will offer Cymat's flat panel products (Alusion) to builders and architects throughout the country. The terms of the agreement require stepped minimum purchases totaling $3 million during the term of the agreement. It is anticipated that actual revenues will be substantially higher.
"We are pleased with our partnership with Vitrocsa and how it has deepened in the last year and now anticipate major projects in Spain" said Chris Skillen, President and CEO of Cymat. "With Vitrocsa's existing footprint in Spain as well as its success in developing innovative material solutions, Cymat is well positioned to grow its architectural industry products further in keeping with its strategy" he continued.
Vitrocsa has identified a number of high profile projects which will establish our innovative material in the Spanish market. Additionally, Vitrocsa is developing a number of patented applications for Cymat's product which will allow them and their customers to maintain a leadership position with Cymat's foam technology.
This agreement bodes well for increased product use and revenues for Cymat as the company continues to transition to a revenue-based company from its research roots.
Cymat is making good progress on a number of fronts and will announce key transactions as they occur consistent with proper disclosure requirements.
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 revolutionary material with a wide array of features including very low density, mechanical energy absorption, thermal and acoustic insulation, is recyclable, time and temperature insensitive and has a relatively low cost of production. Cymat is collaborating with a number of partners spanning the automotive, architectural and blast mitigation industries. For further information, visit the Web site www.cymat.com.
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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