TORONTO, Aug. 20, 2014 /CNW/ - Today, Cymat Technologies Ltd. (the "Company" or "Cymat") announced that it has closed on a $1,615,000 issuance of Convertible Debentures (the "Debentures") raised via a non-brokered Private Placement Financing (the "Financing").
The Financing consists of Debenture Units (the "Units") priced at $1,000 per Unit with each Unit consisting of Debentures in the principal amount of $1,000 and 5,000 Common Share Purchase Warrants (the 'Warrants"). The Debentures bear interest at a rate of 12% per annum, mature on June 30, 2017, and are convertible, at the option of the holder, into 5,000 Common Shares. Each Warrant entitles the holder to purchase one Common Share at an exercise price of $0.25 until June 30, 2017. A four month plus 1 day hold period applies to the Debentures and Warrants.
The holders of existing January 2014 Promissory Notes (the "Notes") exchanged their Notes for 598 Units. Debentures in the principal amount of $230,000 were issued to Company Insiders, representing 14% of the overall issuance.
Conditional approval of this Financing was received from the TSX Venture Exchange on July 8, 2014 and the Company has submitted the required documents for final TSX-V approval. The Financing proceeds will be used for general working capital purposes.
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 architectural, blast mitigation and automotive industries. For further information, visit the Web site www.cymat.com.
SOURCE: Cymat Technologies Ltd.
For further information: Investors and Media: Michael Liik, Executive Chairman, Cymat Technologies Ltd., Tel: (416) 682-4214, Email: Liik@cymat.com