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.
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
For further information:
For further information: Investors and Media: Chris Skillen, Chief
Executive Officer, Cymat Technologies Ltd., Tel: (905) 696-2421, Email:
firstname.lastname@example.org; Trevor Sandler, Chief Financial Officer, Cymat Technologies
Ltd., Tel: (905) 696-2427, Email: email@example.com