CYMAT Completes $2.64 Million Private Placement Financing



    
    Listing: TSX
    Symbol: CYM
    

    TORONTO, April 30 /CNW/ - Cymat Technologies Ltd. ("Cymat" or the
"Company") today announced that it has completed its non-brokered private
placement financing in the amount of $2,640,280. Fraser MacKenzie acted as the
Company's fiscal advisor in connection with the offering. The Company issued a
total of 9,031,190 Units (comprising a common share and a warrant to purchase
a common share) at $0.14 per Unit and 9,827,945 Subscription Receipts (which
become Units on approval by the Company's shareholders of the issue of the
securities underlying the Units), also at $0.14 per Subscription Receipt.
    The warrants expire 2 years from closing of the transaction and are
exercisable as follows: $0.25 for a period of 12 months following closing and
$0.35 for the 12 months thereafter.
    The net proceeds from the issue of Units (less certain escrowed amounts
pertaining to the Subscription Receipts) were paid to Cymat at closing. The
proceeds from the issue of Subscription Receipts plus the other escrowed
amounts referred to above will be held in escrow pending shareholder approval
of the issuance of the Units underlying the Subscription Receipts. Upon
obtaining such shareholder approval, the Subscription Receipts will be deemed
to be immediately exercised and the net proceeds from the sale of Subscription
Receipts plus certain escrowed amounts will be paid to the Company. If
shareholder approval is not obtained within the specified period, the gross
proceeds attributable to the issue of Subscription Receipts, together with
accrued interest, will be refunded to subscribers. Cymat intends to seek
shareholder approval as soon as practicable.
    This funding will enhance Cymat's financial resources as it continues to
meet increased product demand from each of it's three market verticals -
architectural, automotive and military. In particular, the Company anticipates
significant revenue growth in its military business. Proceeds from this
financing will be used to increase production capacity to facilitate same and
to provide general working capital.
    "With the high demand for our products - particularly our military
SmartMetal, we expect to fully commercialize Cymat by the end of calendar year
2009," said Cymat President, Tim Hardman. "These financial resources will
allow the Company to accelerate our business progress significantly," he
added.
    "We are pleased to have raised this capital in very difficult equity
markets and an amount in excess of our expectations," said Michael Liik,
Executive Chairman of Cymat. He went on to say "Participating in the financing
are several new institutions both from Canada and Europe."

    Cymat develops innovative materials for industry. The Company has
worldwide rights, through patents and licenses, for producing and licensing
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, recyclability and
relatively low cost of production. Cymat is collaborating with a number of
partners spanning the automotive, transportation and blast mitigation
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 disclaims any
intention or obligation to update or revise any forward-looking statements.

    %SEDAR: 00024103E




For further information:

For further information: Investors and Media: Michael Liik, Executive
Chairman, Cymat Technologies Ltd., Tel: (416) 307-4015, Email: Liik@cymat.com;
Tim Hardman, President, Cymat Technologies Ltd., Tel: (905) 696-2421, Email:
thardman@cymat.com; Trevor Sandler, Chief Financial Officer, Cymat
Technologies Ltd., Tel: (905) 696-2427, Email: tsandler@cymat.com


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