TORONTO, April 19 /CNW/ - Cymat Technologies Ltd. ("Cymat" or the "Company") today announced that it has completed a non-brokered private placement financing in the amount of $2.74 million. The Company will issue a total of 11,458,578 Units (comprising a common share and a warrant to purchase a common share) at $0.18 per Unit and 3,764,889 Subscription Receipts (which become Units on approval by the Company's shareholders of the issue of the securities underlying the Units), also at $0.18 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 proceeds from the issue of Subscription Receipts 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 execute on increased product demand from each of its three market verticals - architectural, automotive and military. In particular, the Company anticipates significant revenue growth in its military and architectural businesses. Proceeds from this financing will be used to increase production capacity to facilitate same and to provide general working capital.
"With the increasing demand for our products - particularly our military SmartMetal(TM) and architectural Alusion(TM) products - we expect to fully commercialize Cymat by the end of calendar year 2010." said Cymat President, Tim Hardman. "These financial resources will allow the Company to accelerate our business progress significantly" he added.
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.
SOURCE Cymat Technologies Ltd.
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: firstname.lastname@example.org; Trevor Sandler, Chief Financial Officer, Cymat Technologies Ltd., Tel: (905) 696-2427, Email: email@example.com