TORONTO, July 16, 2014 /CNW/ - Today, Cymat Technologies Ltd. (the "Company" or "Cymat") announced that it has arranged a non-brokered Private Placement Financing (the "Financing") to raise up to $2 Million through the issuance of 2,000 Convertible Debenture Units (the "Units") priced at $1,000 per Unit.
The Units consist of Convertible Debentures (the "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 - up until maturity, at the option of the holder (at no additional cost) are convertible into 5,000 free-trading Common Shares four months and 1 day after the closing of this Unit Financing. Each Warrant entitles the holder to purchase an additional Common Share at an exercise price of $0.25 until June 30, 2017.
The holders of the existing Promissory Note in the amount of $568,367 issued by Cymat in January 2014 have agreed to exchange their principal and security for Units under this Financing. As a result the Debenture Units will constitute a single class of senior securitized debt. Management/insiders are participating in this Financing.
As at the date of this release, Cymat has closed on a first tranche of $1.25 Million in Units. The Company anticipates closing of a second tranche of up to $750,000 by the end of July 2014, at which time the Company will issue a press release. The proceeds from the first and second tranches of this Financing will be used for general working capital purposes.
In anticipation of this financing, Cymat Common Shares were consolidated on a 10:1 ratio on June 25, 2014. Following the consolidation Cymat has 14,407,187 issued and outstanding Common Shares.
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.
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Cymat Technologies Ltd.
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