TORONTO, April 22, 2013 /CNW/ - Cymat Technologies Ltd. (the "Company" or "Cymat") announced today that it has signed a debt Settlement Agreement with Industry Canada regarding the funds repayable under a contribution agreement through the Technology Partnerships Canada ("TPC") Program. Under the former TPC arrangement, the Company was required to make an annual royalty payment of 3.45% on aluminum foam sales. Under this arrangement, approximately $6,366,000 remained to be paid. This obligation was reflected on Cymat's January 31, 2013 financial statements as a $2,148,000 liability - an amount equal to the present value of the forecast royalty payment stream.
Under the Settlement Agreement, Industry Canada has agreed to accept payments in the aggregate amount of $175,000 in settlement of Cymat's entire obligation under the TPC program. The settlement is payable in 35 monthly installments of $5,000 each, commencing on May 15, 2013. In addition, once three installment payments have been made, the Company has the option of settling the remaining amount owing with a lump sum payment of $100,000. This lump sum payment option is available to Cymat up July 15, 2014.
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.
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.
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