TSX-V: CYM
TORONTO, May 30, 2019 /CNW/ - Cymat Technologies Ltd. (the
"Company" or "Cymat") is pleased to announce that it has entered
into a draw-down equity facility (the "Agreement") for proceeds of
up to CAD $12,000,000 with Alumina
Partners (Ontario) Ltd.
("Alumina"), a subsidiary of New
York-based private equity firm Alumina Partners, LLC.
![Cymat Technologies Ltd. (CNW Group/Cymat Technologies Ltd.) Cymat Technologies Ltd. (CNW Group/Cymat Technologies Ltd.)](https://mma.prnewswire.com/media/895112/Cymat_Technologies_Ltd__Cymat_Secures_up_to__12_000_000_in_Equit.jpg)
The Agreement is structured to allow Cymat quick access to
financing for growth capital. Michael
Liik, Cymat CEO commented, "We have been pursuing several
initiatives that have now evolved to the point that, if successful,
will require substantial funding. More specifically, securing this
stand-by financing facility will enable us to strengthen our
negotiating position with partners and potential customers. It will
also allow us to increase our production capacity in a timely
manner should these opportunities come to fruition." Mr. Liik added
"We are excited to work with Alumina and are grateful for the
opportunity that it affords us." The Agreement, which has a 24
month term, will provide Cymat with the ability, but not the
obligation, to draw down funds at management's discretion. This
will allow the Company to consider such factors as the market,
pricing and timing when drawing on funds, so as to minimize
dilution to existing shareholders.
Under the Agreement, the Company has the right to draw down on
the facility, at its sole discretion, through equity private
placement tranches of up to $500,000
each. A tranche is comprised of units ("Units") with each
individual unit consisting of one common share and one common share
purchase warrant ("Warrant"). The Units will be priced at a
discount of between 15%-25% of the closing price of the shares on
the trading day prior to Cymat's drawdown notice to Alumina. The
Warrants will be issued at a 25% premium over the market share
price, at the time of issuance and have a term of three years. The
Warrant will have an accelerated expiry clause subject to the terms
of the Agreement. There are no standby charges nor other upfront
fees associated with the Agreement.
"We have been very impressed with Cymat's portfolio of actively
progressing business opportunities," added Adi Nahmani, Managing Member of Alumina
Partners, LLC. "From the automotive to the architectural
industries, to defense contracting and ancillary practices besides,
Cymat's leadership team has demonstrated the persistence of vision
to cultivate promising markets and complementary partners in those
markets. As the lifecycles of those projects continue to mature, we
look forward to seeing Cymat reach their inflection points and
begin deploying meaningful capital to drive revenue in the near
future."
The Company also announced that in conjunction with its annual
strategic review process and in accordance with Cymat's stock
option plan, the Company has granted 1,085,000 incentive stock
options to certain of its directors, officers and employees, with
each option being exercisable into one common share of Cymat at
$0.31 per share until May 23, 2024. The options vest in three
tranches over a two year period.
About Cymat:
Cymat Technologies Ltd. is an innovative materials technology
company employing a proprietary process to manufacture our unique
Stabilized Aluminum Foam ("SAF"). Cymat SAF is an advanced
lightweight recyclable material with a wide array of features
including customizable density and dimensions, energy absorption
and thermal and acoustic insulation. Cymat is focused on producing
SAF for architecture, blast mitigation, automotive, transportation
and industrial markets.
Cymat's architectural brand, Alusion™, has become
an accepted choice for superior and unique cladding and façade
alternatives for the building industry. The AlusionTM
brand is recognized globally, having completed projects on almost
every continent.
Cymat's SmartMetal™ division has developed proven
products for energy absorption applications including blast
mitigation for the military sector and impact reduction for the
nuclear energy sector. Cymat is working with numerous manufacturers
and solution providers around the world for the integration of
SmartMetalTM into kinetic energy management systems.
Cymat is based in Mississauga,
just outside Toronto, where it
operates a 2.400 sq. metre plant. For further information on Cymat,
please visit our Web site www.cymat.com.
SOURCE Cymat Technologies Ltd.