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,
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
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.