Cymat Technologies Completes Successful $1.3 Million Private Placement Financing

Cymat Technologies Completes $1.3 Million Private Placement Financing

Cymat Technologies Ltd., a recognized leader in the production of Stabilized Aluminum Foam, has completed a successful non-brokered private placement financing, securing $1,283,858 in gross proceeds. This financial initiative was crucial for the company as it aligns with their strategic business objectives and strengthens working capital.

In this offering, each equity unit was priced at $0.11, with each unit comprising of one common share and one common share purchase warrant. The warrants provide the holders with the opportunity to purchase additional common shares at a set price of $0.13 within a 24-month timeframe. With an accelerated expiry clause in place, if the common shares achieve a closing price of $0.16 for ten consecutive trading days, the company can expedite the expiry of the warrants by 45 days. This approach demonstrates Cymat's commitment to fostering shareholder growth and responding proactively to market dynamics.

A total of 11,671,435 common shares and an equal number of warrants will be issued as part of this offering. Additionally, the financing will involve payment of finder's fees amounting to $4,191. Importantly, the funding structure limits any related compensation or broker warrants. Among the investors is a Cymat insider who subscribed for 909,090 units, reflecting an investment of $100,000, underscoring confidence in the company's prospects.

The funds raised through this private placement are earmarked for critical capital equipment purchases that will facilitate a significant strategic business development initiative. The additional capital will also enhance working capital resources to support ongoing projects, particularly those targeted at the automotive sector.

Reflecting on this accomplishment, Cymat’s CEO and Chairman, Michael Liik, expressed optimism about the future, stating, “We are pleased to be able to raise the requisite capital to enable us to take advantage of a strategic business opportunity.” This funding will provide a solid foundation for the company’s ongoing research and development efforts in their strategic automotive initiatives. As a further step in transparency and engagement with stakeholders, Cymat plans to host a webinar soon, offering updates on project progress and developments related to their initiatives.

About Cymat Technologies Ltd.

Cymat Technologies is a cutting-edge manufacturing firm known for its proprietary production of Stabilized Aluminum Foam (SAF), a lightweight and recyclable material once reserved for specialized applications but now increasingly recognized for its versatility across various industries, including architecture and automotive. SAF is produced through a unique process that injects gases into molten aluminum, resulting in a cellular structure that is customizable in density and dimension, offering exceptional mechanical energy absorption, thermal insulation, and acoustic dampening properties.

The company's architectural SAF, marketed under the Alusion™ brand, and automotive/military SAF, marketed as SmartMetal™, are fast becoming essential materials in sectors requiring optimal performance combined with sustainability.

Cymat’s advancements in this area position them favorably as they explore new partnerships and projects, thus driving their vision for growth and innovation. As they proceed, it is clear Chamet is intent on leveraging their unique technology to meet the evolving demands of their markets while ensuring shareholder value is maintained during periods of significant operational change.

In conclusion, the successful completion of this private placement not only reflects Cymat's ongoing commitment to growth and development but also serves as an exciting precursor to what lies ahead. Stakeholders and potential investors will be keenly watching for updates on how these funds will catalyze new opportunities for Cymat in the near future.