Fiscal 2021 Results /NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS./
Symbol:TSXV: CYM
MISSISSAUGA, ON, Aug. 27, 2021 /CNW/ - Cymat Technologies Ltd. (TSXV: CYM) (the "Company" or "Cymat") is pleased to announce record revenues for the fiscal year ended April 30, 2021.
Our core business generated an historically high revenue of $4.2M in fiscal 2021, representing a year-over-year increase of 246%. This level of sales was key to producing positive cash flow from operations and Cymat's best financial results to-date.
On the business development front, Cymat has made significant progress in the automotive sector – a chief focus of the Company's growth strategy going forward. The Company entered into a co-operation agreement with Tesseract Structural Innovations Inc. ("Tesseract"), an automotive engineering and design firm. Together, the companies began marketing Tesseract's fully-designed and customizable energy management components. This joint product offering leverages the unique light-weight and energy absorption characteristics of SmartMetalTM with Tesseract's innovative design, engineering and testing capabilities. These components are particularly relevant to and are targeted towards the emerging electric vehicle segment. To bolster theses initiatives, Cymat added a senior automotive executive to its business development team. In addition to the Tesseract initiatives, he has begun to advocate the efficacy of SmartMetalTM to his extensive network of contacts in the automotive industry.
During the year, Cymat obtained financing in the form of a partially forgivable loan through the Canada Emergency Business Account in the amount of $40,000. The Company also received an interest-free loan in the amount of $180,000 from the Federal Economic Development Agency for Southern Ontario through their Regional Relief and Recovery Fund programme. In the final weeks of April 2021, the Company initiated an equity private placement financing. The financing was completed at the beginning of May 2021 and raised gross proceeds of $5M.
Key financial data for the year ended April 30, 2021 and the two previous fiscal years include the following (All items in $ 000's, except net loss per share):
| | 2021 | 2020 | 2019 |
| | | | |
| Revenue | 4,152 | 1,687 | 2,644 |
| Income (loss) from operations | 62 | (1,694) | (1,189) |
| Cash flow provided by (used in) operations | 433 | (1,333) | (471) |
| Net Loss | (543) | (1,815) | (1,359) |
| Net Loss per Share, basic and diluted | (0.01) | (0.04) | (0.04) |
| Cash and cash equivalents | 5,018 | 252 | 182 |
| Working Capital | 3,511 | (747) | (705) |
| Total Assets | 6,583 | 1,862 | 735 |
"Despite the unprecedented challenges arising from the COVID-19 pandemic, the Cymat team displayed their resiliency and determination in delivering record annual sales, positive operational cash flow and the first positive annual income in Cymat's history", said Michael Liik, CEO of Cymat. "The recently completed financing has provided the economic means to deploy more resources to each of our major sales verticals – architecture, automotive and military - as well as to plant capacity and productivity initiatives. We are confident that these actions will have positive consequences for our future revenue growth," added Mr. Liik.
About Cymat Technologies Ltd.
Cymat Technologies Ltd. has the global rights, through patents and established know-how, to manufacture and sell Stabilized Aluminum Foam ("SAF"), a unique, ultra-light, cellular metallic material. The proprietary production process entails the injection of gases through a molten bath of alloyed aluminum infused with ceramic particles. The result is an advanced, lightweight, recyclable material that exhibits unique characteristics including: customizable density and dimensions; mechanical energy absorption; thermal and acoustic insulation; and time, temperature and strain-rate insensitivity. A key benefit of this continuous foam production process is its scalability and resultant low cost of production. SAF is used in such industries as architectural design, military and automotive. Cymat markets its architectural SAF under the AlusionTM brand and its automotive and military SAF under the SmartMetalTM brand. For further information , please visit our website at www.cymat.com.