CEMATRIX Completes Phase 2 and 3 CEMATRIX Completes Phase 2 and 3 of Its Strategic Investment in Glavel
CEMATRIX Corporation (TSXV: CVX) (OTCQB: CTXXF) (" CEMATRIX " or the " Company "), a North American leading manufacturer and supplier of technologically advanced cellular concrete products, announces that it has completed Phase 2 and 3 of its strategic investment commitment in Glavel, Inc. (“ Glavel ”). CEMATRIX’s investment to date in Glavel (the “Investment ”), is USD $1.68 Million of the total USD $4 Million committed.
Under Phase 2, CEMATRIX advanced USD $625,000 to Glavel for the deposit on equipment to be used to expand production at Glavel’s manufacturing facility in Vermont. The investment was by way of a Convertible Note (the “Note”) and will bear at 8% interest rate per annum. The Note matures April 20, 2025 and is convertible at $2.11 per share into 295,648 common shares of Glavel at any time up to maturity. As part of this investment, CEMATRIX received warrants to purchase up to 36,982 common shares of shares of Glavel for a period of 1.5 years from the date of issuance for an exercise price of USD $1.69. Accrued interest is also convertible into common stock of Glavel at the same rate as the principal portion under the Note.
Under Phase 3, CEMATRIX advanced USD $500,000 to Glavel in return for 236,518 Preferred Shares. These funds were advanced as additional working capital. The Preferred shares are convertible into common shares of Glavel at any time on a one for one basis. Upon completion of these two phases of financing, Jeff Kendrick, President and CEO of CEMATRIX, was provided a seat on the three member Board of Directors of Glavel.
“CEMATRIX is pleased to announce that Glavel commissioned its first kiln in March; and are beginning to fill purchase orders and build a backlog,” stated Jeff Kendrick, CEO at CEMATRIX. “Glavel has met the requirements for CEMATRIX to fund the next phases of its planned investment and accordingly, CEMATRIX completed the next phases of its strategic investment commitment to Glavel.”
“This portion of CEMATRIX’s investment will enable Glavel to order the equipment to double its manufacturing capacity and have it installed and operational in early 2023. The continued investment will also enable Glavel to strengthen its sales, marketing and technical support team,” continued Mr. Kendrick. “Glavel’s vision to supply a premium, environmentally friendly product from recycled glass, manufactured using clean energy for green infrastructure and building construction markets throughout North America is now a reality . Glavel’s vision also aligns with the vision of CEMATRIX, which is to provide our clients with the highest quality and most environmentally conscious options available to the market. As such, we believe our two product lines are the future of the lightweight materials market in North America.”
“With CEMATRIX’s continued support, we are pleased to be implementing the next stage of our business plan,” stated Rob Conboy, CEO of Glavel Inc. “This next stage includes the strengthening of our sales and technical team, and the purchase and installation of the second line in our Vermont manufacturing facility. The completion of the second line will help Glavel meet the growing demand for our foam glass products throughout the Northeast U.S. We continue to be excited about our future and that CEMATRIX is now an integral part of our environmentally conscious vision. With the addition of Jeff Kendrick to our board of directors we are even more confident in our ability to navigate this phase of our business development.”