NEWS....P.P. Agreement...Cymat enters into agreement for Cdn$2.5 million private placement
08:38 EDT Friday, July 16, 2004
Listing: TSX
Symbol: CYM
TORONTO, July 16 /CNW/ - Cymat Corp. (TSX:CYM), an innovative materials technology company, announced that it has agreed to engage First Associates Investments Inc., Jennings Capital Inc. and Fraser MacKenzie Limited to act as agents for a private placement of common shares and common share purchase warrants for aggregate gross proceeds of $2,500,000.
Each unit, consisting of one common share and one quarter warrant, will be priced at $0.40 per unit. Each whole warrant will entitle the holder to acquire one common share at a price of $0.50 at any time up until 36 months from the closing date of this offering. The transaction is expected to close on or about July 30, 2004. Proceeds from the transaction will be used to advance the Company's existing development programs with a number of European and North American Tier 1 automotive partners.
"Since the fall, Cymat has been extremely focused on technology advancements. We have been successful in improving our foam to the point that we can now satisfy many of the stringent requirements of our automotive co-development partners. As a result, we are accelerating commercial development with our current and potential automotive customers," said Dr. Paul A. Tichauer, the Company's President and CEO.
About Cymat
Cymat develops innovative materials for industry. The company has exclusive worldwide rights, through patents and licenses, for producing stabilized aluminum foam product. The proprietary, versatile process to produce this material combines alloyed aluminum with a metal matrix composite to create strong, lightweight panels and shapes, or to fill cavities. The result is a revolutionary material with a wide array of benefits, including a high strength-to-weight ratio, mechanical energy absorption, thermal and acoustic insulation, recyclability and relatively low cost of production. Cymat's research and development group is collaborating with a number of partners spanning the automotive, transportation and construction industries. The company's principal focus is on automotive, where aluminum foam is ideally suited to the industry's objectives to make vehicles lighter, safer and better for the environment. For further information, visit the Web site www.cymat.com.
The foregoing press release contains forward-looking statements relating to the development of markets, development programs, future revenues and improvements in technology, which are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include the availability of funding, existing and future relationships with suppliers and manufacturers, the results of research and development activities, risks of technological breakthroughs that make Cymat stabilized aluminum foam less attractive, general industry and market conditions, availability of qualified personnel, and reliance on co-development partners. For additional information with respect to these and other factors, see the reports filed by Cymat Corp. with the Ontario Securities Commission. Cymat Corp. disclaims any intention or obligation to update or revise any forward-looking statements.
/For further information: Investors and Media: Robert Cinapri, Director of Finance & Corporate Secretary, Cymat Corp., (905) 696-2426, Email: investor(at)cymat.com