Listing: TSX
Symbol: CYM
TORONTO, April 22, 2013 /CNW/ - Cymat Technologies Ltd. (the "Company"
or "Cymat") announced today that it has signed a debt Settlement
Agreement with Industry Canada regarding the funds repayable under a
contribution agreement through the Technology Partnerships Canada
("TPC") Program. Under the former TPC arrangement, the Company was
required to make an annual royalty payment of 3.45% on aluminum foam
sales. Under this arrangement, approximately $6,366,000 remained to be
paid. This obligation was reflected on Cymat's January 31, 2013
financial statements as a $2,148,000 liability - an amount equal to the
present value of the forecast royalty payment stream.
Under the Settlement Agreement, Industry Canada has agreed to accept
payments in the aggregate amount of $175,000 in settlement of Cymat's
entire obligation under the TPC program. The settlement is payable in
35 monthly installments of $5,000 each, commencing on May 15, 2013. In
addition, once three installment payments have been made, the Company
has the option of settling the remaining amount owing with a lump sum
payment of $100,000. This lump sum payment option is available to
Cymat up July 15, 2014.
About Cymat:
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.
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, risks relating to the
breadth, scope and enforceability of intellectual property rights,
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 Technologies Ltd. with the Ontario Securities
Commission. Cymat disclaims any intention or obligation to update or
revise any forward-looking statements.
SOURCE: Cymat Technologies Ltd.
