Cymat Technologies completes $1.5 million private placement financing

Cymat Technologies Ltd. (TSXV: CYM) (OTCQB: CYMHF) completed a non-brokered private placement of equity units, generating gross proceeds of $1.5 million, according to a company statement.

The company issued 11,534,615 common shares and an equal number of common share purchase warrants. Each unit was priced at $0.13, consisting of one common share and one warrant. The warrants allow holders to purchase one common share at $0.18 for 24 months.

Cymat will use the proceeds for capital equipment purchases to support a business development initiative and working capital requirements. No finder's fees or broker warrants were issued in connection with the offering.

The warrants include provisions that prevent warrant holders from exercising warrants that would create a new insider unless required submissions are made to and approvals are received from the TSX Venture Exchange.

Michael Liik, Cymat's CEO and Chairman, stated the financing provides capital to execute on a previously announced Rio Tinto Alcan business opportunity and fund automotive initiatives. He said the company plans to host a webinar to update stakeholders on progress of these initiatives.

The securities issued under the offering are subject to a four-month trading hold period from their issuance date under Canadian securities laws. The offering terms require approval from the TSX Venture Exchange.

Cymat manufactures Stabilized Aluminum Foam, a lightweight cellular metallic material used in architectural design, military and automotive applications.

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