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MISSISSAUGA - Cymat Technologies Ltd. (TSXV:CYM) (OTCQB:CYMHF), a specialized materials company with a market capitalization of $73.37 million and trailing twelve-month revenue of $1.71 million, announced Thursday it has completed a non-brokered private placement raising gross proceeds of $1,499,500.
The offering consisted of equity units priced at $0.13 each, with each unit comprising one common share and one common share purchase warrant. The warrants allow holders to purchase one common share at $0.18 for a 24-month period.
As a result of the transaction, Cymat will issue 11,534,615 common shares and an equal number of warrants. No finder’s fees or broker warrants will be issued in connection with this offering.
The company plans to use the proceeds for capital equipment purchases supporting a strategic business development initiative and for working capital requirements.
Securities issued under this offering will be subject to a four-month trading hold period from the date of issuance, in accordance with Canadian securities laws.
The funding comes as Cymat’s stock has shown strong momentum, with InvestingPro data showing a remarkable 123% return over the past six months. Michael Liik, Cymat’s CEO and Chairman, said the funds will help execute "the previously announced Rio Tinto Alcan business opportunity as well as funding for our strategic automotive initiatives underway." InvestingPro subscribers have access to 10+ additional insights about Cymat’s financial health and market performance.
The terms of the offering are subject to approval from the TSX Venture Exchange.
Cymat Technologies holds global rights to manufacture and sell Stabilized Aluminum Foam, a lightweight cellular metallic material used in architectural design, military, and automotive industries, according to the company’s press release statement.
In other recent news, Cymat Technologies Ltd. has entered into a partnership with a global Tier 1 automotive parts manufacturer. This collaboration aims to design and produce lightweight, energy-absorbing components for the automotive industry. The agreement will help Cymat overcome its current manufacturing limitations in assembling complex stabilized aluminum foam (SAF) components. While Cymat can produce the SAF elements, it does not have the facilities to assemble complex SAF-filled aluminum parts. This partnership is a significant development for Cymat as it seeks to expand its capabilities in the automotive sector. The name of the partnering automotive parts manufacturer has not been disclosed. These recent developments highlight Cymat’s strategic moves to enhance its production capabilities and industry presence.
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