Cymat Technologies Ltd. Announces Close of $5 Million Equity Financing

By Pr Newswire10 days ago

Symbol: TSXV: CYM

MISSISSAUGA, ON, May 4, 2021 /CNW/ -Cymat Technologies Ltd. (TSXV:CYM) (the Company or Cymat). Further to its press release dated April 26, 2021, Cymat is pleased to announce the completion of a non-brokered private placement of 7,719,723 equity units (the Units) at an issue price of $0.65 per Unit (the Issue Price), for aggregate proceeds of $5,017,820 (the Offering). Higher-than-anticipated demand for the Offering led to the increase in participation beyond the $4.3 Million in commitments previously announced.

AD

Each Unit is comprised of of one (1) common share in the capital of the Company (a Common Share) and one half (1/2) of a Common Share purchase warrant (each whole warrant, a Warrant). Each Warrant entitles the holder to purchase one Common Share at an exercise price of $0.90 for a twenty-four (24) month period. The Company engaged Eight Capital to act as an advisor in connection with this Offering. Cymat will also issue 770,000 Options in compensation for advisory services. Each Option will entitle the holder to purchase one Unit at the Issue Price for an eighteen (18) month period.

The Company plans to use the proceeds from this financing to undertake production capacity and productivity upgrades in its plant to support both growth in its AlusionTM product line and anticipated growth from SmartMetalTM initiatives. Cymat will also use these funds to expand its business development endeavors primarily in the automotive sector and, for general corporate purposes. The Offering is subject to TSX Venture Exchange final review.

Cymat CEO Michael Liik stated, We are extremely pleased by the overwhelming interest in this offering. The proceeds will allow us to both upgrade our production facility and accelerate key business development initiatives. As well, our significantly enhanced balance sheet will undoubtedly strengthen Cymat's negotiating position with OEMs.

Continue read on benzinga.com