News Releases

Cymat Secures up to $12,000,000 in Equity Financing

Toronto, Ontario

Cymat Technologies Ltd. (the “Company” or “Cymat”) is pleased to announce that it has entered into a draw-down equity facility (the “Agreement”) for proceeds of up to CAD $12,000,000 with Alumina Partners (Ontario) Ltd. (“Alumina”), a subsidiary of New York-based private equity firm Alumina Partners, LLC.

The Agreement is structured to allow Cymat quick access to financing for growth capital. Michael Liik, Cymat CEO commented, “We have been pursuing several initiatives that have now evolved to the point that, if successful, will require substantial funding. More specifically, securing this stand-by financing facility will enable us to strengthen our negotiating position with partners and potential customers. It will also allow us to increase our production capacity in a timely manner should these opportunities come to fruition.” Mr. Liik added “We are excited to work with Alumina and are grateful for the opportunity that it affords us.” The Agreement, which has a 24 month term, will provide Cymat with the ability, but not the obligation, to draw down funds at management’s discretion. This will allow the Company to consider such factors as the market, pricing and timing when drawing on funds, so as to minimize dilution to existing shareholders.

Under the Agreement, the Company has the right to draw down on the facility, at its sole discretion, through equity private placement tranches of up to $500,000 each. A tranche is comprised of units (“Units”) with each individual unit consisting of one common share and one common share purchase warrant (“Warrant”). The Units will be priced at a discount of between 15%-25% of the closing price of the shares on the trading day prior to Cymat’s drawdown notice to Alumina. The Warrants will be issued at a 25% premium over the market share price, at the time of issuance and have a term of three years. The Warrant will have an accelerated expiry clause subject to the terms of the Agreement. There are no standby charges nor other upfront fees associated with the Agreement.

“We have been very impressed with Cymat’s portfolio of actively progressing business opportunities,” added Adi Nahmani, Managing Member of Alumina Partners, LLC. “From the automotive to the architectural industries, to defense contracting and ancillary practices besides, Cymat’s leadership team has demonstrated the persistence of vision to cultivate promising markets and complementary partners in those markets. As the lifecycles of those projects continue to mature, we look forward to seeing Cymat reach their inflection points and begin deploying meaningful capital to drive revenue in the near future.”

The Company also announced that in conjunction with its annual strategic review process and in accordance with Cymat’s stock option plan, the Company has granted 1,085,000 incentive stock options to certain of its directors, officers and employees, with each option being exercisable into one common share of Cymat at $0.31 per share until May 23, 2024. The options vest in three tranches over a two year period.

About Cymat:

Cymat Technologies Ltd. is an innovative materials technology company employing a proprietary process to manufacture our unique Stabilized Aluminum Foam (“SAF”). Cymat SAF is an advanced lightweight recyclable material with a wide array of features including customizable density and dimensions, energy absorption and thermal and acoustic insulation. Cymat is focused on producing SAF for architecture, blast mitigation, automotive, transportation and industrial markets. Cymat’s architectural brand, Alusion™, has become an accepted choice for superior and unique cladding and façade alternatives for the building industry. The Alusion™ brand is recognized globally, having completed projects on almost every continent.

Cymat’s SmartMetal™ division has developed proven products for energy absorption applications including blast mitigation for the military sector and impact reduction for the nuclear energy sector. Cymat is working with numerous manufacturers and solution providers around the world for the integration of SmartMetal™ into kinetic energy management systems. Cymat is based in Mississauga, just outside Toronto, where it operates a 2.400 sq. metre plant. For further information on Cymat, please visit our Web site www.cymat.com.

For further information: please contact:

Investors and Media:

Michael Liik, CEO
Cymat Technologies Ltd
416-704-6217
liik@cymat.com

Investor Cubed Inc.:
Neil Simon, CEO
647-258-3310
nsimon@investor3.ca