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Cymat Technologies Announces $12 Million Draw-Down Equity Financing

Date: Tuesday, June 4, 2019 12:39 PM EST

Cymat Technologies Ltd. (CYMHF), an innovative materials company based in Toronto, Canada, has announced that it has entered into a draw-down equity facility of up to CAD $12,000,000 with Ontario-based Alumina Partners Ltd., a subsidiary of New York-based private equity firm Alumina Partners, LLC.

The draw-down nature of the facility ensures that Cymat Technologies has the flexibility to access capital as needed while pursuing its evolving list of projects.  

In a press release, Cymat Technologies CEO, Michael Liik, noted: "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."

The agreement details the purchase of up to $12,000,000 CAD of the tranche (units) consisting of one common share and one common share purchase warrant, at discounts ranging between 15%-25% of the closing price of the shares on the trading day prior to Cymat's drawdown notice to Alumina.  Under the agreement, Cymat Technologies also has the right to draw down on the facility, at its sole discretion, through equity private placement tranches of up to $500,000 each. This will allow Cymat Technologies to consider such factors as the market, pricing and timing when drawing on funds, so as to minimize dilution to existing shareholders.

"We are excited to work with Alumina and are grateful for the opportunity that it affords us," said Liik.  

Speaking to the agreement, Alumina Partners Executive, Adi Nahmani, noted: "We have been very impressed with Cymat's portfolio of actively progressing business opportunities. 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."

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