CALGARY, Alberta, Aug. 14, 2019 (GLOBE NEWSWIRE) -- CEMATRIX Corporation (CVX.V) (the “Corporation” or “CEMATRIX”) is pleased to announce that further to its press release dated July 4, 2019, it has completed the first tranche and majority of the $2,300,000 non-brokered private placement for 9,880,000 units (each, a “Unit”) at a price of $0.20 per Unit for gross proceeds of $1,976,000 (the “Private Placement”). Each Unit is comprised of one common share and share purchase warrant (each a “Warrant”). Each Warrant is exercisable into one common share for a period of two years at an exercise price of $0.30 per common share.
Pursuant to the terms of the Private Placement, the Corporation paid a finder’s fee and finder’s warrants of 7% of the gross proceeds to qualified non-related parties that participated. The fees amounted to $137,270 and the Corporation issued 686,350 finder’s warrants that entitle the holder thereof to acquire one common share for $0.30 until the expiry date of August 13, 2021.
The net proceeds of the private placement will be used for general working and growth capital in support the proposed acquisition of Pacific International Grout Company. With all of the elements of the acquisition in place, the Corporation intends to complete the proposed acquisition on or about August 30, 2019.
Completion of the private placement is subject to regulatory approval including, but not limited to, the approval of TSX Venture Exchange Inc. The CEMATRIX Shares issued will be subject to a four month hold period from the date of closing. Following closing of the first tranche of the private placement, the Corporation has 54,380,769 common shares issued and outstanding.
CEMATRIX is a rapidly growing, cash flow positive company that manufactures and supplies technologically advanced cellular concrete products developed from proprietary formulations across North America. This unique cement-based material with superior thermal protection delivers a cost-effective, innovative solution to a broad range of problems facing the infrastructure, industrial (including oil and gas) and commercial markets. Through the recent acquisition of Chicago based MixOnSite, CEMATRIX is now North America’s largest Cellular Concrete company.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Jeff Kendrick - President and Chief Executive Officer
Phone: (403) 219-0484
Jeff Walker, The Howard Group – Investor Relations
Phone: (888) 221-0915 or (403) 221-0915
This news release contains forward-looking information within the meaning of applicable securities laws relating to the Private Placement and the use of proceeds of the Private Placement. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Corporation can give no assurance that they will prove to be correct. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. The statements in this press release are made as of the date of this release. The Corporation undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the Corporation, its securities, or its respective financial or operating results.
For additional information on the assumptions made and the risks and uncertainties which may cause actual results to differ from the anticipated results, refer the CEMATRIX’s Management Discussion and Analysis dated August 7, 2019 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.