CALGARY, Alberta, July 04, 2019 (GLOBE NEWSWIRE) -- CEMATRIX Corporation (CVX.V) (the “Corporation” or “CEMATRIX”) is pleased to announce a non-brokered private placement of up to 11,500,000 units (each, a “Unit”) at a price of $0.20 per Unit for gross proceeds of up to $2,300,000. Each Unit will be comprised of one common share of the Corporation (a “Common Share”) and one warrant (each, a “Warrant”). Each whole Warrant will be exercisable into one Common Share for a period of two years at an exercise price of $0.30 per Common Share (the “Offering”).
In connection with the Offering, subject to applicable securities laws and TSX Venture Exchange policies, the Corporation may pay a finder's fee and finder's warrants of up to 7% of the gross proceeds of the Offering to certain qualified, non-related parties who act as finders in connection with the Offering. Each finder's warrant entitles the holder thereof to acquire one Common Share for $0.30 for up to two years from the closing of the Offering.
The proceeds of the Offering will be used for growth working capital and may be used to finance a portion of the purchase price for the acquisition of the shares of Pacific International Grout Company, as announced in the Corporation’s news release dated June 26, 2019. The USD$3.25M cash portion of the acquisition price is in place, by way of an offer letter for term debt from one of CEMATRIX’s key lending institutions, in the amount of USD$2.80M with the difference in the down payment of USD$0.45M tentatively arranged to be a vendor take back, the terms of which are to be finalized.
There is no material fact or material change about the Corporation that has not been generally disclosed. This financing is subject to TSX Venture Exchange approval.
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
Forward-looking information: This news release contains certain information that is forward looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as “anticipate”, expect”, “would’ or other similar words). Forward looking statements in this document are intended to provide CEMATRIX security holders and potential investors with information regarding CEMATRIX and its subsidiaries’ future financial and operations plans and outlook. All forward looking statements reflect CEMATRIX’s beliefs and assumptions based on information available at the time the statements were made. Readers are cautioned not to place undue reliance on this forward looking information. CEMATRIX undertakes no obligation to update or revise forward looking information except as required by law. 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 April 1, 2019 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.