CYMAT ANNOUNCES APPROVAL OF WARRANT REPRICING AND WARRANT EXERCISE INCENTIVE PROGRAM

Rhea-AI Summary

Cymat Technologies Ltd. (TSXV: CYM, OTCQB: CYMHF) announced a significant update on April 21, 2023, regarding the repricing of approximately 3,859,862 outstanding common share purchase warrants originally set at $0.90 with an expiry of May 5, 2023. The new exercise price is $0.32, while the expiry date remains unchanged. The TSX Venture Exchange approved this amendment along with a warrant exercise incentive program to encourage early exercise of the amended warrants. Each holder exercising by April 28, 2023 will receive an additional Incentive Warrant to purchase shares at $0.50 until April 28, 2025. Holders must be accredited investors to qualify for these incentives.

Positive

• Successful approval of warrant repricing from $0.90 to $0.32 enhances liquidity for investors.
• Incentive program encourages early exercise of warrants, potentially increasing share capital.

Negative

• None.

MISSISSAUGA, ON, April 21, 2023 /PRNewswire/ - Cymat Technologies Ltd. (TSXV: CYM) (OTCQB: CYMHF) (the "Company" or "Cymat") is pleased to provide an update further to its press release issued April 18, 2023, regarding its repricing of certain outstanding warrants and the initiation of a warrant exercise incentive program.

The Company has received approval from the TSX Venture Exchange (the "Exchange") to reprice an aggregate of 3,859,862 outstanding common share purchase warrants ("Warrants") issued pursuant to its May 5, 2021 private placement. The Warrants originally had an exercise price of $0.90 and an expiry date of May 5, 2023. The Warrants are now deemed to be amended to adjust their exercise price to $0.32 per share (the "Amended Warrants").  The expiry date remains unchanged.

The Company has also received Exchange approval for its warrant exercise incentive program (the "Incentive Program") designed to encourage the early exercise of the 3,859,862 Amended Warrants. Under the Incentive Program, the Company is offering an inducement to each Warrant holder that exercises their Amended Warrants early by the issuance of one additional Common Share purchase warrant (an "Incentive Warrant") for each Warrant exercised. Each Incentive Warrant will entitle the holder to purchase one additional Common Share of the Company at a price of $0.50 until April 28, 2025.

In order to receive the Incentive Warrant, the holder of the Amended Warrant must be an "accredited investor" under Ontario securities law and must exercise the Amended Warrant no later than 4:00 pm Toronto time on April 28, 2023. Incentive Warrants will be subject to a four month and one day hold period from the date of the Incentive Warrant issuance.

About Cymat Technologies Ltd.

Cymat Technologies Ltd. has the global rights, through patents and established know-how, to manufacture and sell Stabilized Aluminum Foam ("SAF"), a unique, ultra-light, cellular metallic material. The proprietary production process entails the injection of gases through a molten bath of alloyed aluminum infused with ceramic particles. The result is an advanced, lightweight, recyclable material that exhibits unique characteristics including customizable density and dimensions; mechanical energy absorption; thermal and acoustic insulation; and time, temperature, and strain-rate insensitivity. A key benefit of this continuous foam production process is its scalability and resultant low cost of production. SAF is used in such industries as architectural design, military and automotive. Cymat markets its architectural SAF under the Alusion^TM brand and its automotive and military SAF under the SmartMetal^TM brand. For further information, please visit our website at www.cymat.com. 

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding the proposed amendments to the Warrants, the Company's proposed use of proceeds from the exercise of the Amended Warrants and the Incentive Warrants, and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company including, but not limited to, the failure to obtain the Warrant Amendment Approval, failure to obtain Exchange approval for the Warrant amendments and the Incentive Program, impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Certain material assumptions regarding such forward-looking statements may be discussed in this news release and the Company's annual and quarterly management's discussion and analysis filed at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States, or to or for the account or benefit of any person in the United States, absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any common shares in the United States, or in any other jurisdiction in which such offer, solicitation or sale would be unlawful. We seek safe harbour.

Neither the Toronto Venture Exchange (TSXV) nor its Market Regulator (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.

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SOURCE Cymat Technologies Ltd.

FAQ

What is the new exercise price for the amended warrants of Cymat Technologies (CYMHF)?

The new exercise price for the amended warrants is $0.32 per share.

When does the warrant exercise incentive program for Cymat Technologies expire?

The incentive program expires on April 28, 2023.

What benefits do holders of the amended warrants receive under the incentive program?

Holders will receive one additional Incentive Warrant for each Amended Warrant exercised early.

What is the exercise price for the additional Incentive Warrants in Cymat Technologies?

The exercise price for the additional Incentive Warrants is $0.50 per share.

What is the expiry date for the Incentive Warrants issued by Cymat Technologies?

The Incentive Warrants will expire on April 28, 2025.