CYMAT UPDATES WARRANT REPRICING AND WARRANT EXERCISE INCENTIVE PROGRAM

Rhea-AI Summary

Cymat Technologies Ltd. (TSXV: CYM, OTCQB: CYMHF) announced plans to repricing 3,859,862 outstanding common share purchase Warrants from $0.90 to $0.32, originally set to expire on May 5, 2023. This repricing aims to incentivize early Warrant exercises to bolster the balance sheet for funding automotive and military development projects. An accompanying Incentive Program will issue additional Warrants for every Amended Warrant exercised by April 14, 2023. CEO Michael Liik emphasized the need for ongoing funding for current development programs. The repricing and program are subject to Warrant holder consent and TSX Venture Exchange approval.

Positive

• Repricing of Warrants from $0.90 to $0.32 could increase early exercise and improve the company's balance sheet.
• The Incentive Program offers additional Warrants to encourage early exercise, supporting funding for development in automotive and military sectors.

Negative

• The original Warrant exercise price of $0.90 was out of the money, indicating potential issues with prior funding or market confidence.

Symbols: TSXV: CYM
OTCQB: CYMHF

MISSISSAUGA, ON, March 28, 2023 /PRNewswire/ - Cymat Technologies Ltd. (TSXV: CYM) (OTCQB: CYMHF) (the "Company" or "Cymat") is pleased to provide an update further to its announcement made March 7, 2023, of its intention to reprice outstanding warrants and the initiation of a warrant exercise incentive program.

The Company intends 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 have an exercise price of $0.90 and an expiry date of May 5, 2023. Management believes repricing these "out of the money" Warrants could encourage their earlier exercise, improving the Company's balance sheet and helping to finance a number of business development opportunities in the automotive and military sectors. The Warrants will be deemed to be amended to adjust their exercise price to $0.32 per share (the "Amended Warrants").  The Amended Warrant exercise price has been adjusted from the $0.45 per share exercised price announced on March 7, 2023.

The Amended Warrants will also be deemed to have been amended to include an acceleration provision whereby, if for any ten (10) consecutive trading days (the "Premium Trading Days") following the repricing  the closing price of the Company's common shares ("Common Shares") exceeds $0.40, the Amended Warrants' expiry date will be accelerated  such that holders will have thirty (30) calendar days to exercise the Amended Warrants (if they have not first expired in the normal course)(the "Acceleration Clause"). The activation of the Acceleration Clause will be announced by press release and the 30-day period will commence seven (7) days after the last Premium Trading Day.

The amendment of the Warrants is subject to the prior consent of all Warrant holders and the approval and the approval of TSX Venture Exchange (the "Exchange") ("Warrant Amendment Approval").

The Company also announces that if it obtains Warrant Amendment Approval, it will institute a 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 will offer an inducement to each Warrant holder that exercises its Amended Warrants prior to 4:00 pm Toronto time on April 14, 2023, 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 for a period of two (2) years from the date of the Warrant Amendment Approval and will be subject to a four month and one day hold period from their date of issuance.

The Incentive Program will commence upon receipt of Warrant Amendment Approval and will expire on April 14, 2023 at 4:00 p.m. (Toronto time).

Michael Liik, CEO and Chairman of Cymat commented "The company is currently involved in several automotive and military development programs which require ongoing funding." He added, "The proceeds from the exercise of these warrants will also buttress our balance sheet and demonstrate staying power to our commercial partners at this critical juncture."

The Company intends to issue an updating news release upon receipt, if any, of Warrant Amendment Approval and commencement of the Incentive Program, outlining the terms and conditions and the method of exercising Warrants pursuant to the Incentive Program. The Incentive Program is subject to approval by the Exchange.

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.

Not intended for distribution to United States Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of United States Securities laws.

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SOURCE Cymat Technologies Ltd.

FAQ

What is the new exercise price for the Warrants of Cymat Technologies Ltd. (CYMHF) after the repricing?

The new exercise price for the Warrants has been reduced to $0.32 per share.

What is the deadline for exercising the Amended Warrants under Cymat's Incentive Program?

The deadline for exercising the Amended Warrants is April 14, 2023, at 4:00 p.m. Toronto time.

How many Warrants is Cymat Technologies Ltd. planning to reprice?

Cymat Technologies Ltd. plans to reprice a total of 3,859,862 outstanding Warrants.

What is the purpose of the Incentive Program announced by Cymat Technologies Ltd. (CYMHF)?

The Incentive Program is designed to encourage the early exercise of the Amended Warrants by offering additional Common Share purchase Warrants.

What sectors will benefit from the proceeds of the exercised Warrants for Cymat Technologies Ltd.?

The proceeds will support business development opportunities in the automotive and military sectors.