CEMATRIX Announces $7.6 Million in New Contracts and a Reduction in Scope of a Previously Awarded Tunnel Project
April 26 2024 - 7:30AM
CEMATRIX Corporation (TSXV: CVX) (OTCQB: CTXXF)
("
CEMATRIX" or the "
Company") a
North American leading manufacturer and supplier of technologically
advanced cellular concrete products today announced that it has
executed $7.6 million in new contracts.
A portion of the $7.6 million in new contracts
is derived from two projects, with price tags greater than $1
million Canadian, and were previously included in Contracts in
Process. These projects include a $1.9 million load reducing fill
project and a $1.4 million dollar tunnel project which are located
in the U.S. The majority of these two projects are scheduled to be
completed in 2024. The balance of the new contracts totalling
approximately $4.3 million is made up of numerous projects up to
$1.0 million each which are also scheduled to be completed in
2024.
“These new contracts reflect the continued
organic growth of our cellular concrete market in the United States
and Canada and is a testament to the hard work of our sales teams
who have been instrumental in educating the industry and growing
our company backlog,” stated Jeff Kendrick, CEMATRIX President and
CEO. “We continue to land numerous projects for varying
applications across our market territory as the choice of cellular
concrete for these applications becomes the standard compared to
the legacy products that support this industry.”
The Company also announces that it is removing
approximately $17 million from its backlog due to an unusual
reduction in scope of a $32 million tunnel project that was
previously awarded by Letter of Intent in 2020 (December 22, 2020
Press Release). This tunnel project is currently underway, with our
portion of the project now scheduled to proceed later this year and
is to be completed in 2025. With this change in scope and the
subsequent reduction in the backlog associated with this change and
factoring in new project wins and after deducting sales to the end
of the first quarter, CEMATRIX’S backlog is now $80.6 million.
“While we are disappointed in the reduction in
scope of this one tunnel project that arose from using a smaller
diameter tunnel boring machine than was originally intended and
approved by the owner, we are still pleased that the tunnel project
is going ahead later this year with a long time and important
customer of CEMATRIX, through Pacific International Grout Company,
our US tunnel grouting subsidiary,” continued Jeff Kendrick,
President and CEO of CEMATRIX. “This assumes that the contract is
finalized in the same form and amount that is presently being
negotiated. Although the reduction affects our short-term backlog
totals that are related mainly to the 2025 fiscal year, management
believes that it will have minimal effect on the current year and
will not affect the continued growth of our markets throughout
North America.”
The Corporation’s Backlog is defined as
Contracted plus Contracts in Process net of sales completed to
date. Contracts in Process are defined as projects where the
related contract is in office for review or signature; or signed
and returned to the client for their signature; or is in the post
award project submission process; or is awarded by letter of
intent; or is awarded by some other form of written
communication.
ABOUT CEMATRIX
CEMATRIX is a rapidly growing 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 cost-effective, innovative solutions to
a broad range of problems facing the infrastructure, industrial,
energy and commercial markets. The Company’s wholly owned operating
subsidiaries include CEMATRIX (Canada) Inc. (“CCI”), Chicago based
MixOnSite USA Inc. (“MOS”) and Bellingham based Pacific
International Grout Company (“PIGCO”). This has made CEMATRIX a
true leader in North America’s growing Cellular Concrete market.
For more information, please visit our website at
www.cematrix.com.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING
STATEMENTS
This news release contains forward-looking
statements and forward-looking information (together,
"forward-looking statements") within the meaning of applicable
securities laws. All statements, other than statements of
historical facts, are forward-looking statements. Generally,
forward-looking statements can be identified by the use of
terminology such as "plans", "expects", "estimates", "intends",
"anticipates", "believes" or variations of such words, or
statements that certain actions, events or results "may", "could",
"would", "might", "will be taken", "occur" or "be achieved". The
forward-looking statements contained in this news release are based
on certain key expectations and assumptions made by the Company,
including satisfaction of regulatory requirements in various
jurisdictions and the Company’s anticipated use of the net proceeds
of the Offering. Forward looking statements involve risks,
uncertainties and other factors disclosed under the heading "Risk
Factors" and elsewhere in the Company's filings with Canadian
securities regulators, which could cause actual results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Although the Company believes that the
assumptions and factors used in preparing these forward-looking
statements are reasonable based upon the information currently
available to management as of the date hereof, actual results and
developments may differ materially from those contemplated by these
statements. Readers are therefore cautioned not to place undue
reliance on these statements, which only apply as of the date of
this news release, and no assurance can be given that such events
will occur in the disclosed times frames or at all. Except where
required by applicable law, the Company disclaims any intention or
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or
otherwise.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the 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
Glen Akselrod – President, Bristol CapitalPhone: (905) 326 1888
ext 1glen@bristolir.com
Jeff Walker, The Howard Group – Investor
RelationsPhone: (888) 221-0915 or (403) 221-0915
jeff@howardgroupinc.com
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