CYM Cymat Technologies Ltd

MISSISSAUGA, ON, Aug. 30, 2022 /CNW/ - Cymat Technologies Ltd. (TSXV: CYM) (OTCQB: CYMHF) (the "Company" or "Cymat") is pleased to announce its results for the fiscal year ended April 30, 2022.

Sales for the year were approximately $1M less than the record-high sales of $4.2M in the previous fiscal year. Sales for the current year would have been higher by $569,000, were it not for supply chain interruptions associated with COVID-19 at a number of customers that resulted in panels that were manufactured before Cymat's year end, not reaching the delivery destination until after April 30, 2022.

The loss from operations of $4.3 Million (2021 – income of $62,000) included non-cash charges of $2M, a number that was $1.8M higher than similar non-cash charges for the prior fiscal year. The valuation of stock options issued to employees and consultants accounted for most of this differential. Additionally, operating expenses for the current period were increased as a result of management's decision to expand business development initiatives targeting the automotive industry.  Increased resources focusing on the automotive market led to the hiring of senior industry executives to the new roles of Chief Operating Officer and Chief Commercial Officer, a senior US-based consultant, two engineering staff and the addition of production workers for a second shift. 

Subsequent to year end, this increased investment in automotive initiatives is demonstrating positive results. As Cymat recently announced, the Company signed a component development agreement with a global automotive manufacturer to optimize an element of a battery enclosure system for an existing electric vehicle ("EV") platform. Management believes that this is a tangible milestone in its plan to achieve a serial automotive part production contract. Cymat plans to continue to use proceeds from the $5M private placement financing closed at the beginning of the April 30, 2022 fiscal year to manufacturing infrastructure in order to exhibit its high-volume production readiness to automotive OEM's and Tier 1 suppliers.

Key financial data for the year ended April 30, 2022 and the two previous fiscal years include the following (All items in $ 000's, except net loss per share):

Michael Liik, Chairman and CEO stated that "While the financial results from the last fiscal year were unfortunately impacted by COVID-related supply chain issues as well our conscious decision to significantly expand our senior management team, we are pleased with the early results emanating from this investment." He went on to say that "We also expect to see significant progress in our military and architectural verticals this coming year despite an uncertain macro environment"

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 future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co-operations, budgets, cost and plans 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 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.

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SOURCE Cymat Technologies Ltd.