CYMAT PROVIDES CORPORATE UPDATE ON AUTOMOTIVE, MILITARY AND ARCHITECTURAL INITIATIVES AND PROGRESS
MISSISSAUGA, ON, June 29, 2023 /CNW/ - Cymat Technologies Ltd. (TSXV: CYM) (OTCQB: CYMHF) (the "Company" or "Cymat") is pleased to provide the following updates on the Company's advances in its current technical and business development initiatives, predominantly for its architectural, automotive, and military verticals, which are now expected to generate meaningful revenue on or before fiscal year end.
Cymat's most recent announcement (June 20, 2023), described the advancement to prototyping and physical testing stage of its innovative composite solution for the underside impact protection of a new electric vehicle's battery enclosure. Further to this, Cymat is excited to announce that a testing facility has now been selected with testing scheduled for early August 2023. Upon the successful completion of these tests, Cymat expects to commence with serial production pricing negotiations that should culminate in a purchase order The Company is also close to finalizing a manufacturing arrangement to deliver the component, with an initial order of 46,000 components per year with delivery commencing within 12 months.
Further to the releases issued July 5, 2022, and December 13, 2022, announcing two component development agreements with a global automotive manufacturer ("OEM"), Cymat is pleased to advise that it remains actively engaged with the OEM on both components. Although circumstances at the OEM have led to longer than originally projected timelines, the Company expects to advance these development programs to the prototyping stage and ultimately to significant production orders. The OEM has acknowledged the merits of Cymat's innovative solutions and their utility for lighter, safer, and more economical components for EV battery enclosures. Accordingly, the OEM has indicated an interest in engaging Cymat to undertake additional component development work in this area.
The Company's release of September 20, 2021, disclosed initial production orders for underbelly blast protection kits from an Asian military vehicle manufacturer. Cymat is now pleased to announce that it is currently in negotiations with the manufacturer for a long-term serial production contract for these kits which it expects to finalize imminently. This contract will initially cover approximately half of its 700-vehicle fleet with kits to be delivered over the following 3 years. Cymat is also seeing indications that the vehicle manufacturer is actively marketing these kits to other country's militaries that currently deploy the same vehicle.
In addition, the Company's multi-threat panel customer has recently received full US military certification for the first variant of its product and is scheduled to complete final certification of the other variant in August. Upon successful achievement of the latter, Cymat expects to receive substantial orders for its military grade panels to fulfill this customer's order pipeline.
The Company has received notice from NUVIA Group, its primary nuclear distributor in France, that Cymat will soon receive a multi-million-dollar panel order for a major new nuclear installation in France. The application is for protection against external threats and seismic events, which establishes an entirely new use-case for SmartMetalTM in this industry. This adds a substantial new revenue stream for Cymat.
Cymat previously issued a release on November 25, 2019, announcing that the French Armed Forces had certified the use of non-lethal bullets utilizing Cymat's SmartMetalTM. The Company is pleased to announce that after an extended period of inactivity, Cymat's customer, Nobel Sport, recently requested a quote for a further order of 25,000 bullets for the French military. Cymat has provided the quotation and is discussing the delivery schedule with Nobel Sport. Entry into this large market opens up a very scalable opportunity for Cymat to become a dominant supplier to the non-lethal bullet market.
Cymat is entering its 2024 fiscal year with a record order pipeline of over $8 million. It appears that delays in construction start dates for its major cladding projects, experienced during the fall of last year and into the first calendar quarter of 2023 in both Europe and the U.S., have finally abated. The Company has also been replacing underperforming agents and distributors with new ones and providing them more extensive marketing and technical support. This has resulted in a significant increase in quoting activity over the previous year, leading Cymat to foresee substantial AlusionTM sales growth this year.
Several years ago, Cymat announced a joint venture with Alucoil in Spain, to produce brazed aluminum sheet/aluminum foam composite panels to be utilized principally in the architectural cladding market. While a plant has already been constructed in Spain, Cymat is still working with Rio Tinto and the National Research Council of Canada ("NRC") to perfect the brazing technology to be deployed therein. The NRC has successfully completed the first of 2 phases of this work and Cymat expects the final phase to commence imminently.
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 AlusionTM brand and its automotive and military SAF under the SmartMetalTM 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.
SOURCE Cymat Technologies Ltd.
Company Contact: Michael Liik CEO, Email: [email protected], Telephone: (416) 704-6217, Website: www.cymat.com; For Further Information: Investor Cubed Inc., Neil Simon, CEO, Email: [email protected], Telephone: (647) 258-3310
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