CALGARY, ALBERTA–(Marketwired – June 2, 2016) – CEMATRIX Corporation (TSX VENTURE:CVX) (the “Corporation” or “CEMATRIX“) announces that its wholly owned subsidiary, CEMATRIX (Canada) Inc. (the “Company“) has entered into an agreement with the Business Development Bank of Canada (the “BDC“) which will provide the Company with $500,000 of working capital financing (the “BDC Financing“).
“The cellular concrete market in North America continues to grow and CEMATRIX continues to put itself in a better position to be able to facilitate this growth. This new working capital financing through the BDC, in combination with the new $2,000,000 operating financing provided by the Canadian Western Bank, will ensure that CEMATRIX is in a strong position moving forward and enable us to add and train the additional operation’s staff necessary to sustain this growth” stated Jeff Kendrick, CEMATRIX President and CEO.
The interest rate for the BDC Financing is variable and is 3.86% above the BDC floating base rate, currently set at 4.70%. The BDC Financing is repayable over six years, with seasonal payments of principal required from July to December of each year starting in July 2017. Interest on the BDC Financing is payable monthly commencing July 1, 2016.
The BDC Financing is secured through existing security over the Company’s current owned equipment and property as well as existing guarantees and security provided by CEMATRIX and certain subsidiaries of the Company.
CEMATRIX is an Alberta corporation with its head offices in Calgary, Alberta. The Corporation, through its wholly owned subsidiary, is a rapidly growing, cash flow positive company that manufactures and supplies technologically advanced cellular concrete products developed from proprietary formulations. This unique cement based material with superior thermal protection delivers a cost-effective, innovative solution to a broad range of problems facing the infrastructure, industrial (including oil and gas) and commercial construction markets.
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.
Forward-looking information: This news release contains certain information that is forward looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as “anticipate”, expect”, “would’ or other similar words). Forward looking statements in this document are intended to provide CEMATRIX security holders and potential investors with information regarding CEMATRIX and its subsidiaries’ future financial and operations plans and outlook. All forward looking statements reflect CEMATRIX’s beliefs and assumptions based on information available at the time the statements were made. Readers are cautioned not to place undue reliance on this forward looking information. CEMATRIX undertakes no obligation to update or revise forward looking information except as required by law. For additional information on the assumptions made and the risks and uncertainties which may cause actual results to differ from the anticipated results, refer the CEMATRIX’s Management Discussion and Analysis dated May 4, 2016 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.
Jeff Kendrick
President and Chief Executive Officer
(403) 219-0484
The Howard Group
Jeff Walker
Investor Relations
(888) 221-0915 or (403) 221-0915
[email protected]
