CEMATRIX Corporation

August 21, 2006 18:58 ET

CEMATRIX Corporation Announces Initial Closing of Unit Financing

CALGARY, ALBERTA--(CCNMatthews - Aug. 21, 2006) - CEMATRIX Corporation (TSX VENTURE:CVX) (the "Corporation") is pleased to announce that it has completed an initial closing of units ("Units") in the provinces of British Columbia and Alberta pursuant to a TSX Venture Exchange (the "Exchange") short form offering document dated July 18, 2006, as previously announced in the press release of the Corporation dated July 18, 2006 (the "Offering"). A total of 3,297,167 Units were issued at a price of $0.30 per Unit for total gross proceeds of $989,150.10. Each Unit consists of one common share in the capital of the Corporation ("Common Share") and one-half of one transferable Common Share purchase warrant ("Warrant"). Each whole Warrant will entitle the holder to acquire one Common Share at a price of $0.40 per share until August 18, 2008, subject to earlier expiry where the Common Shares trade at $0.70 or higher on the Exchange for 20 consecutive trading days and the cumulative trading volume of the Common Shares is equal to at least 500,000 Common Shares during that period. The Offering has been conditionally approved by the Exchange.

Integral Wealth Securities Limited (the "Agent"), together with its sub-agents, acted as the agent for the Offering. The Corporation paid an aggregate cash commission equal to 8.5% of the gross proceeds of the Offering and granted options to the Agent and its sub-agents to purchase 280,260 Units until August 18, 2007.

The Corporation will use the proceeds of the Offering for capital expenditures, the retirement of debt, to meet the Corporation's bonding requirements and for general working capital purposes.

The Corporation is situated in Calgary, Alberta and, through its wholly owned subsidiary, is a manufacturer and supplier of technologically advanced cellular concrete products with applications in a variety of markets, currently focusing on the oil and gas construction and infrastructure construction markets. Cellular concrete has been utilized as a replacement for rigid and other insulating materials in frost-susceptible or permafrost conditions. Cellular concrete is also used in void filling situations and as a replacement for granular fills and weak or unstable soils. The Corporation is able to vary the cellular concrete properties for specific applications to address common construction problems.

Forward-looking statements: Except for statements of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this News Release.

Contact Information

  • CEMATRIX Corporation
    Jeffrey Kendrick
    President and Chief Executive Officer
    (403) 219-0484