CEMATRIX Corporation
TSX VENTURE : CVX

CEMATRIX Corporation

February 29, 2016 09:25 ET

CEMATRIX Corporation Announces the Signing of $2,000,000 Bank Loan Commitment Letter with the Canadian Western Bank

CALGARY, ALBERTA--(Marketwired - Feb. 29, 2016) - CEMATRIX Corporation (TSX VENTURE:CVX) (the "Corporation" or "CEMATRIX") is pleased to announce that its wholly owned subsidiary, CEMATRIX (Canada) Inc. (the "Cematrix Canada") has entered into a new financing agreement with the Canadian Western Bank (the "Bank") for a $2,000,000 demand operating loan (the "Operating Loan"). The Operating Loan will bear interest at an amount equal to the greater of 4.70% or 2% above the Bank's prime lending rate, and will be secured by a general security agreement providing a first secured interest in the receivables and inventory of Cematrix Canada and guaranteed by the Corporation with the Corporation granting a general security agreement providing a first secured interest in all present and after acquired property of the Corporation.

The Operating Loan will be used to repay a mezzanine loan through Tallinn Capital Mezzanine Limited Partnership with a rate of 16.5% and to finance day-to-day operations of Cematrix Canada.

"The completion of this financing will significantly reduce Cematrix Canada's interest expense and will provide the working capital funding necessary to support the expected continued sales growth in 2016. We look forward to working with the Canadian Western Bank to continue to grow our organization. We also thank Tallinn for providing their financial support" stated Jeff Kendrick, CEMATRIX President and CEO.

CEMATRIX is an Alberta corporation with its head offices in Calgary, Alberta. The Corporation, through its wholly owned subsidiary, is a manufacturer and supplier of technologically advanced cellular concrete products with applications in a variety of markets, including oil and gas construction and infrastructure construction. Cellular concrete provides a cost and labour saving solution for various construction applications.

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 November 4, 2015 under CEMATRIX's profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.

Contact Information

  • Jeff Kendrick
    President and Chief Executive Officer
    (403) 219-0484

    Jeff Walker
    The Howard Group
    Investor Relations
    (888) 221-0915 or (403) 221-0915
    jeff@howardgroupinc.com