CYMAT ENTERS INTO LETTER OF INTENT WITH RIO TINTO ALCAN TO ACQUIRE TECHNOLOGY & ASSUME CUSTOMERS OF THEIR PROPRIETARY ALUMINUM METAL MATRIX COMPOSITES BUSINESS
Cymat Technologies (OTCQB: CYMHF) has entered into a Letter of Intent with Rio Tinto Alcan (RTA) to acquire their aluminum metal matrix composites (MMC) technology and customer base. RTA, the world's only major supplier of this proprietary MMC, is exiting the business due to strategic reorganization. The acquisition could generate incremental annual revenue of $7.5M-$10M for Cymat.
The company plans to establish MMC production at its Mississauga plant, leveraging existing workforce and facilities. Capital costs are estimated at $2M-$2.5M, with technology transfer expenses in the low to mid six-figure range. The initiative will be financed through warrant proceeds and equipment financing. The acquisition offers dual benefits: adding substantial uncorrelated revenue and reducing Cymat's primary input material costs significantly.
Cymat Technologies (OTCQB: CYMHF) ha firmato una Lettera di Intenti con Rio Tinto Alcan (RTA) per acquisire la loro tecnologia di compositi a matrice metallica in alluminio (MMC) e la base clienti. RTA, unico grande fornitore mondiale di questa tecnologia MMC proprietaria, sta uscendo dal settore a causa di una riorganizzazione strategica. L'acquisizione potrebbe generare per Cymat un fatturato annuale incrementale di 7,5-10 milioni di dollari.
L'azienda prevede di avviare la produzione di MMC presso il suo stabilimento di Mississauga, sfruttando la forza lavoro e le strutture esistenti. I costi di investimento sono stimati tra 2 e 2,5 milioni di dollari, mentre le spese per il trasferimento tecnologico si aggirano tra le basse e medie sei cifre. L'iniziativa sar脿 finanziata tramite i proventi dei warrant e finanziamenti per l'acquisto di attrezzature. L'acquisizione offre un duplice vantaggio: aggiungere un significativo fatturato non correlato e ridurre in modo sostanziale i costi del principale materiale di input di Cymat.
Cymat Technologies (OTCQB: CYMHF) ha firmado una Carta de Intenci贸n con Rio Tinto Alcan (RTA) para adquirir su tecnolog铆a de compuestos de matriz met谩lica de aluminio (MMC) y su base de clientes. RTA, el 煤nico proveedor importante a nivel mundial de esta tecnolog铆a MMC propietaria, est谩 saliendo del negocio debido a una reorganizaci贸n estrat茅gica. La adquisici贸n podr铆a generar para Cymat ingresos anuales incrementales de 7.5 a 10 millones de d贸lares.
La empresa planea establecer la producci贸n de MMC en su planta de Mississauga, aprovechando la fuerza laboral e instalaciones existentes. Los costos de capital se estiman entre 2 y 2.5 millones de d贸lares, con gastos de transferencia tecnol贸gica en un rango de seis cifras bajas a medias. La iniciativa se financiar谩 con los ingresos de warrants y financiamiento de equipos. La adquisici贸n ofrece beneficios duales: a帽adir ingresos sustanciales no correlacionados y reducir significativamente los costos del principal material de entrada de Cymat.
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須岇偓电� 旮办〈 鞚鸽牓瓿� 鞁滌劋鞚� 頇滌毄頃橃棳 氙胳嫓靻岅卑 瓿奠灔鞐愳劀 MMC 靸濎偘鞚� 瓿勴殟頃橁碃 鞛堨姷雼堧嫟. 鞛愲掣 牍勳毄鞚� 200毵寏250毵� 雼煬搿� 於旍爼霅橂┌, 旮办垹 鞚挫爠 牍勳毄鞚� 雮潃 欷戧皠 6鞛愲Μ 靾� 氩旍渼鞛呺媹雼�. 鞚� 靷梾鞚� 鞗岆煱韸� 靾橃澋瓿� 鞛ル箘 旮堨湹鞚� 韱淀暣 鞛愱笀鞚� 臁半嫭頃� 鞓堨爼鞛呺媹雼�. 鞚措矆 鞚胳垬电� 靸侂嫻頃� 牍勳儊甏� 靾橃澋鞚� 於旉皜頃橁碃 Cymat鞚� 欤检殧 鞗愳瀽鞛� 牍勳毄鞚� 韥矊 鞝堦皭頃樀鐢 霊� 臧�歆� 鞚挫爯鞚� 鞝滉车頃╇媹雼�.
Cymat Technologies (OTCQB : CYMHF) a sign茅 une lettre d'intention avec Rio Tinto Alcan (RTA) pour acqu茅rir leur technologie de composites 脿 matrice m茅tallique en aluminium (MMC) ainsi que leur base de clients. RTA, le seul fournisseur majeur mondial de cette MMC propri茅taire, se retire de cette activit茅 suite 脿 une r茅organisation strat茅gique. Cette acquisition pourrait g茅n茅rer pour Cymat un chiffre d'affaires annuel additionnel de 7,5 脿 10 millions de dollars.
L'entreprise pr茅voit d'茅tablir la production de MMC dans son usine de Mississauga, en s'appuyant sur la main-d'艙uvre et les installations existantes. Les co没ts d'investissement sont estim茅s entre 2 et 2,5 millions de dollars, avec des frais de transfert technologique dans une fourchette basse 脿 moyenne de six chiffres. Le projet sera financ茅 par les produits des bons de souscription et un financement d'茅quipement. Cette acquisition offre un double avantage : ajouter un revenu substantiel non corr茅l茅 et r茅duire significativement les co没ts du principal mat茅riau d'entr茅e de Cymat.
Cymat Technologies (OTCQB: CYMHF) hat eine Absichtserkl盲rung mit Rio Tinto Alcan (RTA) unterzeichnet, um deren Aluminium-Matrix-Verbundwerkstoff (MMC)-Technologie und Kundenstamm zu 眉bernehmen. RTA, der weltweit einzige bedeutende Anbieter dieser propriet盲ren MMC, zieht sich aufgrund einer strategischen Neuausrichtung aus dem Gesch盲ft zur眉ck. Die 脺bernahme k枚nnte f眉r Cymat zus盲tzliche j盲hrliche Einnahmen von 7,5 bis 10 Millionen US-Dollar generieren.
Das Unternehmen plant, die MMC-Produktion in seinem Werk in Mississauga aufzubauen und dabei die bestehende Belegschaft und Einrichtungen zu nutzen. Die Investitionskosten werden auf 2 bis 2,5 Millionen US-Dollar gesch盲tzt, die Technologietransferkosten liegen im niedrigen bis mittleren sechsstelligen Bereich. Das Vorhaben wird durch Erl枚se aus Warrants und Ger盲tefinanzierung finanziert. Die 脺bernahme bietet doppelte Vorteile: erhebliche unkorrelierte Ums盲tze hinzuzuf眉gen und die Kosten f眉r Cymats wichtigsten Rohstoff deutlich zu senken.
- Potential additional annual revenue of $7.5M-$10M with margins comparable to or better than AlusionTM product
- Acquisition reduces cost of primary input materials significantly, improving price competitiveness
- Ability to leverage existing facilities and workforce minimizes operational costs
- Acquisition of established customer base from sole major global supplier
- Synergistic integration with existing operations and skill sets
- Required capital investment of $2M-$2.5M plus additional technology transfer expenses
- Integration and transition risks in assuming RTA's customer base
- Execution risk in establishing new production capability
- Additional financing needed through warrant proceeds and equipment financing
MMC is a ceramic particle-infused aluminum used in the automotive and rail industries for light weight components requiring extreme wear-resistance. RTA, who has been manufacturing and selling its proprietary MMCs for over 40 years, has decided to exit the business due to a strategic reorganization. As the only major supplier of this proprietary MMC in the world, RTA is seeking a smooth and un-interrupted transition of this business for its long-standing customers. Cymat utilizes this product as its primary input material to produce stabilized aluminum foam ("SAF"). Its familiarity with the material makes Cymat well qualified and uniquely positioned to take on this business line.
Cymat intends to establish MMC production capability within its existing
From a financial perspective, historical sales volumes provided by RTA suggest that Cymat could realize incremental annual revenue in the range of
The assumption of this new business line provides two major benefits for Cymat. Firstly, it adds a substantial uncorrelated and predictable revenue stream to Cymat's existing business. With its ability to utilize existing resources among other synergies, Cymat expects this venture to be highly profitable. Secondly, it reduces the cost of Cymat's primary input material and majority cost element by a substantial factor. This positions Cymat to be extremely price-competitive and compelling for targeted customers in its key automotive vertical. It also opens up business opportunities in high-volume verticals where SAF has historically been price un-competitive.
Michael Liik, Cymat's CEO and Chairman, stated, "This is a highly unique opportunity for Cymat to leverage our existing facilities and unique skill sets to realize a major expansion of our business. This initiative combined with anticipated sales growth in the nuclear and military verticals in our聽 SAF business should accelerate our path to substantial profitability " He added, "Since inception, we have looked for ways to bring this capability inhouse and have now achieved this feat -together with a substantial book of business - making this absolutely transformational for Cymat."
About Cymat Technologies Ltd.
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 .
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 . 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.
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FAQ
What is the expected revenue impact of CYMHF's acquisition of Rio Tinto Alcan's MMC business?
How much will CYMHF's acquisition of RTA's MMC technology cost?
When will CYMHF's new MMC production line be operational?
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What are the main benefits of CYMHF's acquisition of RTA's MMC business?
