CEMATRIX Corporation Increases Oversubscribed Private Placement to $5,500,000 Co-led by Gravitas Securities and Clarus Securities

CALGARY, Alberta, April 15, 2020 (GLOBE NEWSWIRE) — CEMATRIX Corporation (TSXV: CVX) (the “Company” or “CEMATRIX”) a North American leading manufacturer and supplier of technologically advanced cellular concrete, is pleased to announce that as a result of significant demand, the Company’s brokered $3,000,000 private placement of 3,000 unsecured convertible debentures (“Convertible Debentures”) at a price of $1,000 per Convertible Debenture, as announced on April 8th, 2020 (the “Offering”), is oversubscribed. Consequently, the Company has increased the Offering by 83% to issue up to 5,500 Convertible Debentures, and to raise gross proceeds of $5,500,000 in order to strengthen its balance sheet for strategic acquisition opportunities and general working capital purposes.Gravitas Securities and Clarus Securities remain co-lead agents and are at arm’s length to the Company.Jeff Kendrick, CEO & President of the Company stated: “We are very humbled to have received such high levels of investor support leading to the over-subscription of our private placement, especially in these very turbulent times, which is a testament to the resiliency of the infrastructure industry as a whole.”The terms of the Convertible Debentures under the Offering remain unchanged as previously announced. Upon the closing of this Offering, the Company agrees to (1) pay the agents a cash commission equal to 8.0% of the gross proceeds; (2) issue to the agents broker warrants equal to 8.0% of the principle of the Convertible Debentures sold pursuant to the Offering divided by the conversion price. Each broker warrant will entitle the holder to acquire one unit at an exercise price equal to the conversion price. In addition, upon successful closing of the Offering, the Company shall pay the co-lead agents a corporate finance fee equal to that number of Convertible Debentures which is equal to 4.0% of the aggregate number of Convertible Debentures issued pursuant to the Offering.The upsized Offering is expected to close on or before April 22nd, 2020, subject to the receipt of all necessary regulatory approvals, TSXV approval and execution of definitive agreements between the Company and the co-lead agents. All securities issued pursuant to the Offering, including any underlying securities, will be subject to a four-month-and-one-day hold period in accordance with applicable Canadian securities laws. The Offering is being conducted on a private placement basis under prospectus exemptions.This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.About CEMATRIX CorporationCEMATRIX is a rapidly growing, cash-flow-positive company that manufactures and supplies technologically advanced cellular concrete products developed from proprietary formulations across North America. This unique cement-based material with superior thermal protection delivers cost-effective, innovative solutions to a broad range of problems facing the infrastructure, industrial (including oil and gas) and commercial markets. Through recent acquisitions of Chicago-based MixOnSite and Bellingham-based Pacific International Grout, CEMATRIX is now North America’s largest cellular concrete company.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.For further information, please contact:Jeff Kendrick – President and Chief Executive Officer
Phone: (403) 219-0484
Glen Akselrod – President, Bristol Capital
Phone: (905) 326 1888 ext 1
glen@bristolir.com
Jeff Walker, The Howard Group – Investor Relations
Phone: (888) 221-0915 or (403) 221-0915
jeff@howardgroupinc.com
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 7, 2019 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.
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