CYM Cymat Technologies Ltd

Symbol: TSXV: CYM

MISSISSAUGA, ON, July 5, 2022 /CNW/ - Cymat Technologies Ltd. (TSXV: CYM) (the "Company" or "Cymat") is pleased to announce that it has entered into a component development agreement with a global automotive manufacturer ("OEM").

Cymat, together with its design partner Tesseract Structural Innovations, Inc. ("Tesseract"), has been retained to re-design a structural element (14 parts) within an existing electric vehicle ("EV") battery enclosure. By integrating SmartMetal^TM - Cymat's proprietary aluminum foam – into the component, the new design is expected to optimize performance by reducing weight, improving crash resistance, minimizing manufacturing complexity and creating cost savings for the OEM. This opportunity is the culmination of almost a year's work of exploring potential solutions for the OEMs challenges with EV battery enclosure systems.

The first phase of the agreement stipulates the completion of conceptual design together with the verification of performance through computer simulation. Subsequently, Cymat will be required to produce physical prototypes for the OEM to validate these simulation results. Once physical crash testing by the OEM is successfully completed and other production/pricing related issues agreed to, Cymat expects to receive a serial production contract.

As this component is common to a number of vehicle platforms and would be treated as a running change, the potential volume of SmartMetal^TM together with the compressed timeline to production, management views this opportunity as being transformational for Cymat.

The OEM has also indicated an interest in having Cymat/Tesseract evaluate other elements of their battery enclosure for performance enhancement.

Cymat's CEO Michael Liik commented, "This has been a long time coming and I am excited that Cymat has finally broken into the automotive sector. Our material is ideally suited for the complex challenges faced by EV manufacturers. Consequently, we are now seeing interest from numerous auto parts companies and auto manufacturers around the world. This development contract vindicates our strategy of focusing on electric vehicle battery enclosure performance - an area still very much in its infancy."

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 Alusion^TM brand and its automotive and military SAF under the SmartMetal^TM brand. For further information, please visit our website at www.cymat.com. 

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 www.sedar.com. 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.

SOURCE Cymat Technologies Ltd.