CALGARY, ALBERTA--(Marketwired - March 7, 2017) - CEMATRIX Corporation (TSX VENTURE:CVX) (the "Corporation" or "CEMATRIX") announces that its wholly owned subsidiary, CEMATRIX (Canada) Inc. (the "Company") has entered into two agreements with the Business Development Bank of Canada (the "BDC"). The first agreement is for CEMATRIX's participation in the Federally sponsored Growth Driver Program (the "GDP"). The second agreement is for a new $100,000 of working capital financing (the "BDC Loan") to fund the Company's participation in the GDP.
"The GDP is a three year BDC program, which makes high quality Harvard-level consulting services available to qualifying companies to excel in their growth strategies. CEMATRIX qualified by being a BDC client that is successful, has significant growth forecasted and has a flexible forward looking management team. The GDP will assist in the refinement, formulation and implementation of CEMATRIX's growth strategy and how to best access the necessary resources to implement the strategy. This program is important to CEMATRIX, in that it will enable the Company to obtain an independent vetting of its existing strategy, while putting the Company in a better position to be able to facilitate the growth in the cellular concrete market in North America. The GDP is a new Federal government strategy to assist Canadian companies to excel in the current market place and CEMATRIX is primed to take advantage of this opportunity," stated Jeff Kendrick, CEMATRIX President and CEO.
BDC is the only bank devoted exclusively to entrepreneurs. It promotes Canadian entrepreneurship with a focus on small and medium-sized businesses. With its 110+ business centres from coast to coast, BDC provides businesses in all industries with financing and advisory services. Its investment arm, BDC Capital, offers equity, venture capital and flexible growth and transition capital solutions.
Interest on the BDC Loan, which is payable monthly, is at a variable rate of 1% above the BDC floating base rate, currently set at 4.70%. The BDC Loan is repayable over four (4) years, with seasonal repayments to commence in August 2017.
The BDC Loan is secured through existing security over the Company's current owned equipment and property as well as existing guarantees and security provided by CEMATRIX and certain subsidiaries of the Company.
CEMATRIX is an Alberta corporation with its head offices in Calgary, Alberta. The Corporation, through its wholly owned subsidiary, is a rapidly growing, cash flow positive company that manufactures and supplies technologically advanced cellular concrete products developed from proprietary formulations. This unique cement based material with superior thermal protection, delivers a cost-effective, innovative solution to a broad range of problems facing the infrastructure, industrial (including oil and gas) and commercial markets.
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 March 1, 2017 under CEMATRIX's profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.