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 8^th, 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 22^nd, 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.