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Small-Cap Firm Secures Substantial Military Prototype Order
By: AllPennyStocks.com News
December 2, 2009
Even in the dying days of a recession, as some of the economic gloom is lifting, there are many lucrative contracts out there to be had, particularly at the hands of military organizations throughout the world. One company that took advantage of one of these contracts is Toronto-based Cymat Technologies Ltd. (TSX:CYM), which as December began, announced it had delivered two prototype orders from a major U.S.-based original equipment manufacturer of light vehicles.
CYM is the maker of SmartMetal(TM) products, which will be integrated into a survivability solution for vehicle underbelly protection. SmartMetal has been designed to accommodate both existing vehicles through an aftermarket retrofit kit, and new OEM vehicle production. It could be a stepping stone to opportunities among other NATO nations, seeking vehicles of this type.
In business since 1990, it was in 2000 that CYM was reorganized to focus exclusively on commercializing Standard Aluminum Foam (SAF), having sold the world’s first commercial SAF casting line only two years before. The company added some clout to its board of directors this year, with the naming of retired Canadian Armed Forces General Lew Mackenzie, best known for his exploits at the helm of Canadian troops in the former Yugoslavia.
In November – appropriately enough, on the eve of Remembrance Day – CYM announced a joint initiative between an independent military vehicle integrator and a major U.S. armoured vehicle OEM. SmartMetal™ will be incorporated into a next-generation vehicle as part of a comprehensive survivability solution. Prototype parts for this initiative are being delivered through the fall of this year with validation testing anticipated to be completed by the end of December.
CYM, which develops innovative materials for industry, has worldwide rights, through patents and licenses, for producing SAF, an ultra-light metallic foam made by bubbling gas through molten alloyed aluminum containing a dispersion of fine ceramic particles and can be produced as either Near-net Shapes or Flat Panels. The result is a revolutionary material with a wide array of features including very low density, mechanical energy absorption, thermal and acoustic insulation, is recyclable, time and temperature insensitive and has a relatively low cost of production.
The news of the contract with the American agency – and the prospects for several others worldwide – sent CYM stock rubbing up against its 52-week high of 34.5 cents, which was achieved in late September, in contrast to its four-cent gully just before Christmas. The stock was just under the 30-cent mark as December dawned.
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