Argex Titanium Announces Extension of Toronto Stock Exchange Listing Review

MONTREAL, Québec (August 29, 2016)  – Argex Titanium Inc. (TSX: RGX) (the “Corporation” or “Argex”) is pleased to announce that the Toronto Stock Exchange has granted Argex a 30-day extension, to September 26, 2016, with respect to the TSX’s listing review of the Corporation. At that time, the Continued Listing Committee of the TSX will determine whether Argex now meets the TSX’s listing requirements.

“We thank the Continued Listing Committee of the TSX for its thorough and diligent analysis of the Corporation’s financial position”, said Mazen Alnaimi, new Executive Chairman and CEO of Argex. “We are focusing on completing the development of our TiO2 pigment technology in the coming months and delivering a consistent product to our marquee clients. Argex’s new corporate team has worked hard in the first 30 days since we closed the private placement of $2.4 million and restarted activities to negotiate settlements with our creditors and develop positive relationships with each of them for the future”, continued Mr. Alnaimi.

Since being appointed following completion of the private placement in July 2016, Argex’s new management team has negotiated settlements with a number of Argex’s creditors and is currently in settlement discussions with Argex’s other creditors.

About Argex Titanium

Argex Titanium Inc. has developed an advanced chemical process for the volume production of high grade titanium dioxide (TiO2) for use in high quality paint, plastics, cosmetics and other applications.  The Corporation’s unique proprietary process takes relatively inexpensive and plentiful source material from a variety of potential vendors, and produces TiO2 along with other valuable by-products. Argex’s process provides a significant cost and environmental advantage over current legacy TiO2 production methods.

CONTACT INFORMATION:

Nicole Blanchard
Corporate Communications and Investor Relations
Argex Titanium
(514) 843-5959
nblanchard@argex.ca

This news release contains statements that may constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking information and statements may include, among others, statements regarding future plans, costs, objectives or performance of Argex, or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” “target” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Argex will derive. Forward-looking statements and information are based on information available at the time and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Argex’s control. These risks, uncertainties and assumptions include, but are not limited to, those described under “Risk Factors” in Argex’s Annual Information Form for the fiscal year ended December 31, 2015, which is available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from those projected in any forward-looking statements. Argex does not intend, nor does Argex undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.

Argex Titanium appoints Shaun Parmar as Chief Financial Officer

MONTREAL, Quebec  – Argex Titanium Inc. (TSX: RGX) (the “Corporation” or “Argex”) is pleased to announce the appointment of Shaun Parmar as Chief Financial Officer (“CFO”).

Mr. Parmar is a seasoned executive with extensive international experience in strategy, business and corporate development, M&A, corporate finance advisory and related finance/accounting functions.

A management consultant since 2010, Mr. Parmar has held the CFO role at private and public companies in the high-tech, clean-tech and media sectors. Prior to this, he was the Group Director, Mergers and Acquisitions and Business Development of Bharti Enterprises Limited, one of India’s largest business conglomerate. Before this, Mr. Parmar held a number of increasingly senior management positions with leading Canadian companies such as Canada Steamship Lines Inc., Canadian Pacific Railway, BCE Inc., Bell Canada International Inc., Telesystem International Wireless Inc. and Gildan Inc., where he was Vice-President, Business Development and Corporate Treasurer.

Mr. Parmar holds a Bachelor of Science degree from the University of Toronto, a Master of Business Administration degree from York University and is a Chartered Professional Accountant.

He joins Argex Titanium at a very exciting time and in a turnaround situation to fulfill the role of CFO.

About Argex Titanium

Argex Titanium Inc. has developed an advanced chemical process for the volume production of high grade titanium dioxide (TiO2) for use in high quality paint, plastics, cosmetics and other applications.  The Corporation’s unique proprietary process takes relatively inexpensive and plentiful source material from a variety of potential vendors, and produces TiO2 along with other valuable by-products. Argex’s process provides a significant cost and environmental advantage over current legacy TiO2 production methods.

CONTACT INFORMATION:

Nicole Blanchard
Corporate Communications and Investor Relations
Argex Titanium
(514) 843-5959
nblanchard@argex.ca

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

LGC Capital – Accelerated Drilling Plans For Onshore Oil Block 9 in Cuba, Farmout Plans For Beehive Oil Project And Plans For New Zealand Project

Not for distribution directly or indirectly in the United States

MONTREAL, Aug. 15, 2016 – LGC Capital Ltd. (TSXV: QBA) (“LGC”) is pleased to announce that one of its portfolio companies, Australian listed MEO Australia Limited (“MEO Australia“) (ASX: MEO), issued a press release today providing an operational update and near term drilling plans and further resource update plans for its Cuban Block 9 onshore oil acreage, and a farmout update for its Beehive Project in Australia and for its New Zealand oil and gas acreage.

LGC’s interest in MEO Australia has increased to approximately C$6.8 million, a nearly 5 fold increase from LGC’s original entry price.  LGC holds 140.7 million shares (15.8%) of MEO Australia and is its largest shareholder.

David Lenigas, LGC Capital Ltd’s Co-Chairman & CEO, commented; “Our investment in MEO is proving very successful to date with this investment providing a balance sheet boost to LGC of $6.8 million, and we see continued strong interest on this investment going forward as they progress a number of exciting opportunities in their significant oil portfolio in Cuba, Australia and New Zealand. Cuba Block 9 is particularly significant, as they work to accelerate the potential for drilling on Block 9. Given the potential already identified in the first of the three play types on Block 9, we are looking forward to seeing the results of the assessment of the remaining two plays on the Block and their drilling updates.”

MEO Australia’s press release is available on its website at www.meoaustralia.com.au, under “Investor Relations/ASX Releases”.

The full MEO Australia Media Release is as follows:

ASX & Media Release
Operations Update
Key Points:

  • Assessment of resource potential of Upper Sheet and Shallow Tertiary plays on the Cuba Block 9 PSC progressing with initial results expected in Q4 2016
  • Opportunities for accelerated drilling on Block 9 currently being explored with a plan for an initial drilling program expected to be completed in Q1 2017
  • A potential high impact well on Cuba Block 10 operated by Sherritt International, next to Block 9, drilling this year
  • Assessment of New Zealand acreage prospectivity underway with forward drilling program to be determined in Q4 2016
  • Farmout process underway to fund drilling of the potentially giant Beehive Prospect in the Bonaparte Basin

MELBOURNE, AUSTRALIA (15th August, 2016)

MEO Australia Limited (ASX: MEO) is pleased to provide the following update regarding the progress and near term plans of the Company’s key projects.
Cuba – Block 9 Production Sharing Contract

  • Following on from the assessment of the resource potential of the Lower Sheet play, the Company’s assessment of the resource potential of the remaining two plays, the Upper Sheet and Shallow Tertiary plays, is progressing as planned. MEO expects to complete the preliminary stage of this assessment in the fourth quarter of 2016. These resources are in addition to the previously announced resource potential of the Lower Sheet play.
  • MEO has also commenced the work required to accelerate the potential for early drilling in Block 9 based on the significant resource potential identified in the Lower Sheet play. MEO has identified the A2 Lead and follow up to the Marti-5 oil recovery as targets which could potentially be drilled on existing data. MEO is aiming to finalise a drilling plan by the first quarter of 2017 for up to two wells in Block 9.
  • Sherritt International Corporation plans this year to drill a high impact well on neighbouring Block 10 PSC which, if successful, will provide further validation of the significant prospectivity of MEO’s Block 9 PSC in Cuba.
  • To support these activities, MEO has opened a representative office in Havana and appointed former Cupet Exploration Director Dr Rafael Tenreyro as its representative in Cuba.

New Zealand – PEP51153

  • The Joint Venture is progressing its assessment of the prospectivity of PEP51153 and in the fourth quarter will consider whether to proceed with drilling the high impact exploration well.

Offshore Australia – WA-488-P

  • The farmout process for the Beehive prospect has commenced, with preliminary discussions underway with a number of parties.
  • Reprocessing and inversion studies undertaken by MEO support that Beehive is one of the largest undrilled hydrocarbon prospects in Australia.
  • MEO is seeking to complete the farmout process in the fourth quarter of 2016.

MEO Managing Director & CEO Peter Stickland commented:
“While MEO has a number of exciting opportunities in its portfolio, Cuba Block 9 is particularly significant for the Company and we are busy working on a number of fronts to accelerate the potential for drilling on Block 9. Given the … potential we identified in the first of the three play types on Block 9, we are looking forward to seeing the results of the assessment of the remaining two plays. We are also excited to be working towards progressing early drilling opportunities which we identified during the assessment of the Lower Sheet play with the A2 Lead and follow up to the Marti-5 oil recovery being particularly exciting. We look forward to keeping the market informed as we progress these activities in the coming months.”

Peter Stickland
Managing Director & Chief Executive Officer

About LGC Capital

LGC Capital is one of the few public listed companies globally whose primary purpose is investing directly in the fast-growth Cuban economy. The company has significant shareholdings and joint ventures in well-established international businesses operating in the Cuban Oil and Gas exploration, Travel, Events, TV and Film Production support, Human Resources, Agricultural and Import and Export sectors.

Neither the TSX Venture Exchange nor its Regulation Service 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:

Canada Contact:
Rafi Hazan, Secretary and Director
Tel.: (514) 839-7234

London Office Contact:
David Lenigas, Co-Chairman and Chief Executive Officer
Mazen Hadad, Co-Chairman
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations Contact:
Dave Burwell
The Howard Group Inc.
Tel.: (403) 221-9015
Toll Free: 1-888-221-0915
Email: dave@howardgroupinc.com

LGC Capital – A Cuban Revolution Is Underway

by Dave Burwell and Grant Howard

QBA:TSXV

opportunity

The reasoning behind why we chose the side quote will become very clear as you read The Howard Group’s introductory commentary to its newest client, LGC Capital Limited.

We encourage readers to put LGC Capital Limited on your watch list.

In March of this year, Barack Obama became the first sitting U.S. president to visit Cuba since the 1959 revolution, which is when tensions began escalating between the two countries. The BBC stated in an article, “For a U.S. president to touch down at Jose Marti airport in Havana and be warmly greeted by Cuba’s foreign minister was until recently unthinkable.”

The U.S. embargo for more than five decades prevented citizens of the United States from travelling to Cuba and U.S. companies from doing business in the country.

This past March, Mr. Obama stated, “Change is going to happen in Cuba”, which was soon followed by the lifting of a number of the impediments to doing business with Cuba and travelling to that country.

LGC Capital – Way Ahead Of The Cuban Curve

LGC is a truly diversified Cuban focused organization, which is at the front end of a rapid and significant revenue ramp according to management in recent discussions with members of The Howard Group. We are looking forward to the day that forecasts are formalized, especially in relation to 2017. We do like the ticker symbol; QBA.

LGC Logo BlueWhen we use the word “diversified”, it’s not a stretch as LGC has a variety of interests in oil and gas, tourism, agriculture, trading, renewable energy and corporate consulting. The Company uses the Cuban hummingbird as it’s logo. It’s only the size of your thumbnail but moves quickly and is industrious. Such is the nature of LGC.

While LGC Capital was only incorporated in March 2015, there was a singular catalyst behind establishing a corporate entity. Founder and well known international entrepreneur David Lenigas had identified a number of Cuban business opportunities in conjunction with his personal relationships that have been “on the ground” there for many years.

As Mr. Lenigas has developed a hefty following based on past successes in the public market, he listed LGC Capital (then known as Leni Gas Cuba) on the ISDX Exchange in the United Kingdom in mid-2015. In July of this year, LGC began trading on the TSX Venture Exchange (QBA) following an RTO of Knowlton Capital. It was founded by Mazen Haddad, a name familiar to many who followed the Argex Titanium story through HG commentaries. Mr. Haddad played a key role in the recent turnaround and restructuring of that troubled company, once a darling and “dream” amongst a broad investing base.

Both gentlemen are residents of Monaco, and as they have mutually invested in different ventures over the years, there was a well-established relationship. They are Co-Chairmen of LGC.

Management say they moved the listing to Canada because Canada gets Cuba. A third of the visitors to the Island nation hail from Canada and Canada is one of Cuba’s largest trading partners.

David Lenigas – The Main Driver and Co-Chairman and CEO

David Lenigas has extensive experience operating in global public markets having served in a senior executive capacity on many public company boards. He served as the Executive Chairman of London and US listed Rare Earth Minerals Plc until December 2015, and was responsible for the company’s significant involvement in the discovery of the Sonora Lithium Project in Northern Mexico with its joint venture partner Bacanora Minerals Limited and their entry in to Europe’s largest lithium deposit at Cinovec in the Czech Republic. He is no stranger to the Canadian markets, having recently served on the Board of Baconora Minerals (TSXV: BCN; BCN:LN) and he is also a director of Macarthur Minerals Limited (TSXV: MMS) in which REM is their largest shareholder.

Mr. Lenigas is also well versed in emerging markets, having served as Executive Chairman of London main board listed Lonrho Plc for six years until September 2012 and was responsible for its rebuilding and expansion back into more than 17 countries in Africa in sectors covering agriculture, infrastructure, hotels, IT and aviation. He is still actively involved in Africa, serving as Executive Chairman of global logistics group AfriAg Global Plc (AFRI:PZ), moving perishable food all around the globe.

His experience with oil is significant, having been responsible for the large oil discovery at Horse Hill near London’s Gatwick Airport over the past years, serving as Executive Chairman of London listed UK Oil & Gas Investments Plc (UKOG:LN) and still heads up a Horse Hill partners as Executive Chairman of Doriemus Plc (DOR:LN).

Mr. Lenigas holds a Bachelor of Applied Science (Mining Engineering) with Distinction from Curtin University’s Western Australian Kalgoorlie School of Mines and also holds an unrestricted first class mine manager’s certificate from the Western Australian Government.

Mazen Haddad – The Canadian Corporate Man and Co-Chairman

Mazen Haddad is a private investor and previously held the positions of Chairman, President and Chief Executive Officer of the Company. Mr. Haddad holds a B.A. degree in economics from Emory University of Atlanta, Georgia.

Mr. Haddad is Interim President and Chief Executive Officer and a director of Argex Titanium Inc., a company listed on the Toronto Stock Exchange. Mr. Haddad was President of Township Capital Inc., a private company whose primary role was to act as a consultant for Palos Capital Pool, L.P., from 2006 until 2010. Prior to that, he served as Chairman of SGI Properties Canada Fund L.P., a private real estate investment trust (REIT) focused on residential real estate in Montreal, Québec, and as Vice-President of SGI Capital Corp., a private investment company.

Corporate Structure:

Shares Outstanding: 234,045,321

Warrants: 1,976,000

Exercise price – $0.2321, Expiry – November 2, 2022

Options: 39,982,678

1,982,678 – Exercise price: $0.064, Expiry: November 1, 2018
4,000,000 – Exercise price: $0.09284, Expiry: November 2, 2018
4,000,000 – Exercise price: $0.2321, Expiry: November 2, 2018
4,000,000 – Exercise price: $0.4642, Expiry: November 2, 2018
4,000,000 – Exercise price: $0.6963, Expiry: November 2, 2018
4,000,000 – Exercise price: $0.9284, Expiry: November 2, 2018
18,000,000 – Exercise price: $0.2325, Expiry: December 31, 2020

Fully Diluted:  276,003,999

Debt:  Nil

Insider Ownership: 50%

David Lenigas – 57.2 million shares
Mazen Haddad – 9.5 million shares

LGC Partnerships and Investments

The key takeaway is that LGC wasn’t established to look for opportunities in Cuba; it was established to take advantage of the roots that were already firmly planted in the Caribbean nation. The forward thinking is evident based on the below graphic that displays the nature and ownership of LGC’s diversified interests in Cuba.

Management says that the best way to grow a business focused on Cuban growth metrics is to be a broad based diversified conglomerate. Some of the most successful companies in the world adopt this conglomerate approach to spread the investment risk.

QBA3


MEO Australia and Petro Australis
Multi-Billion Barrels Of Oil Opportunity

meo-logopetro australis

In February 2016, LGC made a strategic investment in Cuban oil explorer MEO Australia Limited (“MEO”), a company incorporated under the laws of Australia and listed on the Australian Securities Exchange (ASX). LGC is the single largest shareholder of MEO, with a 15.8% interest.

MEO is pre-qualified as a foreign onshore and shallow water operator in Cuba, and in September 2015 was awarded a 100% interest in the 2,380 km2 onshore oil block, Block 9 Production Sharing Contract (“Block 9 PSC”), located on the north coast of Cuba, 140 km east of Havana and along trend with the multi-billion barrel Varadero oil field. Click here for more information on Block 9.

There are only two foreign listed companies actually approved to work in Cuba in the oil sector: Sherritt (TSE.S) and LGC. This is the unique opportunity here, as entry barriers to get in to Cuba are onerous.  So MEO have a great first mover advantage.

Cuba needs a lot more oil to run its growing economy. 96% of Cuba’s energy comes from oil and they are struggling to meet refinery demand due to recent problems with Venezuela and their supplies of 50% of crude to keep Cuba running smoothly.

LGC also holds a 15.14% interest in Petro Australis (private), which holds a conditional 40% back-in option to Block 9 PSC, the investment by LGC in MEO significantly increased LGC’s underlying interest in Block 9 PSC.

In regards to potential, MEO Australia reported in July that, “The first of three identified oil plays on Block 9 has been assessed by MEO to contain 8.183 billion barrels of Oil-in-Place with a Prospective (Recoverable) Resource of 395 million barrels (Best Estimate, 100% basis) of potentially high quality light oil.  Further work on the other shallower oil plays, which also have significant oil potential, is continuing, and will be reported on as available.” Click here to see the news release.

And not only does MEO have a “high potential” great oil play in Cuba, it’s  also hunting two “elephant size”  oil and gas plays in Australia. Beehive is a multi-billion barrel play off the Western Australian coast and the big Tassie Shoals LNG and Methanol Projects have just had their environmental approvals extended to 2052.

Today the market cap of MEO Australia is approximately $43 million. As of this writing LGC’s ownership is worth over $6.8 million CDN which is a five-fold increase from LGC’s entry level. There’s no doubt that big international play’s can create fortunes but patience is required.



The InCloud9 Group
Facilitating Travel To Cuba For Wealthy U.S. Travellers

IC9new-logo-B-full

In September 2015, LGC acquired 40% of the issued share capital of Travelwelcome Ltd., which in turn acquired 100% of inCloud9, another Cuban travel operator. The whole group now runs as inCloud9. Through its representative office in Havana, inCloud9 provides the services of a specialist Cuban ground handler which works with other specialist travel companies around the world to assist with tailor-made trips to Cuba for their clients. This includes booking local hotels, transport, local tours and guides, as well as other specialist activities such as art tours, horse riding, deep-sea fishing, fly fishing and scuba diving. In addition, inCloud9 has the capacity to assist with the organization of special events including conferences and weddings, and group activities around Cuban festivals such as the Cigar Festival and Film Festival.

tourists-on-beach-in-cubaCuba is experiencing a tourism boom that isn’t going away. Whether it’s the allure of sampling one of Cuba’s fabled freshly rolled cigars or sipping minty mojitos in one of Old Havana’s speakeasy-style bars, approximately 3.1 million people infiltrated the Caribbean country’s post-communist borders in 2015, a 17.6% increase compared to the same time last year.

Cuba’s Office of National Statistics: Canada – or those travelling through, maintains the lion’s-share of Cuba’s tourism with over a million visitors in 2015. But the Americans are starting to come. And when America comes, it doesn’t just drizzle, it pours.

Eight U.S. carriers, most with flights departing from the Miami and New York metropolitan areas received tentative approval from the Transportation Department in July 2016 to operate direct flights to José Martí International Airport in Havana. They should start flying at the end of the Summer.

The opportunity – Because of the embargo, United States citizens have been prevented from vacationing in Cuba. They still can’t. But they can come on one-on-one “cultural” exchange visits. According to LGC management, this is changing fast and American business scouting and cultural tourism is quickly rising.  inCloud9 is one of the few foreign operators with a physical full-time presence in Havana. It operates throughout Cuba, facilitates travel into and around Cuba and manages many events and movie/documentary shoots.

Although U.S. tourism to Cuba was low during the embargo, the U.S. boom has started. Management tells us that since LGC acquired its ownership interest, the business is already experiencing impressive growth with a multi-million-dollar turnover in this business. Recently, LGC management talked about a number of major events it will host  in Cuba including  facilitating movie and documentary productions,  and handling all arrangements for world renowned recording artists who will  come to Cuba for performances or just a vacation.

It’s an understatement that management is enthusiastic as it tells us that a number of these larger projects generate hundreds of thousands of dollars in profit for inCloud9. On some occasions, inCloud9 has hosted hundreds of tourists in the Country at any one time. LGC is gearing up in Havana for growth and potential further acquisitions.

As we don’t have management forecasts in hand as of yet, quantification of future expectations is a key point that potential investors will be awaiting.


Rushmans Ltd. Joint Venture
Bringing The World Of Sports To Cuba

Logosquare100

In April 2016, LGC entered into a 50/50 joint venture with Rushmans Ltd (the “Rushmans Cuba JV”) to explore the opportunities available for international entities to participate in the development funding for Cuban sport.

The Rushmans Cuba JV possesses an exclusive license to use the Rushmans’ brand and intellectual property in respect to Cuban sporting opportunities, including assisting Cuban sport associations to build upon its massive potential from social/grassroots to international competition level.

Rushmans – http://rushmans.com – has more than 25 years of experience in world sport and has advised and supported sports governing bodies and played a key role in planning and delivering a host of major events including European Championships in Football and World Cups in Cricket and Rugby. Rushmans has also acted as a strategic advisor to sport and corporations worldwide.

Nigel Rushman’s experience spans over 30 years with interests in various international trades and projects, including steel, infrastructure, equipment, manufacturing, hotels, catering, marketing, property, digital and sport. In addition, he has developed and implemented innovative programmes for over 500 events in 30 countries, including three Rugby World Cups and three Cricket World Cups amongst numerous other projects.

public-domain-images-archive-high-quality-resolution-free-download-splitshire-0008-1000x666-1818x628In his role as Founder of Rushmans, Nigel was contracted as Event Director of the ICC CWC West Indies 2007 Inc. with the responsibility of implementing the Event Management, Security, Media Management, Accreditation and Volunteer Programmes for the Cricket World Cup across the nine participating countries in the Caribbean region.

Most recently Nigel had the pleasure and privilege to be part of the innovative and highly professional team, which made history by winning Qatar the opportunity to host the FIFA World Cup in 2022.

The opportunity – Cuba is coming in quickly coming in from the cold  and sport is an untapped market that could add significant hard currency revenue. It was Nigel Rushman who assisted Qatar win the FIFA World Cup in 2022. Rushmans Cuba is well connected to the global world of sport and the opportunities for sport in Cuba are immense. If Rushmans Cuba can assist the Cuban bring world class events to Cuba, the JV could receive a percentage of the ticket sales, television broadcasting fees, merchandise, etc. A single event could generate hundreds of thousands of dollars for LGC and significantly more for the Cuban Government. The opportunities are considerable.  


Groombridge Trading Corp. Joint Venture
Opening Up Trade With The World

GTCorp-Logo

In November 2015, LGC entered into an agreement with Cuban-centric trading company Groombridge Trading Corp. (“GTC”) to form a 50/50 joint venture (the “GTC JV”) designed to expand GTC’s existing business of supplying products, machinery and equipment to the fast-growing Cuban tourism sector and exporting agricultural products from Cuba.

GTC, established in 2013, is a Canadian corporation that is approved to trade in Cuba by the Cuban Ministry of Foreign Trade and Investment and the Ministry of Agriculture, and is further authorized to trade with other Cuban Government entities.

working_in_cubaLGC assists GTC with its existing order book of imports for the hotel and tourism sector and will become a financial partner in new business moving forward. The GTC JV has an exclusive first right of refusal to participate on a deal-by-deal 50/50 basis in any current and new transactions originated and operated by GTC. In addition to growing GTC’s current trading activities, the GTC JV also works with GTC to develop a number of agricultural projects and initiatives currently under negotiation in Cuba and assist with new export orders of agricultural products to Europe and Canada.

In March, the joint venture announced its first import contract, which was worth approximately $30,000. Click here to read about the opportunity. Cuba imports 70% of what it consumes, which means it needs to import over $2 billion dollars’ worth of goods to feed the rising economy. Chris Murphy who runs GTC, has been in Cuba since the early 1990’s and was the boss of ED&F Man’s sugar business in the country. Management feels the import/export opportunities are such considerable size that GTC will be a top gem in its Cuba portfolio.  


Cuba Mountain Coffee
With Nestle Bringing Cuban Coffee To The U.S.

logo

In June 2016, LGC acquired a 10% interest in The Cuba Mountain Coffee Company Ltd (“CMC”), an English company founded in 2013. CMC will promote on a worldwide basis, single-origin gourmet coffee from Cuba’s famous Guantanamo Region, both as green beans and also via CMC’s own bespoke coffee brand, “Alma de Cuba”.

In July 2015 LGC announced the following:

“The Cuba Mountain Coffee Co (CMC) has achieved a milestone in its negotiations with the Cuban authorities and is now hopeful that its coffee project in the Cuban province of Guantanamo will begin in 2017.”

“A visit to Guantanamo by CMC directors in June resulted in agreement on the principal terms for co-operation with the Asdrubal Lopez coffee processing plant in Guantanamo, CMC’s counter-party in Cuba. Crucial approvals have already been achieved and the project is now in its final negotiating stage before ministerial presentation, expected before January 2017.”

nestle_ao_altoIn June of this year, Nespresso USA announced it (and CMC) will bring back Cuban Coffee to the United States for the first time in more than 50 years. See news release here.

In April 2016, CMC also signed a Memorandum of Understanding with Nestlé Nespresso with the ambition to explore how to work together with the nonprofit organization, TechnoServe, to boost production and quality in some of the Guantanamo micro-regions for the benefit of Cuban farmers and the protection of their environment, subject to the approval of the Cuban authorities and compliance with applicable laws.

CMC has already established an E-commerce website, www.almacuba.comfor its Gourmet coffee brand, “Alma de Cuba” and retails its coffee through major retail outlets.



Commercial Funded Solar Joint Venture
Solar and Renewable Infrastructure for Cuba

cfsolarworld1

In 2014, Cuba set a target of producing 24% of its electricity from renewable sources by 2030. Solar will be a large part of this initiative due to the abundance of sunshine in the country.

In May 2016, LGC entered into an agreement with UK Solar power and storage specialists, Commercial Funded Solar Ltd (“CFS”), designed to assess the potential for installing and operating renewable energy and hybrid power solutions (solar power, energy storage and integrated power management systems) in Cuba.

solar cubaCFS is a UK based multinational company with operations in the UK, Africa and South America, specialising in the installation of medium sized commercially funded renewable power and storage systems of between 30kw and 1MW each. CFS is currently focused on delivering a large number of investor funded commercial systems to Academy and School Groups in the UK public and private education sector, as well as providing a commercially funded model for investors wanting a higher return short-term (1-3 year) investment in countries with supportive governments with immediate requirements to replace diesel generation, such as in Cuba.

CFS and LGC intend to lead the development and construction of each project with the funding coming from external investors. Under the terms of the agreement, CFS and LGC will share on a 50/50 basis the development, funding and construction revenues for each renewable power plant built, and will share on a 75/25 basis the 10-20 year operational contracts for all the systems.

Proactive Investors covered the announcement – click here to view.


Conclusion

CubaLGC Capital is a unique public opportunity. There is only one other company listed on a Canadian exchange with a Cuban focus. It’s imperative is promoting and selling tourism to Cuba. LGC is a company for those who believe that Cuba is going to blossom and can envision the potential for being a shareholder in a well established entity.

By investing and partnering with entrenched businesses within the country, LGC Capital is in a perfect position to take advantage of the economic surge that’s coming to Cuba. LGC provides investors with a rare opportunity to capitalize on a currently underdeveloped country gaining new found exposure to the U.S. marketplace.

Future valuation will obviously be driven by fundamental results. However, based on the history of the people behind LGC and their respective investing networks, we wouldn’t be surprised to see the expectation of “future potential” attracting people to the story.

Without question, LGC was on the dance floor before the band struck the first note!

For more information on LGC Capital, please contact:

Dave Burwell
The Howard Group Inc.
Email: dave@howardgroupinc.com
Tel: 403-221-0915

To receive ongoing commentary on the activities of LGC Capital, click here to register.

Not For Distribution Directly or Indirectly in the United States.

FLYHT Signs its First Chinese Customer for Data Services

Calgary, Alberta – August 15, 2016 – FLYHT Aerospace Solutions Ltd. (TSX-V: FLY) (OTCQX: FLYLF) (the “Company” or “FLYHT”) is pleased to announce the launch of real-time data services in the People’s Republic of China. The undisclosed airline is the first Chinese customer to select data services provided by the Automated Flight Information Reporting System (“AFIRS™”) on its fleet of CRJ-900 aircraft. This Chinese operator receives their new aircraft with AFIRS already installed from Bombardier as a line-fit option.

The aggregate data services revenue on this contract is initially valued at $1,050,000 USD assuming FLYHT provides services over the full term of the five (5) year agreement. The announced contract value is based upon the current in-service quantity of AFIRS-enabled Bombardier CRJ aircraft and an initial set of enabled data services provided by FLYHT’s cloud-based UpTime™ products. The airline may add more aircraft to its operations in the future and may request that FLYHT provide these services to the additional aircraft as they join the airline’s fleet, further increasing the value of the service contract. Additional UpTime products are available for the operator to add to the contract, which could also further increase the contract’s value.

“FLYHT is pleased to provide data services for customers in China to enable cost savings and improved operational efficiencies,” remarked Michael Fang, FLYHT’s Vice President of China Sales. “By receiving real-time data, airlines can track their aircraft and AFIRS will alert the airline to any issues which allows them to be proactive with their maintenance and operations. We believe that signing this airline may open FLYHT up to new possibilities in China as other airlines see the value that real-time data can provide.”

AFIRS is now contracted on over 100 aircraft in China with more units on order. FLYHT is positioned to capture additional value from its investments in the country with the delivery of data services and the recurring revenue that comes with it. This launch customer allows FLYHT to demonstrate the value and effectiveness of UpTime services to other China clients who have installed AFIRS for FLYHTVoice™ but have not yet enabled the cost saving data services possible with AFIRS.

About FLYHT Aerospace Solutions Ltd.

FLYHT is a leading provider of real-time aircraft intelligence and cockpit communications for the aerospace industry. More than 50 customers, including airlines, leasing companies, and original equipment manufacturers, have installed our systems in order to increase safety, improve operational efficiencies and enhance profitability. FLYHT’s proprietary technology, the Automated Flight Information Reporting System (AFIRS™), operates on multiple aircraft types and provides functions such as safety services voice and text messaging, data collection and transmission, and on-demand streaming of flight data recorder (black box), engine and airframe data. AFIRS sends this information through the Iridium Satellite Network to FLYHT’s UpTime™ ground-based server, which routes the data to customer-specified end points and provides an interface for real-time aircraft interaction. AFIRS has flown over 2 million aggregate flight hours and 1.5 million flights on customers’ aircraft. FLYHT holds supplemental type certificates (STC) which allow for the installation of AFIRS on 95% of transport category aircraft.

Contact Information

FLYHT Aerospace Solutions Ltd.
Nola Heale, CPA (CA)
Chief Financial Officer
403-291-7425
nheale@flyht.com 

Investor Relations
The Howard Group Inc.
Dave Burwell
Vice President
(888) or (403)-221-0915
dave@howardgroupinc.com

Neither the 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.

Argex Titanium Restarts Its Laboratory In Valleyfield

A Specialized Team Has Been Recruited With External Support From Experts

MONTREAL, Québec (August 10, 2016) – Argex Titanium Inc. (TSX:RGX) (the “Corporation” or “Argex”) is pleased to announce that activities have resumed at its R&D centre in Valleyfield.

Due to the suspension of activities in 2015, renovation work was required and the equipment had to be reconditioned in recent weeks before activities could resume. In the interim, a specialized technical team was recruited. The team will be supported by external experts.

“Given the current state of advancement of Argex’s technology, our goal in the coming months will be to integrate each unit of the process, from ore selection at the entrance to reduction of water consumption, integration of heat sources and improvement of reagent consumption level, in order to optimize and confirm the parameters of the titanium dioxide products (TiO2),” said Carroll Moore, Chief Operating Officer of Argex. “We will benefit from a new team of internal and external engineers, chemists and technicians who will collect ongoing data with a view to commercial production of industrial-grade titanium pigment. We have also introduced internal and external data analysis services that will save us time and money.”

“We plan to refine the Argex technology in order to set a new standard for the titanium industry,” added Mazen Alnaimi, Executive Chairman and Chief Executive Officer of Argex. “Given our experience in marketing and operation of commercial chemical plants, we are aiming for a future 1:2,000-scale demonstration plant design, followed by the construction of a 25,000-tonne commercial unit. This 50% reduction from the earlier design will tangibly reduce the risks associated with scaling.”

About Argex Titanium

Argex Titanium Inc. has developed an advanced chemical process for the volume production of high grade titanium dioxide (TiO2) for use in high quality paint, plastics, cosmetics and other applications.  The Corporation’s unique proprietary process takes relatively inexpensive and plentiful source material from a variety of potential vendors, and produces TiO2 along with other valuable by-products. Argex’s process provides a significant cost and environmental advantage over current legacy TiO2 production methods.

CONTACT INFORMATION:

Nicole Blanchard
Corporate Communications and Investor Relations
Argex Titanium
(514) 843-5959
nblanchard@argex.ca

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

LGC Capital Engages The Howard Group for Strategic Investor Communications

Not for distribution directly or indirectly in the United States

LONDON, United Kingdom and MONTREAL, Aug. 9, 2016  – LGC Capital Ltd. (TSXV: QBA) is pleased to announce that it has engaged The Howard Group Inc. of Calgary, Alberta to provide Investor Relations and Capital Market advisory services.

The Howard Group will focus on programs to expand the following of LGC Capital and involvement of the institutional, investment and retail investing communities. The Howard Group will arrange investor presentations and meetings with the investment community, establish an online presence with the retail investing audience, assist LGC Capital in the preparation of corporate materials, co-ordinate their electronic distribution, advise on LGC Capital’s website and internet presence, and include LGC Capital in The Howard Group’s ongoing electronic blog commentary “Insight LIVE”.

As consideration for these services, LGC Capital will pay The Howard Group a monthly fee of $5,000. In addition, subject to regulatory approval, LGC Capital will grant The Howard Group a stock option in respect of 1,000,000 common shares with an exercise price of $0.135 per share, which will vest on a quarterly basis over twelve months. The stock option will have a term of three years.

The agreement between LGC Capital and The Howard Group may be terminated by either party upon 30 days’ notice, after an initial six-month period ending February 9, 2017.

LGC Capital and The Howard Group are at arm’s length. The agreement between LGC Capital and The Howard Group is subject to the approval of the TSX Venture Exchange.

About LGC Capital

LGC Capital is one of the few public listed companies globally whose primary purpose is investing directly in the fast-growth Cuban economy. The company has significant shareholdings and joint ventures in well-established international businesses operating in the Cuban Oil and Gas exploration, Travel, Events, TV and Film Production support, Human Resources, Agricultural and Import and Export sectors.

Neither the TSX Venture Exchange nor its Regulation Service 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:

Canada Contact:
Rafi Hazan, Secretary and Director
Tel.: (514) 839-7234

London Office Contact:
David Lenigas, Co-Chairman and Chief Executive Officer
Anthony Samaha, Chief Financial Officer
Tel.: +44 (0) 20 7440 0640

Investor Relations Contact:
Dave Burwell
The Howard Group Inc.
Tel.: (403) 221-9015
Toll Free: 1-888-221-0915
Email: dave@howardgroupinc.com

Alaska Should Be Talking To CEMATRIX About Massive Highway Problems

A recent Bloomberg article quickly caught our attention as its title, Climate Change Is Hell on Alaska’s Formerly Frozen Highways”, addresses a huge issue that CEMATRIX solved for the City of Yellowknife in 2004, albeit on a smaller scale.

Author Greg Quinn wrote in detail about permafrost and the devastating effects it has on the lengthy 2,232 kilometre Alaskan Highway.  The article grabbed extensive press coverage including throughout Canada via the Financial Post. The article brought to mind a 2004 project where CEMATRIX’s cellular concrete, proprietary formulations and processes solved a regular and expensive headache along Yellowknife’s main thoroughfare, Franklin Avenue.  According to management,  the road frequently looked like a rollercoaster as permafrost thawed under the heat-trapping dark road surface.  

While it may sound improbable, the road bed would experience up to one metre of localized settlement as spring thaw hit. Enter CEMATRIX with cellular concrete, which acts as a floating, insulating base between the asphalt and the ground below. When re-constructed in 2004, areas with up to three metres of asphalt were removed and replaced with gravel,  prior to cellular concrete placement.

In speaking with company management, local Yellowknife engineers continue to report the CVX solution was THE answer and that minimal road repairs have been needed over the12 years since cellular concrete was used.  Its success scored CEMATRIX another contract win for a second Yellowknife project, McDonald Drive in 2010.

In Quinn’s article, he mentions that one section of the Alaska Highway that runs through the Yukon requires annual repairs of $30,000 per kilometre, that is seven times the cost of regular highway repairs.  The piece also refers to a quote from Fabrice Calmels, a researcher at Yukon College that states “It’s like taking five stories out of a 10-storey building” as he describes one critical section of the highway near Whitehorse.  Mr. Calmels said one solution is to keep the heat away by adding layers of insulation such as foam.

This application is only one of many uses for cellular concrete.  CEMATRIX has been working with Engineers across North America educating them on its product’s benefits and the extensive cost savings over other insulating products like Styrofoam, which is now under scrutiny for its environmental impact while being hidden from view.

Those in charge of Alaska’s highways only need to walk Franklin Road in Yellowknife to realize that the answer to their dilemma may be right under their feet.  

Recently CEMATRIX announced that it has formally partnered with the world’s largest cement company, LafargeHolcim, to co-develop the cellular concrete market.  Every time CEMATRIX makes a sale, it benefits LafargeHolcim as it is a sale that the cement giant would not have had if not for CEMATRIX and its solution. CEMATRIX has grown its annual business to over $15 million with a sales force consisting of three people. LafargeHolcim has a sales team many times larger than CEMATRIX, just in Canada.

This is all food for thought for investors.

Argex Titanium Announces Payment of Accrued Interest on 8% Convertible Debentures

MONTREAL, Quebec – August 5, 2016Argex Titanium Inc. (TSX:RGX) (the “Corporation” or “Argex”) is pleased to announce that it will pay accrued interest of $450,000 on its 8% convertible unsecured debentures (the “Debentures”) due on December 31, 2015, March 31, 2016 and June 30, 2016 through the issuance of an aggregate of 5,084,745 common shares to the holders of the Debentures.  In this regard, Argex has sent a notice in prescribed form to the registered holders of the Debentures and to CST Trust Company, the debenture agent.

The 5,084,745 shares will be issued at a price of $0.0885 per share, representing the volume weighted average trading price (“VWAP”) of Argex’s shares on the Toronto Stock Exchange for the five trading days ended August 3, 2016.  In accordance with the Debenture Indenture, the shares will be delivered on or before September 30, 2016.

Argex also announces that after obtaining approval from the holders of more than 66⅔% of the principal amount of the Debentures, the Corporation and CST Trust Company, as debenture agent, entered into a First Supplemental Indenture amending certain terms and conditions of the Debentures.  A copy of the First Supplemental Indenture is available under the Corporation’s profile on SEDAR at www.sedar.com.

As previously announced, the conversion price of the Debentures has been reduced to $0.11 per share from $1.14 per share.  In addition, should the VWAP of the common shares of the Corporation for a period of five trading days be at least $0.11, or should at least 50% of the principal amount of the Debentures have been converted by the holders thereof into common shares, Argex will have the right, but not the obligation, to compel the conversion of all or any part of the Debentures into common shares at the conversion price of $0.11 per share.  In order to do so, Argex will be required to send a notice to the holders of the Debentures at least 15 business days prior to the forced conversion date.

The Debentures were also amended to provide that interest payments may be made, at the option of the Corporation, through the issuance of common shares.  The issue price of shares issued in any such payment will be equal to the VWAP of Argex’s shares on the Toronto Stock Exchange for the five trading days immediately preceding the date on which Argex sends a notice in prescribed form to the holders of the Debentures.

About Argex Titanium

Argex Titanium Inc. has developed an advanced chemical process for the volume production of high grade titanium dioxide (TiO2) for use in high quality paint, plastics, cosmetics and other applications.  The Corporation’s unique proprietary process takes relatively inexpensive and plentiful source material from a variety of potential vendors, and produces TiO2 along with other valuable by-products. Argex’s process provides a significant cost and environmental advantage over current legacy TiO2 production methods.

CONTACT INFORMATION:

Nicole Blanchard
Corporate Communications and Investor Relations
Argex Titanium
(514) 843-5959
nblanchard@argex.ca

Forward Looking Statements

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

CEMATRIX Sends A Message About Future Expectations Following News of A Record Q2

CVX:TSX-V

CEMATRIX President and CEO Jeff Kendrick summed up today’s news of a record first half 2016 and Q2 in his quote:

“Our sales pipeline for projects scheduled for 2016 and 2017 are at the highest level in our history, excluding any potential additional sales expected to be generated from the recent Joint Marketing Agreement with Lafarge. We are taking the necessary steps to prepare the Company for this significant sales growth by building the additional required equipment, adding operational staff to be hired and trained, increasing product testing to facilitate marketing efforts and implementing the internal systems that will allow our staff to manage larger projects more efficiently.”

Projects on which CEMATRIX has been asked to submit bids now total $126 million with 89% of that total related to infrastructure.

Although CEMATRIX has spent years diversifying its business to round out the seasonality, it does somewhat mirror the construction season. The first half of the year is traditionally much slower than the second half.  CEMATRIX increased sales 19% to $5.9 million in comparison to the same period in 2015.  

Gross margin on sales was $1.2 million with reported positive EBITDA of $294,288. Management stated that increased labour costs for hiring additional staff in preparation of expected sales growth through the balance of 2016 and in 2017 brought margins down in H1 but expect them to improve as increased sales volume levels cover fixed costs.

cvx_160804chart

To view full news release, please click here.

Shares Outstanding: 34,475,994
Options: 3,425,000
Fully Diluted: 37,990,994

Tassie Shoal LNG Project – Environmental Approval Extended to 2052

LONDON, United Kingdom, HAVANA, Cuba and MONTREAL, QC, Aug. 4, 2016 – LGC Capital Ltd. (TSXV: QBA) is pleased to announce that MEO Australia Limited (“MEO Australia“), a company listed on the Australian Securities Exchange (ASX: MEO) and which is one of LGC’s portfolio companies, issued a press release today providing a significant update on MEO Australia’s 100% owned strategic Tassie Shoal Projects (proposed for offshore Northern Australia) with its LNG Project receiving updated environmental approvals that extend the approvals period for the LNG Project to 2052, and increase the flexibility to process gas of varying qualities into LNG.

MEO Australia has also stated that, under full development, the LNG Project has a design capacity of 3 Mtpa and the two Methanol plants would use 440 Mscf/d, or 4 trillion cubic feet (TCF) of raw gas over 25 years. LGC Capital holds 15.8% of MEO Australia and is its largest shareholder. MEO Australia’s press release is available on its web site at www.meoaustralia.com.au, under “Investor Relations/ASX Releases”.

LGC Capital holds 15.8% of MEO Australia and is its largest shareholder. MEO Australia’s press release is available on its web site at www.meoaustralia.com.au, under “Investor Relations/ASX Releases”.

David Lenigas, LGC Capital Ltd’s Co-Chairman & CEO, commented; “This is excellent news for MEO Australia’s massive Tassie Shoal Projects, comprising potentially one LNG plant and two methanol plants, and this latest environmental approval for the LNG side brings the LNG and methanol aspects in line with both having approvals until 2052. These projects are strategically located on a shallow water shoal within the North West Australian hydrocarbon precinct, approximately 275 km from Darwin. This latest approval should add significant long term value to the Tassie Shoals Projects.”

The full MEO Australia Media Release is as follows:

ASX & Media Release

Tassie Shoal Projects – Updated Environmental Approvals

Key Points:

• LNG Project environmental approval extended until 2052, now aligned with Methanol Project.
• LNG Project limit of 3% CO2 feed gas is removed, able to receive gas of varying qualities.
• Methanol and LNG projects provide low cost development options consistent with recent industry trend of modularised construction to reduce costs.

MELBOURNE, AUSTRALIA (4 August 2016)

MEO Australia Limited (ASX: MEO) is pleased to advise that its strategic Tassie Shoal Projects proposed for offshore Northern Australia have received updated environmental approvals that extend the approvals period for the LNG Project to 2052, and increase the flexibility to process gas of varying qualities into LNG.

The potential Tassie Shoal Projects, comprising one LNG plant (TSLNG) and two methanol plants (TSMP1 & TSMP2), are strategically located on a shallow water shoal within the North West Australian hydrocarbon precinct, approximately 275 km from Darwin, and surrounded by significant discovered but undeveloped high CO2 gas fields, currently held under retention leases.

TSLNG has a design capacity of 3 Mtpa and provides significant cost savings relative to other LNG development options. The updated environmental approvals clarify the potential for TSLNG to accept all gas qualities and compete on an even footing with other development options.

Under full development the two Methanol plants would use 440 Mscf/d, or 4 trillion cubic feet (TCF) of raw gas over 25 years. The plants can accept raw gas with a CO2 content of up to 30%. Methanol is a globally traded product with growing global demand in downstream chemical industries and also as a gasoline additive. MEO had previously reported that in conjunction with potential equity partners, it had offered to purchase raw unprocessed gas (including CO2) for US$3.15 MMBTU (January 2015 basis, delivered to TSMP plant gate), an offer which was rejected by producers at the time.

MEO Managing Director & CEO Peter Stickland commented:

“These updated environmental approvals for the LNG Project now align both the requirements for feedstock gas and the approval period to 2052. The Tassie Shoal Projects represent a high potential, low cost and long-term opportunity for MEO shareholders.

The industry is starting to recognise the need to take steps to collaborate to secure lowest cost and efficient resource development in Australia. The unique concept of the Tassie Shoal Projects represents an opportunity for industry to collaborate with MEO to commercialise the significant, undeveloped discovered resources in the region for the benefit of all stakeholders.”

About LGC Capital

LGC Capital is one of the few public listed companies globally whose prime purpose is investing directly in the fast-growth Cuban economy, through its wholly-owned subsidiary Leni Gas Cuba Ltd.

Leni Gas Cuba has significant shareholdings and joint ventures in well-established international businesses operating in the Cuban Oil and Gas exploration, Travel, Events, TV and Film Production support, Human Resources, Agricultural and Import & Export sectors.

Neither the TSX Venture Exchange nor its Regulation Service 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:

LGC Capital Ltd
www.lgc-capital.com

Canada Office contact:
Rafi Hazan, Secretary and Director
Tel: (514) 839-7234

London Office contact:
David Lenigas, Co-Chairman and Chief Executive Officer
Anthony Samaha, Chief Financial Officer
Tel: +44 (0) 20 7440 0640

CEMATRIX Corporation Announces Record Second Quarter Financial Results

Calgary, Alberta – August 4, 2016: CEMATRIX Corporation (TSXV: CVX) (the “Corporation” or the “Company” or “CEMATRIX”) announces the release of its consolidated financial results for the three and six months ended June 30, 2016.

Mid-Year Review

The Company had a solid start to 2016 in terms of record sales growth and contracted sales that are now at $11.3 million. The Company also announced that its wholly owned subsidiary, CEMATRIX (Canada) Inc., entered into a joint marketing agreement with Lafarge Canada Inc. (“Lafarge”), a member of LafargeHolcim (the “Joint Marketing Agreement”). The renewable five-year Joint Marketing Agreement is for the joint development of cellular concrete markets throughout Canada to increase the awareness of the construction challenges which can be solved by cellular concrete solutions and thereby grow sales.

The Company also announced that its wholly owned subsidiary, CEMATRIX (Canada) Inc., entered into a joint marketing agreement with Lafarge Canada Inc. (“Lafarge”), a member of LafargeHolcim (the “Joint Marketing Agreement”). The renewable five-year Joint Marketing Agreement is for the joint development of cellular concrete markets throughout Canada to increase the awareness of the construction challenges which can be solved by cellular concrete solutions and thereby grow sales.

In order to support this Joint Marketing Agreement, the continued growth of cellular concrete markets and the expected additional growth to be generated from this new working relationship, the Company intends to construct two new dry mix units, at an estimated cost of $2.5 million, and plans to have this equipment operational by the spring of 2017. The Company will also continue to hire, train and carry additional operating staff, as it ramps up to prepare for the additional expected sales growth, which will put pressure on short term margins.

Sales for the six months ended June 30, 2016, of $5.926 million, were at a record high for the Company and were up 18.9% in comparison to the same period in 2015. Gross margin on sales of $1.223 million, or 20.6% (as compared to 24.4% in  2015) increased by $9,569. The margin percentage on sales year to date in 2016 is below the yearly targeted level due to increased labour costs for hiring and training additional staff in preparation of expected sales growth through the balance of 2016 and in 2017, higher fixed operating costs and and lower margins on an ongoing oil and gas project due to a change in production methods to facilitate the lower daily volume requirements. Management expects the margin percentage on sales to improve through the balance of 2016 as sales volume levels increase to cover these fixed operating costs. EBITDA (earnings before interest, taxes, depreciation and amortization, including non-cash stock based compensation) was $294,288 for the six months ended June 30, 2016.

In order to improve the liquidity and to reduce finance costs, the Company, through its wholly owned subsidiary,  CEMATRIX (Canada) Inc., in April completed the transfer of its day to day banking to the Canadian Western Bank pursuant to an agreement for a $2,000,000 demand operating loan. The new demand operating loan was used to repay the balance of the outstanding mezzanine loan which had an interest rate of 16.5% and will be used to finance day-to-day operations. In addition, CEMATRIX (Canada) Inc. entered into an agreement with the Business Development Bank of Canada which will provide the Company with $500,000 of additional working capital financing. This will be used, as required, to fund incremental product testing and the implementation of a new sales and project management system. In addition, CEMATRIX (Canada) Inc. negotiated a one year extension of the principal repayment on the Secured Debenture to February 2018.

Based on quotes that have been submitted, or are in the process of being submitted, management is forecasting strong growth in Canadian and U.S. infrastructure sales for the remainder of 2016 and 2017. Sales in the oil and gas sector will remain steady but at a lower level than in 2015 and 2016 year to date. Contracted sales are already at $11.3 million and are expected to increase significantly for projects scheduled for the remainder of 2016 and 2017.

Management also expects to see increased sales development as the Joint Marketing Agreement with Lafarge becomes operational. One of the significant benefits to this Joint Marketing Agreement is that Lafarge has a large sales team throughout Canada, but it will take some time to educate their sales staff and to start to realize on the benefits of this new business arrangement “Our sales pipeline for projects scheduled for 2016 and 2017 are at the highest level in our history, excluding any potential additional sales expected to be generated from the recent Joint Marketing Agreement with Lafarge” stated Jeff Kendrick, President and CEO of CEMATRIX. “We are taking the necessary steps to prepare the Company for this significant sales growth by building the additional required equipment, adding operational staff to be hired and trained, increasing product testing to facilitate marketing efforts and implementing the internal systems that will allow our staff to manage larger projects more efficiently.”

“Our sales pipeline for projects scheduled for 2016 and 2017 are at the highest level in our history, excluding any potential additional sales expected to be generated from the recent Joint Marketing Agreement with Lafarge” stated Jeff Kendrick, President and CEO of CEMATRIX. “We are taking the necessary steps to prepare the Company for this significant sales growth by building the additional required equipment, adding operational staff to be hired and trained, increasing product testing to facilitate marketing efforts and implementing the internal systems that will allow our staff to manage larger projects more efficiently.”

Financial Results

Selected financial information for the three and six months ended June 30, 2016 and 2015 is as follows:

CVX_160804financial

This press release should be read in conjunction with the Corporation’s unaudited Consolidated Financial Statements and Management Discussion and Analysis for the three and six months ended June 30, 2016, both of which can be found on SEDAR.

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.

For further information, please contact:

Jeff Kendrick – President and Chief Executive Officer
Phone: (403) 219-0484

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 May 4, 2016 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities regulators.