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.

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.

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

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.