Martinrea International Inc. Announces Agreement to Invest in NanoXplore Inc.
TORONTO, Dec. 18, 2018 (GLOBE NEWSWIRE) -- Martinrea International Inc. (TSX: MRE) (“Martinrea” or the “Company”), a leader in the development and production of quality, lightweight metal parts, assemblies and modules and fluid management systems and complex aluminum products, announced today it intends to subscribe for 11,538,461 common shares in NanoXplore Inc. (“NanoXplore”: TSX-V: “GRA”) pursuant to a private placement announced by NanoXplore for the issuance of common shares and convertible debentures.
Martinrea currently holds an aggregate of 5,911,800 common shares of NanoXplore shares, 2,750,000 warrants to purchase additional Shares of NanoXplore at an exercise price of $0.70 per share and 205,900 warrants to purchase additional Shares of NanoXplore at an exercise price of $2.30 per share which were acquired in two separate private placement transactions. This investment, when completed, would bring Martinrea’s ownership interest in NanoXplore to approximately 16% of the issued and outstanding Shares of NanoXplore, depending on the final size of NanoXplore’s private placement.
In addition, Martinrea announced it entered into an updated Memorandum of Understanding with NanoXplore, the key features of which include:
-- NanoXplore’s commitment to provide graphene to meet Martinrea’s needs for the material in its operations; -- NanoXplore’s commitment to assist in the development of graphene-related products and technologies related to Martinrea’s business; and, -- Martinrea’s agreement to assist NanoXplore in the development of its operations.
In commenting on the transaction, Pat D’Eramo, Martinrea’s President and CEO, noted: “ We are very excited with the opportunities we see in the development and use of graphene enhanced products. We are a lightweighting company, focused on providing our customers solutions using a variety of advanced materials in steel, aluminum, or a combination of both, as well as other materials. Graphene has potential applications in many areas of our business, and we are presently developing prototypes and other breakthrough opportunities. We believe our strategic investment in NanoXplore is a good one, and our involvement will help NanoXplore in its operations and development. We have been working well to date and this relationship will continue to be mutually beneficial.”
Closing of the transaction is anticipated in January 2019.
Martinrea currently employs approximately 15,000 skilled and motivated people in 45 operating divisions in Canada, the United States, Mexico, Brazil, Germany, Slovakia, Spain and China.
Martinrea’s vision: making lives better by being the best supplier we can be in the products we make and the services we provide. The Company’s mission is to make people’s lives better by delivering: outstanding quality products and services to our customers; meaningful opportunity, job satisfaction and job security to our people through competitiveness and prudent growth; superior long term investment returns to our stakeholders; and positive contributions to our communities as good corporate citizens.
This press release contains forward-looking statements within the meaning of applicable Canadian securities laws including the closing of the transaction to invest in NanoXplore, the impact of the use of graphene in the Company’s business, the Company’s belief on its investment in NanoXplore, the benefits of their relationship and the ability to assist in the operations and development of NanoXplore, as well as other forward-looking statements. The words “continue”, “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “views”, “intend”, “believe”, “plan”, “outlook” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances, such as expected sales and industry production estimates, current foreign exchange rates (FX), timing of product launches and operational improvements during the period and current Board approved budgets. Many factors could cause the Company’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the risk factors and other information, some of which are discussed in detail in the Company’s Annual Information Form and other public filings which can found at www.sedar.com. Martinrea cautions that the list of risk factors and uncertainties is not exhaustive and other factors could also adversely affect its results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. Furthermore, the forward-looking statements contained in this press release are made as at the date of this press release and Martinrea does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
The common shares of Martinrea trade on The Toronto Stock Exchange under the symbol “MRE”.
For further information, please contact:
INVESTOR RELATIONS:Fred Di Tosto, Chief Financial OfficerMartinrea International Inc. email@example.com Tel: 416.749.0314
MEDIA CONTACT:Deanna Lorincz, Global Director, Communications and Marketing firstname.lastname@example.org Tel: 248.392.9727 | Mobile: 586.634.1766