
Cematrix Corp. (CVX.V) manufactures and supplies technologically advanced cellular concrete products developed from proprietary formulations across North America. This unique cement-based material with superior thermal protection delivers cost-effective, innovative solutions to a broad range of problems facing the infrastructure, industrial (including oil and gas) and commercial markets.
Through recent acquisitions of Chicago based MixOnSite (MOS) and Bellingham based Pacific International Grout (PIGCO), CEMATRIX is now North America’s largest Cellular Concrete company.
Coverage was initiated August 2020 with notes on April 2021 and January 2022.
News Releases
Feb. 7 - Announces $5 Million Revolving Credit Facility with CIBC: "Our new credit facility strengthens our financial foundation and flexibility,” said Randy Boomhour, CFO at CEMATRIX. “This new credit facility will be used for working capital purposes to help enable CEMATRIX to continue to grow its sales throughout North America.”
Feb. 15 - Announces USD $4 Million Strategic Investment Commitment to Glavel Inc: Glavel, a foam glass aggregate producer based in Burlington, Vermont, is the first in North America to electrify the production process. The result is a low embodied carbon building material ideal for the infrastructure, residential and commercial construction markets. Glavel’s product is derived entirely from recycled glass which would otherwise be sent to landfill.
These products have a wide range of applications and complement the cellular concrete market due to their lightweight and insulating properties. Current applications include but are not limited to infrastructure applications such as the replacement of EPS Blocks (large blocks of rigid insulation) in overpass, bridge and retaining wall backfill projects and as an insulating sub-base for use over weak or unstable soils and for building applications including lightweight roof systems, under-slab insulation systems and building components.
The Investment will be completed in stages and be comprised of the purchase of equity securities, convertible notes, and warrants. The first stage of the investment will commence with the acquisition of 265,061 Series Seed Convertible Preferred Stock at a price of USD $2.114 per Share for an aggregate purchase price of USD $560,338. This first investment will give CEMATRIX a 9.4% ownership share of Glavel. These funds will be used mainly for working capital as production and sales ramp up from the first kiln. Subsequent investments will be by way of convertible notes into shares and warrants with established conversion values, and the proceeds from future tranches will be used for the purchase and commissioning of the second kiln for the Vermont facility in the near term.
Assuming CEMATRIX exercises all of the Glavel warrants it will receive as part of this agreement and converts all of its Glavel convertible debt and accrued interest within three years as planned, CEMATRIX will own between 40% and 45% of Glavel, barring any further investments by CEMATRIX or other offerings by Glavel. CEMATRIX will also have the opportunity to grow its investment in Glavel, as Glavel expands its operations with CEMATRIX’s assistance. In addition to providing sales and technical support, CEMATRIX will initially have one of three Board seats, which are commensurate to its planned fully diluted investment in Glavel.
Apr. 6 - Announces $4.1 Million in New Contracts: Executed $4.1M in new contracts which was previously characterized as contracts in process. Factoring in these new contracts, the converted contracts and the sales completed to date, the Corporation’s backlog now totals $82.1M; $20.9 million is contracted, $61.2M is in Process.
Apr. 14 - Announces 2021 Fourth Quarter and Annual Results:
May 2 - Completes Phase 2 and 3 of Its Strategic Investment in Glavel: CEMATRIX’s investment to date in Glavel is USD $1.68M of the total USD $4M committed.Under Phase 2, CEMATRIX advanced USD $0.62M to Glavel for the deposit on equipment to be used to expand production at Glavel’s manufacturing facility in Vermont.
The investment was by way of a Convertible Note (the “Note”) and will bear at 8% interest rate per annum. The Note matures April 20, 2025 and is convertible at $2.11 per share into 295,648 common shares of Glavel at any time up to maturity. As part of this investment, CEMATRIX received warrants to purchase up to 36,982 common shares of shares of Glavel for a period of 1.5 years from the date of issuance for an exercise price of USD $1.69.
Under Phase 3, CEMATRIX advanced USD $0.5M to Glavel in return for 236,518 Preferred Shares. These funds were advanced as additional working capital. The Preferred shares are convertible into common shares of Glavel at any time on a one for one basis. Upon completion of these two phases of financing, Jeff Kendrick, President and CEO of CEMATRIX, was provided a seat on the three member Board of Directors of Glavel.
May 11 - Announces 2022 First Quarter Results.
June 16 - Announces $3.9 Million in New Contracts; Wholly owned operating subsidiaries, which include CEMATRIX (Canada) Inc. (“CCI”), MixOnSite USA Inc. (“MOS”) and Pacific International Grout Company (“PIGCO’) have executed $3.9M in new contracts. Factoring in these $3.9M in new contracts,the Corporation’s backlog now totals $87.9 million. $22.4 million of the Corporation’s backlog is Contracted and $65.5 million is Contracts in Process.
July 11 - Grants Incentive Stock Options: Totaling 350,000 shares at $0.21 cent with expiry date of June 29, 2027.
Aug. 3 - Announces $22.5M in Contracts Executed including a $20.3M for Overpasses on a New US Freeway Corridor: Executed $22.5M in new contracts, $19.7M of which was converted from contracts in process. Factoring in the $22.5M in contracts executed,the Corporation’s backlog remains strong at $87.9 million. $42.1 million of the Corporation’s backlog is now Contracted and $45.8 million is Contracts in Process.
Aug. 10 - Announces 2022 Second Quarter Financial Results
Summary
Earnings
Year to date (YTD) 2022 revenue is ahead of 2021. However, Net Income results are much worse in 2022 (-3.74M vs. -0.48M). In only two reported quarters, net losses are almost double that of FY 2021! And cash is also down to 13.8M.

Overall, Cematrix does not appear on track to exceed FY2021 revenues.
Awards & Backlog
A total of $30.5M in awards were released for the period: i) $4.1M (April 2022), ii) $3.9M (June 2022) and iii) $22.5M (August 2022) which included a $20.3M award for an Overpasss on a new US Freeway Corridor.
“The $22.5 million in contracts executed since our last contract announcement include a $20.3 million ($15.8 million USD) contract with Balfour Beatty Infrastructure Inc. (“BB”) for the backfill of several new overpasses along a new freeway corridor in North Carolina. The US 70 Design-Build Project was awarded to MOS by BB and is the largest known cellular concrete infrastructure project ever awarded in North America. This is a major accomplishment for the CEMATRIX Group of Companies,” - CEMATRIX President and CEO.
As per the latest release, Cematrix backlog is at $87.9M with $42.1M contracted and $45.8M in process (August 2022).
Financing
A $5M Revolving Credit Facility with CIBC was announced February 2022. Otherwise, no public financing activities were reported. Last equity financing was March 2021, for $23M at $0.65 cents ; warrants at $0.81 cents (17.6M).
Investment
A USD$4M commitment in Glavel Inc. a company which converts recycling glass into foam glass agregates was made in February 2022. The first stage investment provided Cematrix with a 9.4% ownership which can translates ultimately into a 40-45% ownerships assuming all conditions are met. May 2022, Cematrix completed the investment.
“This portion of CEMATRIX’s investment will enable Glavel to order the equipment to double its manufacturing capacity and have it installed and operational in early 2023. The continued investment will also enable Glavel to strengthen its sales, marketing and technical support team. Glavel’s vision to supply a premium, environmentally friendly product from recycled glass, manufactured using clean energy for green infrastructure and building construction markets throughout North America is now a reality. - CEMATRIX President and CEO.
Incentive Stock Options
A total of 350,000 shares were granted at $0.21 cents (July 2022) which expires in 2027; Five years!
In short
The $20.3M award and Glavel investment (USD $4M) are the highlights for the period. The award is the largest of the company's history and may represent the beginning adoption of cellular concrete at scale. In contrast, the Glavel investment is perhaps the most underrated. Glavel's products are complementary to Cematrix and a potential 40-45% ownership in a entity that produce circular (recycled glass) and environmentally friendly materials is sensible.
Otherwise, Cematrix made a $0.33 cents high and a 52 week low of $0.17 cents; today! Macro-economics have had an impact on multiples but the earnings speaks for themselves; at face value CVX.V is not on target to exceed FY 2021 revenues much less FY 2020. It is evident that revenues are on a downward trends. Cement supply shortage, delays, and inflationary pressures have been cited. However, next earnings for FY 2022 could be different.
“The third quarter is traditionally our strongest quarter and we are on track to deliver the best quarter from a revenue standpoint in the history of the Company and as a result, we are anticipating a solid next quarter financially.”
-- CEMATRIX President and CEO.
Back in May 2022, Clarus set a $1.25 price target with FY 2022 revenues of $35.4M and $56.5M in 2023. Mpartners set a $1.00 target on FY 2022 revenues of $33M and $40M in FY2023 which it revised to $0.80 cents in August 2022.
“Despite the slower than anticipated start to the year, and the expected cement shortage supply chain issues, we remain very optimistic for the second half of 2022 that we can exceed revenue totals from past years and lay the foundation for what we anticipate being a very exciting 2023” - CEMATRIX President and CEO.
Based on the above, Cematrix might be in for a reversal.

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