Cematrix Corporation (TSXV: CVX) this morning announced that it has been awarded its largest contract yet, with the value of the contract being in excess of $15.7 million. The project is related to a large infrastructure project that is taking place in the Eastern USA.
The significant contract is related to a large infrastructure project occurring in whats referred to as the “Eastern USA,” with the company not providing specifics on the exact location. Cematrix’s load reducing fill will be used for a fifteen bridge and overpass construction project within the region.
The contract was awarded to a combination of Cematrix’s three subsidiaries, MixOnSite USA, Cematrix, and Pacific International Grout Company. While the project is significant in size, gross margins are expected to be on par with previous large projects completed by the company in the past.
It is the largest project that CEMATRIX has been awarded to date and it is a clear indication of the growth of the cellular concrete market in North America. .. This project is slated to commence in 2021 and is a tiny sample of the trillions of dollars that are required and expected to be invested into replacing aging infrastructure in the United States and Canada. North America has a major need for infrastructure investment into aging roads, bridges and tunnels in the coming years.Jeff Kendrick, CEMATRIX President and CEO
As a result of the awarded contract, Cematrix now has approximately $73.5 million in contracted and verbally approved projects within its backlog. Approximately $36.5 million of this figure is expected to carry over into 2021 and 2022.
Cematrix, which was recently featured in The Deep Dive’s Market Movers column, last traded at $0.47 on the TSX Venture.
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