Covalon Announces Closing of AquaGuard Acquisition Combining Covalon’s Rich Technology Portfolio with AquaGuard’s Excellent Products and Specialized Salesforce Capable of Selling Covalon’s Products Throughout the United States
As previously announced,
$4.7 million (US$3,617,392)in cash paid on closing
$0.03 million (US$20,608)in cash within 5 business days of closing
$0.65 million (US$500,000)of shares of Covalonissued on closing, which will be held in escrow for up to two years
$3.32 million (US$2,552,300)payable 12 months from the date hereof
$65 million (US$5,000,000)payable 24 months from date hereof
$0.89 million (US$684,700)of assumed liabilities payable to management and key staff of AquaGuard by issuance of shares of Covalonon closing
In addition, there is potential contingent consideration of up to
$1.17 million (US$900,000)payable upon achievement of certain revenue targets by December 31, 2018.
During its last fiscal year ended
AquaGuard is a
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.
This news release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including completion of the integration of AquaGuard, the difficulty in predicting product approvals, acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, the regulatory environment, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors should consult the Company's ongoing quarterly filings for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. The Company assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.