• New $17 million acquisition and operating banking facility
with major international bank HSBC and Export Development Canada.
• Credit facility will allow Covalon to fund its acquisition plans which
are proceeding well.
MISSISSAUGA, Ontario--(BUSINESS WIRE)--Aug. 9, 2018--
Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV;
OTCQX: CVALF), an advanced medical technologies company, today announced
that the Company has entered into a new acquisition and operating
banking credit facility with HSBC Bank Canada (“HSBC”) that provides the
Company with up to $17 million of credit. In support of Covalon, Export
Development Canada (“EDC”) has partnered with HSBC to provide partial
guarantees under the banking facility.
The HSBC banking agreement includes a $9 million (Canadian Dollars)
acquisition demand line, a $5 million (Canadian Dollars) revolving
operating facility, and a $2 million (US Dollar) bank
guarantee facility. HSBC will also provide the Company a foreign
currency hedging facility, and corporate credit card facility in support
of the Company’s ongoing operations. The term of the acquisition demand
line is repayable over five years.
Mr. Brian Pedlar, Covalon’s Chief Executive Officer, said, “The HSBC
credit facility will allow Covalon to fund its acquisitions plans, which
are proceeding well, in addition to its inventory and working capital
needs as the Company grows. For Covalon to have earned the trust of such
a major international bank like HSBC is quite an achievement, especially
given the large amount of the facility. HSBC is well-known as one of the
world’s largest international banks which is a perfect fit for Covalon
since most of Covalon’s business is international. This banking
agreement is in the best interests of shareholders as it provides growth
capital to Covalon without the need for the dilution resulting from the
issuance of shares.”
Mr. Danny Brannagan, Covalon’s Chief Financial Officer, stated, “This
major banking facility with HSBC also earned the active support and
cooperation of Export Development Canada. Both HSBC and EDC have been a
pleasure to deal with offering Covalon much support, expertise,
HSBC Commercial Banking operates in 53 countries and
territories, covering the developed and developing markets and has been
servicing Canadian businesses since 1981. HSBC Bank Canada is
a subsidiary of British banking giant HSBC – one of the largest banking
groups in the world. HSBC Bank Canada is the seventh largest bank in
Export Development Canada (EDC) helps Canadian companies go,
grow, and succeed in their international business. As a financial Crown
corporation, EDC provides financing, insurance, bonding, trade
knowledge, and matchmaking connections to help Canadian companies sell
and invest abroad.
Covalon Technologies Ltd. researches, develops and commercializes new
healthcare technologies that help save lives around the world. Covalon's
patented technologies, products and services address the advanced
healthcare needs of medical device companies, healthcare providers and
individual consumers. Covalon's technologies are used to prevent, detect
and manage medical conditions in specialty areas such as wound care,
tissue repair, infection control, disease management, medical device
coatings and biocompatibility. To learn more about Covalon, visit www.covalon.com
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 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180809005794/en/
Source: Covalon Technologies Ltd.
Covalon Technologies Ltd.
Brian Pedlar, 905-568-8400 x 233
Web site: www.covalon.com