Covalon Announces Successful Completion of Operational Integration of AquaGuard Acquisition amid Continued Business Progress
AquaGuard, based in
Receiving a first payment of
$3.5 million USDunder a new license agreement with a large global medical company for certain rights to use Covalon’s patented antimicrobial medical coating technology. The license agreement also includes an additional $5 million USDin license fees payable to Covalonas certain technology development milestones are achieved, fees for Covalon’s technology development services and equipment, and ongoing royalties on worldwide product sales once regulatory clearance of the products is achieved;
Establishing a new
$17 millionacquisition and operating banking facility with major international bank HSBC Bank Canadaand Export Development Canada; and
Winning a series of highly-competitive contracts for
Covalonproducts in the Middle Eastwith an estimated sales value of $100 millionover a three-year period, which the Company has started to fulfil.
“The impact of these major positive achievements is truly transformative
As part of the purchase price of acquiring AquaGuard,
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 integration of the AquaGuard acquisition, 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.