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Will collaborate on development of new biosensors and telehealth
technologies with wireless capabilities
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Mitec invests $2,496,000 for an approximate 9.9% equity interest in
Covalon at $0.30 per share
MISSISSAUGA, ON, Aug. 24, 2011 /CNW/ - August 24, 2011 - /CNW/ - Covalon
Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV), an advanced
medical technologies company, today announced the signing of a
strategic alliance agreement with Mitec Telecom Inc. (TSX: MTM), a
leading designer and manufacturer of mobile wireless components.
Covalon and Mitec have agreed to leverage the experiences of each other
by cooperating on the development and commercialization of
new-generation biosensors and telehealth technologies that incorporate
wireless capabilities. The use of these new wireless technologies and
sensors are destined to become one of the hottest segments of the
healthcare industry, where they can play key roles in dramatically
transforming patient monitoring, infection control, post-operative care
and drug delivery, among others.
Mitec has also invested $2,496,000 into Covalon, purchasing 8,320,000
shares at $0.30 per share or approximately 9.9% of Covalon on a
post-transaction basis. Final approval for the private placement has
been received from the TSX Venture Exchange.
Brian Pedlar, Covalon's President and CEO said, "Covalon recently
discovered that our portfolio of patents and intellectual property
allow us to develop an extremely unique approach to telehealth and
biosensor technology. When combined with some of the wireless
capabilities that Mitec is strong in, it has the potential to allow
Covalon to introduce several exciting new technologies and formulations
to the medical and consumer marketplaces. That is why Covalon is
pleased to enter into a strategic relationship with Mitec."
Jeffrey Mandel, President and CEO of Mitec said, "This is exactly the
kind of proprietary, valued-added market position we are seeking to
grow at Mitec. We look forward to working with Covalon on the many ways
we can combine our expertise. We are excited to share information on
how we can jointly develop ways to improve healthcare and patient
experiences using wireless technology." As part of the strategic
alliance, Jeffrey Mandel will join Covalon's Board of Directors.
About Covalon
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 our website at www.covalon.com
About Mitec Telecom Inc.
Mitec is a leading designer and provider of radio frequency (RF)
products for the telecommunications and satellite communications
industries, as well as a variety of other sectors. Mitec sells its
products worldwide to network providers for incorporation into
high-performing wireless networks used in voice and data/internet
communications. Headquartered in Montreal, Canada, Mitec also operates
a facility in California. Mitec is listed on the Toronto Stock Exchange
under the symbol MTM. On-line information about Mitec is available at www.mitectelecom.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 risks 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.