MISSISSAUGA, ON, Oct. 21, 2020 /CNW/ - Covalon Technologies Ltd.
(the "Company" or "Covalon") (TSXV: COV) (OTCQX: CVALF), an
advanced medical technologies company, announced today that its
Board of Directors has initiated a process to explore and evaluate
a range of strategic alternatives available to the Company (the
"Strategic Review") in order to enhance shareholder value.
Brian Pedlar, Covalon's President
and CEO, stated: "In response to expressions of interest made to
the Company by medical industry and private equity organizations,
our Board has decided to hire advisors to assist in undertaking a
Strategic Review process in order to ensure that all available
alternatives to enhance value for our shareholders are being
evaluated. As this process is undertaken, the Company remains
focused on continuing to execute its growth strategy, promoting its
life-saving products to the medical industry, and providing
meaningful growth opportunities to our dedicated staff. The entire
Board of Directors and the Company's major shareholders believe
that Covalon is significantly undervalued given its compelling
combination of patented intellectual properties, technology
platforms, commercialized medical product portfolio, and global
sales channels."
An independent special committee of the Board of Directors (the
"Special Committee"), chaired by Mr. Amir
Boloor and including Mr. Ron
Smith and Dr. Myrna Francis,
has been formed. The Special Committee will be tasked with
exploring and evaluating global strategic alternatives. These
alternatives may include, but are not limited to, continuing as a
standalone public company, a joint venture, or a potential sale or
merger of the Company, in whole or in part, including by a
strategic health company or private equity firm.
The Company's Board of Directors, including representatives of
its major shareholders, is committed to fully evaluating
appropriate strategic options while simultaneously supporting the
Company's management and employees in their ongoing efforts.
MPA Morrison Park Advisors Inc. ("MPA") has been retained by
Covalon to act as exclusive financial advisors to the Company with
respect to the Strategic Review. MPA has worked on various
strategic projects for the Company since 2017 under separate
arrangements. Under the terms of the engagement, MPA would
earn a success fee based on completion of a qualifying transaction.
The engagement with MPA will terminate on the earlier of completion
of a qualifying transaction or 15 days written notice by either
party.
The Company has not established a definitive timeline to
complete the Strategic Review, nor has it made any decisions
related to any strategic alternative at this time. There is no
assurance that any strategic transaction or transactions will
result from the Strategic Review. The Company does not expect to
make additional public comment regarding these matters until the
Board determines that additional disclosure is appropriate in
accordance with applicable securities laws.
About Covalon
Covalon Technologies Ltd. is a researcher, developer,
manufacturer, and marketer of patent-protected medical products
that improve patient outcomes and save lives in the areas of
advanced wound care, infection management and surgical procedures.
Covalon leverages its patented medical technology platforms and
expertise in two ways: (i) by developing products that are sold
under Covalon's name; and (ii) by developing and commercializing
medical products for other medical companies under development and
license contracts. The Company is listed on the TSX Venture
Exchange, having the symbol COV and trades on the OTQX Market under
the symbol CVALF. To learn more about Covalon, visit our website
at www.covalon.com.
Certain statements contained in this press release may
constitute forward-looking information. These statements relate to
future events or future performance. The use of any of the words
"could", "intend", "expect", "believe", "will", "projected",
"estimated", "proposed" and similar expressions and statements
relating to matters that are not historical facts are intended to
identify forward-looking information and are based on the Company's
current belief or assumptions as to the outcome and timing of such
future events. Such forward-looking information is subject to risks
and uncertainties that may cause actual results, performance or
developments to differ materially from those contained in the
statements. In particular, this press release contains
forward-looking information relating to the anticipated filing of
the Company's interim financial report for the quarter
ended June 30, 2020. Various assumptions or factors are
typically applied in drawing conclusions or making the forecast or
projections set out in forward-looking information. Those
assumptions and factors are based on information currently
available to the Company. The forward-looking information contained
in this press release is made as of the date hereof and the Company
is not obligated to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as required by applicable securities laws.
Because of the risks, uncertainties and assumptions contained
herein, investors should not place undue reliance on
forward-looking information. The foregoing statements expressly
qualify any forward-looking information contained herein.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/covalon-initiates-strategic-review-to-enhance-shareholder-value-301157008.html
SOURCE Covalon Technologies Ltd.