MISSISSAUGA, ON, May 29, 2020 /CNW/ - Covalon Technologies
Ltd. (the "Company" or "Covalon") (TSXV: COV; OTCQX: CVALF), an
advanced medical technologies company, announced today that it is
relying on the exemption provided in Ontario Instrument 51-502
Temporary Exemption from Certain Corporate Financial
Requirements (and similar exemptions provided by the other
Canadian securities regulators) to postpone the filing of the
interim financial statements and management's discussion and
analysis for the quarter ended March
31st, 2020. The Company expects to file the
Documents within the 45-day postponement period.
Until the Company has filed the Documents, members of the
Company's management and other insiders are subject to an insider
trading black-out policy that reflects the principles in section 9
of National Policy 11-207 Failure-to-File Cease Trade Orders and
Revocations in Multiple Jurisdictions.
An update on material business developments since the filing of
the Company's interim financial report for the period ended
December 31st, 2019 is
described below, certain of which have already been disclosed in
prior press releases:
The CovaGuard™ Technology
On March 31st, 2020,
Covalon announced CovaGuard™, its new antimicrobial technology
platform. The CovaGuard antimicrobial technology ("CovaGuard") is
specifically formulated to be effective at killing pathogens on
contact with the added benefit of providing persistent protection
by trapping and deactivating microbes over an extended period.
"I am very pleased with the ongoing business discussions around
our CovaGuard technology and the resulting products that have been
cleared for sale," said Brian
Pedlar, Covalon's Chief Executive Officer. "CovaGuard has
the opportunity to be a strong platform technology for Covalon and
we are in discussions with a number of potential distribution
partners throughout our key markets. Many of these
discussions are opening up new opportunities for Covalon and our
existing portfolio of antimicrobial products."
The Company has since begun production of a hand sanitizer and
antimicrobial spray based on the CovaGuard technology at its
facility in Mississauga,
Ontario. The Company is in the process of manufacturing an
initial run of approximately 750,000 bottles of product based on
inventory presently on hand. As previously reported, the Company
continues to be actively engaged in discussions with potential
manufacturing partners, United
States distributors, and international distribution networks
to increase available product and access market demand. Preliminary
sales have begun in the United
States and other international jurisdictions.
CovaGuard Antimicrobial Hand Sanitizer with Benzalkonium
Chloride and CovaGuard Mask Antimicrobial Sanitizer with
Benzalkonium Chloride are now available for purchase in
the United States at
covaguard.com.
In Canada, Covalon is awaiting
Health Canada's approval of the product names selected by the
Company. A foaming hand sanitizer, a spray sanitizer, and a surface
disinfectant are anticipated to be available for use in
Canada under the approved product
names.
Loan from the US Paycheck Protection Program and Other
COVID-19 Relief Programs
Covalon applied and was approved for a United States Paycheck
Protection loan totalling USD$1,103,861 from the US Small Business
Administration under the US Paycheck Protection Program. The
Loan will be forgiven if certain conditions are met, and otherwise
carries interest of 1% and will be repayable over a two-year
term.
The Company also applied and was approved for funding of
CAD$256,106 to date under the
Canadian Emergency Wage Subsidy Program. This non-refundable
subsidy assists companies that have been negatively impacted by
COVID-19.
The Company continues to work with HSBC Bank Canada to apply for
additional financial programs that Covalon qualifies for.
Additions to Covalon's Board of Directors
On April 23rd, 2020,
Covalon announced that Martin
Goldfarb, O.C., had joined its Board of Directors. On
April 27th, 2020, Covalon
announced that Amir Boloor had
joined its Board of Directors. With these new additions, eleven
directors now sit on Covalon's Board.
HSBC Banking Agreement
As at March 31, 2020, the Company
did not meet several of the covenants associated with its
acquisition and operating banking credit facility. Management is in
continued discussions with HSBC Bank Canada ("HSBC") regarding the
Company's acquisition and operating banking credit facility and is
working with HSBC to obtain waivers for any covenants that the
Company has not met and projects it will be unable to meet due to
the ongoing indeterminate nature of the COVID-19 pandemic. Based on
discussions to date, the Company continues to believe that it will
obtain the necessary waivers in due course; however, no assurance
can be provided. A further update will be provided at the
appropriate time.
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 infection
control, vascular access, surgical procedures, advanced wound care,
and medical device coatings. To learn more about Covalon, visit our
website at www.covalon.com.
CovaGuard™ is a registered trademark of Covalon Technologies
Ltd. in Canada and the United States.
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 believe 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
March 31, 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.
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SOURCE Covalon Technologies Ltd.