Covalon Announces Receipt of First Payment Under New License Agreement
August 20 2018 - 8:00AM
Business Wire
Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV:
COV; OTCQX: CVALF), an advanced medical technologies company, today
announced that it has received $3.5 million USD under a new license
agreement (“Agreement”) with a large global medical company
(“Medical Partner”). The Agreement provides the Medical Partner
with certain rights to use Covalon’s patented antimicrobial medical
coating technology with some of its devices. The Agreement was
entered into in the ordinary course of business of Covalon and is
subject to confidentiality provisions.
In addition to the $3.5 million USD which has today been
received by Covalon, the Medical Partner has also agreed in the
Agreement to pay to Covalon:
- $5 million USD in additional license
fees as certain technology development milestones are
achieved;
- Fees for Covalon technology development
services and equipment; and
- Ongoing royalties on worldwide product
sales (subject to regulatory clearance of the products).
“This new license agreement is yet another milestone for
Covalon,” said Brian Pedlar, Covalon’s Chief Executive Officer. “It
is a validation of Covalon’s patented medical coating platform,
which helps prevent infections and saves lives in many clinical
settings.”
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
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180820005116/en/
Covalon Technologies Ltd.Brian Pedlar, 905.568.8400 x
233CEObpedlar@covalon.comToll free:
1.877.711.6055www.covalon.comTwitter: @covalon
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