MISSISSAUGA, ON, May 25, 2022
/CNW/ - Covalon Technologies Ltd. (TSXV: COV) (OTCQX: CVALF) (the
"Company" or "Covalon"), an advanced medical
technologies company, today announced that it has filed its
intention to make a normal course issuer bid (the "NCIB")
for its common shares with the TSX Venture Exchange (the
"Exchange" or "TSXV"). The NCIB remains subject to
regulatory approval.
At the opening of the stock market on today's date, the Company
has 25,928,677 common shares issued and outstanding. Under the
NCIB, if regulatory approval has been obtained, the Company may
acquire up to 1,296,433 common shares over the next 12-month
period, representing 5% of the issued and outstanding common
shares. Assuming the receipt of regulatory approval, Covalon may
purchase its common shares during the period from June 1, 2022 to May 31,
2023, provided that if prior to May
31, 2023, the maximum number of common shares purchasable
under the NCIB have been acquired by the Company, the NCIB shall
terminate on such earlier date where the maximum number was
reached.
The actual number of common shares which may be purchased
pursuant to the NCIB and the timing of any purchases will be
determined by management and the board of directors of Covalon (the
"Board of Directors"). The NCIB will be conducted through
Covalon's broker, PI Financial Corp. and made in accordance with
the policies of the Exchange. The price which the Company will pay
for any such common shares will be the market price at the time of
acquisition. All common shares purchased pursuant to the NCIB will
be returned to treasury for cancellation, and all such purchases
will be made on the open market through the facilities of the
Exchange.
Transactions under the NCIB will depend on future market
conditions. Covalon retains discretion whether to make purchases
under the NCIB, and to determine the timing, amount and acceptable
price of any such purchases, subject at all times to applicable
Exchange and other regulatory requirements.
The Board of Directors believes that during the course of the
NCIB the market price of the common shares may not, from time to
time, reflect the underlying value of the Company. As a result,
depending upon future price movements and other factors, the Board
of Directors believes that the purchase of the common shares may be
in the best interests of the Company and its shareholders.
Furthermore, any purchases are expected to benefit all persons who
continue to hold common shares by increasing their equity interest
in the Company when the repurchased common shares are
cancelled.
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 TSXV, 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
Neither TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this release.
This news release may contain assumptions, estimates, and
other forward-looking statements regarding future events. Such
forward-looking statements involve inherent risks and uncertainties
and are subject to factors, many of which are beyond the Company's
control that may cause actual results or performance to differ
materially from those currently anticipated in such
statements.
SOURCE Covalon Technologies Ltd.