Covalon Announces Sale of its AquaGuard® Product Line for US$30 Million or Approximately CDN$38 Million.
- Purchase and sale agreement executed with simultaneous closing with TIDI Products, LLC as buyer
- The transaction materially improves Covalon’s balance sheet to an estimated net cash position of approximately CDN$24 million or CDN$0.93 per share after repayment of all outstanding debt
- The sale results in a net gain, prior to transaction expenses, of approximately CDN$20 million or CDN$0.77 per share on an after-tax basis over what Covalon paid for the AquaGuard business approximately 3 years ago
- AquaGuard’s customers and distribution partners are expected to benefit from TIDI’s current extensive market reach, bringing AquaGuard to more patients and more hospitals
- Covalon will now focus on accelerating the growth of its three core patented platforms of infection prevention products, including Collagen Dressings, Antimicrobial Silicone Adhesive Dressings and Advanced Medical Coatings, in addition to other technologies developed by Covalon’s advanced medical laboratory
MISSISSAUGA, ON, July 29, 2021 /CNW/ – Covalon Technologies Ltd. (the “Company” or “Covalon“) (TSXV: COV) (OTCQX: CVALF), an advanced medical technologies company, is pleased to announce that it has today closed the sale of its AquaGuard product line to TIDI Products, LLC (“TIDI“), an arm’s length party, for US$30 million (or approximately CDN$38million), subject to adjustment for estimated cash, inventory and working capital amounts at closing.
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