MISSISSAUGA, ON, May 25, 2022 /CNW/ – Covalon Technologies Ltd. (TSXV: COV) (OTCQX: CVALF) (the “Company” or “covalon“), an advanced medical technology company, today announced that it has filed its intention to make a normal course issuer bid (the “ORCN“) for its common stock on the TSX Venture Exchange (the “To exchange” or “TSXV“). The NCIB remains subject to regulatory approval.
At the opening of trading on today’s date, the Company has 25,928,677 common shares issued and outstanding. Under the tender offer, if regulatory approval has been obtained, the Company may acquire up to 1,296,433 common shares during the next 12-month period, representing 5% of the issued common shares and in traffic. Assuming regulatory approval is obtained, Covalon will be able to purchase its common stock during the period June 1, 2022 for May 31, 2023provided that if before May 31, 2023the maximum number of common shares that may be purchased under the issuer bid has been acquired by the Company, the issuer bid ends on the earlier date on which the maximum number has been reached.
The actual number of common shares that may be purchased under the issuer bid and the timing of any purchase will be determined by management and the board of directors of Covalon (the “board of directors“). The issuer bid will be made through Covalon’s broker, PI Financial Corp. and in accordance with the policies of the Exchange. The price the Company will pay for such common shares will be the market price at the time of All Common Shares purchased pursuant to the Issuer Bid will be tendered into cash for cancellation, and all such purchases will be made in the open market through the facilities of the Exchange.
Transactions made under the tender offer will depend on future market conditions. Covalon retains discretion to make purchases under the Tender Offer and to determine the timing, amount and acceptable price of such purchases, subject at all times to applicable Exchange Requirements and other regulations.
The Board of Directors is of the opinion that during the course of the issuer bid, the market price of the common shares may not, from time to time, reflect the underlying value of the Company. Accordingly, depending on future price fluctuations and other factors, the Board of Directors believes that the purchase of Common Shares may be in the best interests of the Company and its shareholders. In addition, any purchase should benefit all persons who continue to hold Common Shares by increasing their ownership in the Company when the Common Shares repurchased are cancelled.
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 sold under the Covalon name; and (ii) developing and commercializing medical products for other medical companies under development and license agreements. The Company is listed on the TSX Venture Exchange under 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 the 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 press release may contain assumptions, estimates and other forward-looking statements regarding future events. These forward-looking statements involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Company’s control, that could cause actual results or performance to differ materially from those currently anticipated in such statements.
SOURCECovalon Technologies Ltd.
For further information: Brian Pedlar, CEO, Covalon Technologies Ltd., Email: [email protected]Phone: 905.568.8400 x 233, Toll Free: 1.877.711.6055, Website: www.covalon.com, Twitter: @covalon