MISSISSAUGA, ON, Jan. 11, 2016 /CNW/ - Mr. Abe Schwartz, and Covalon Technologies Ltd. ("Covalon") (TSXV: COV), an advanced medical technologies company, announce, pursuant to National Instrument 62-103, that as a result of a settlement arrangement (the "Settlement Arrangement") between Mitec Technologies Inc. ("Mitec") and Mr. Abe Schwartz, who is Covalon's Chairman and a Control Person under TSX Venture Exchange rules, Mr. Schwartz has acquired from Mitec 1,547,191 shares in the capital of Covalon and 967,650 common share purchase warrants of Covalon expiring August 30, 2016. A portion of the shares that Mitec is transferring to Mr. Schwartz were acquired pursuant to conversion of its convertible debenture in the capital of Covalon.
The Settlement Arrangement relates to the repayment by Mitec of $2,000,000 in secured debt owing to Mr. Schwartz. The Settlement Arrangement has received approval by the TSX Venture Exchange.
As a result of the Settlement Arrangement, Mr. Schwartz increases his holdings to 2,585,930 common shares of Covalon (from 11.16% to 25.05% of its total issued and outstanding shares), and to 10,846,780 common share purchase warrants exercisable for an aggregate of 3,871,480 common shares (from 9,878,830 common share purchase warrants exercisable for an aggregate of 2,903,830 common shares). Mr. Schwartz may from time to time acquire additional securities of Covalon, dispose of some or all of the existing or additional securities he holds or will hold or may continue to hold his current position. Mr. Schwartz is relying on the private agreement exemption to takeover bid rules.
Mr. Schwartz has filed the required early warning report which is available on Covalon's SEDAR profile at www.sedar.com.
SOURCE Abe Schwartz