MISSISSAUGA, ON, May 16, 2013 /CNW/ - Covalon Technologies Ltd. (the
"Company") (TSXV: COV), an advanced medical technologies company, today
announced the proposed consolidation of its issued and outstanding
common shares ("Shares") on a basis of 10 pre-consolidated Shares for
each post-consolidation Share, subject to shareholder approval and TSX
Venture Exchange approval. The proposed consolidation is to be put
before shareholders at the Company's Annual and Special Meeting of
shareholders to be held on June 13, 2013. The Company will not be
changing its name in connection with the consolidation.
Currently, a total of 92,761,708 Shares are issued and outstanding.
Accordingly, if the consolidation is put into effect, a total of
9,276,171 Shares would be issued and outstanding following the
consolidation, before taking into account cancellation of any
fractional shares and assuming there are no other changes in the issued
capital of the Company. The change in the number of Shares that will
result from the consolidation will cause no change in the capital
attributable to the Shares and will not materially affect any
shareholder's percentage ownership in the Company, even though such
ownership will be represented by a smaller number of Shares.
Both management and the board of directors believe that the Company is
at a critical stage in its growth and that its inability to finance or
attract new investors is hampering the Company from taking advantage of
a number of opportunities available in the current market. Management
and the board believe that if the consolidation is approved and
effected, the Company will benefit from greater investor interest,
improved trading liquidity, and an ability to raise additional capital
to finance its current business activities at a higher price per Share.
The proposed consolidation of its share capital will also better
position the Company to pursue other business prospects.
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 our website at 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.
SOURCE: Covalon Technologies Ltd.
For further information:
CEO, Covalon Technologies Ltd.
T: (905) 568-8400 x 233
F: (905) 568-5200