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.
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