TORONTO, Feb. 3, 2014 /CNW Telbec/ - Jeffrey Mandel, President and CEO of Mitec Technologies Inc. (TSXV: MTM.h), today issued the following statement:
"In the past few days, I have had questions from many of our shareholders about the share price increase of Covalon Technologies Inc. (TSX-V: COV) and what impact it has on the valuation of Mitec. I have decided to issue a press release so that all shareholders have the benefit of the same information.
On a fully diluted basis, Mitec currently owns approximately 15% of Covalon, of which I am also a member of its Board of Directors. Covalon's share price has risen from about $0.20 to $1.75 over the past six months.
Based on Covalon's current share price, Mitec's holdings in Covalon equates to approximately $0.40 of value on a per Mitec share basis. Mitec shares are currently trading below this price.
Furthermore, Mitec's current share price does not appear to reflect any value in the intellectual property Mitec recently acquired which has the potential, if successfully implemented, to prevent the type of electronic theft of sensitive credit card and customer information that has recently been reported in the media involving numerous major corporations.
Abe Schwartz, a successful and experienced serial entrepreneur, is Chairman of both Covalon and Mitec. He is quarterbacking Mitec's product development and commercialization strategies. I am very pleased with the progress Mitec is making.
I am equally pleased with the significant progress Covalon has made in executing a successful turnaround. The press release issued by Covalon on January 28, 2014 provides more complete information about this (see: http://cnw.ca/lU01w).
This press release suggests to me that Covalon's current share price does not fully reflect the financial impact of its recently announced major distribution deal for Covalon's advanced woundcare dressings with Mölnlycke Health Care, a worldwide leader in the woundcare market.
In particular, the $3.5 million USD advance payment that Covalon has received from Mölnlycke has not yet been reflected in its financial results.
For these and other reasons, I am optimistic about both Mitec and Covalon's future prospects."
This news release contains forward-looking statements which reflect Mitec'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 Mitec. Investors should consult Mitec'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 Mitec assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Mitec Technologies Inc.
For further information:
Source: Mitec Technologies Inc.
Mr. Jeffrey Mandel
President & CEO
Tel.: (905) 822-8170