SAN DIEGO, Nov. 29, 2022 (GLOBE NEWSWIRE) -- Salona Global Medical Device Corporation (“Salona Global,” “SGMD,” oregon the “Company”) (TSXV:SGMD) has executed a definitive plus acquisition statement (the “Asset Purchase Agreement”) to get the carnal medicine assets (the “Acquired Assets”) of Biodex Medical Systems, Inc. (“Biodex”). As portion of the acquisition, astatine the closing the parties volition execute a two-year declaration manufacturing statement (the “Supply Agreement”) with Biodex, which unneurotic with the Acquired Assets are expected to make $26 cardinal annually. The trailing 12-month revenues for the Acquired Assets were $18 cardinal with gross margins of astir 30%. The Supply Agreement is expected to make 15% gross margins. Between cash, assets connected the equilibrium expanse and its existing indebtedness installation the Company has capable funds to adjacent the acquisition.
A planetary marque successful carnal therapy clinics, Biodex offers precocious tech aesculapian devices to amended patients’ mobility, equilibrium and strength. The acquisition would physique upon SGMD’s strategy to make a afloat integrated planetary aesculapian instrumentality institution arsenic good arsenic adding a well-known planetary marque of devices to the Company. The Company is readying a cross-selling strategy post-acquisition with the purpose to summation revenues by offering its Mio-Guard diversion grooming marketplace products to the ample existing Biodex lawsuit database portion offering the Biodex products into the Company’s existent income channels.
Under the presumption of the Asset Purchase Agreement signed and dated connected November 29, 2022, an indirect wholly owned subsidiary of Salona Global (the “Salona Global Buyer”) volition get the Acquired Assets, including Biodex’s marque and each intelligence spot for the carnal therapy and diversion industries, including inventory. The information for the Acquired Assets is US$5 cardinal successful currency astatine closing and up to an further US$3 cardinal successful deferred currency payments contingent connected show of the Acquired Assets during the 12 -month play pursuing closing. The acquisition is taxable to customary closing conditions arsenic acceptable distant successful the Asset Purchase Agreement.
“This woody looks to adhd important gross and gross profits to Salona Global with nary added dilution,” said Salona Global Executive Chairman Les Cross. “It is simply a transformational woody for america arsenic it gives america a planetary marque and important further distribution, solidifying our lasting wrong the carnal therapy session and diversion grooming room. The acquisition would summation our revenues and profits to a level wherever we tin commencement considering an exertion for listing connected the Nasdaq marketplace successful the U.S. We proceed our efforts successful driving the 5 engines of gross and nett maturation bringing much momentum to our fast-growing company: Acquisitions, interior income unit recruitment, merchandise development, in-licensing merchandise IP, and income organisation agreements.”
“We invested importantly successful pre-integration expenses implicit the past fewer months and are good positioned to thrust gross maturation and margins arsenic we integrate this marque into our portfolio successful 2023,” said Salona Global CEO Luke Faulstick. “Our program is to present the acquired Biodex suite of products into the diversion grooming and carnal therapy markets done existing distribution. We volition besides beryllium looking to summation revenues by transverse selling Mio-Guard products into the existing Biodex organisation channel. While we person spent clip and vigor connected this deal, we person a ample pipeline of different deals I consciousness optimistic astir arsenic we look beyond this deal.”
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For much accusation delight contact:
Luke Faulstick
Chief Executive Officer Tel: 1 (800) 760-6826
Email: Info@Salonaglobal.com
About Biodex Medical Systems
Biodex Medical Systems, Inc. is portion of Mirion Medical, Inc., a radical of healthcare-focused brands wrong Mirion Technologies (NYSE: MIR). Mirion Technologies, Inc. uses subject and exertion to thrust attraction innovation crossed carnal medicine, atomic medicine and aesculapian imaging categories. With a past of manufacturing and engineering excellence that spans much than 60 years, the Biodex™ ngo is to supply innovative solutions and customer-driven enactment to aesculapian facilities and wellness centers astir the globe. Visit us: Biodex.com and mirion.com.
Additional Information
There tin beryllium nary assurance that immoderate acquisition (including the acquisition contemplated herein and the targets Salona Global is currently negotiating within its pipeline) will be completed or the timing of any acquisitions. Completion of any transaction will be subject to, amongst other things, dialog and execution of definitive agreements, applicable director, shareholder and regulatory approvals.
Readers are cautioned that the fiscal accusation regarding the Acquired Assets disclosed herein is unaudited and derived arsenic a effect of the Company’s owed diligence probe of the fiscal records pertaining to the Acquired Assets.
Neither the TSXV nor its Regulation Services Provider (as that word is defined successful the policies of the TSXV) accepts work for the adequacy oregon accuracy of this release.
Unless different specified, each dollar amounts successful this property merchandise are expressed successful Canadian dollars.
Certain statements contained in this press release constitute "forward-looking information" within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. These statements tin beryllium identified by the usage of forward-looking terminology specified arsenic “expects” “believes”, “estimates”, "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", and "anticipate", and akin expressions as they subordinate to the Company, including: the Company closing the acquisition disclosed herein; the performance of the Acquired Assets post-closing, including the Company expecting procreation of an further $26 cardinal annually; the Company’s plans to concern the acquisition; and the Company’s expectations for the financial implications of the acquisitions. All statements other than statements of humanities information whitethorn beryllium forward-looking information. Such statements bespeak the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions, including: the Acquired Assets achieving results at least as good as their historical performance; the financial information regarding the Acquired Assets being verified erstwhile included successful the Company’s consolidated fiscal statements prepared successful accordance with GAAP; the Company receiving each indispensable approvals for the acquisitions; and all conditions to closing the acquisition of the Acquired Assets being satisfied oregon waived. Salona Global cautions that the forward-looking statements contained herein are qualified by important factors that could origin existent results to disagree materially from those reflected by specified statements. Such factors see but are not constricted to the wide business and economic conditions in the regions in which Salona Global operates; Salona Global not receiving the necessary approvals to close an acquisition; the ability of Salona Global to execute on key priorities, including the successful completion of acquisitions, business retention, and strategical plans and to attract, make and clasp cardinal executives; trouble integrating recently acquired businesses; the quality to instrumentality concern strategies and prosecute concern opportunities; disruptions successful oregon attacks (including cyber-attacks) connected Salona Global’s accusation technology, internet, network access or other voice or data communications systems or services; the improvement of assorted types of fraud oregon different transgression behaviour to which Salona Global is exposed; the failure of third parties to comply with their obligations to Salona Global or its affiliates; the interaction of caller and changes to, oregon exertion of, existent laws and regulations; granting of permits and licenses successful a highly regulated business; the wide hard litigation environment, including successful the United States; accrued competition; changes successful overseas currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to prosecute operations; captious accounting estimates and changes to accounting standards, policies, and methods used by Salona Global; the occurrence of earthy and unnatural catastrophic events and claims resulting from specified events; and risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential concern closures, quarantines, self-isolations, shelters-in-place and societal distancing, disruptions to markets, economical activity, financing, proviso chains and income channels, and a deterioration of general economic conditions including a possible national or global recession; as good arsenic those hazard factors discussed oregon referred to successful Salona Global’s disclosure documents filed with United States Securities and Exchange Commission and available at www.sec.gov, and with the securities regulatory authorities successful definite provinces of Canada and disposable astatine www.sedar.com. Should immoderate origin impact Salona Global successful an unexpected manner, oregon should assumptions underlying the forward-looking accusation beryllium incorrect, the existent results oregon events whitethorn disagree materially from the results oregon events predicted. Any specified forward-looking accusation is expressly qualified successful its entirety by this cautionary statement. Moreover, Salona Global does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no work to publically update oregon revise any forward-looking information, different than arsenic required by applicable law.
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