Saturday, August 18, 2018
 
 
Company News: Page (1) of 1 - 08/09/18 Email this story to a friend. email article Print this page (Article printing at MyDmn.com).print page facebook
Covalon Announces Major Banking Milestone

(August 09, 2018)

• New $17 million acquisition and operating banking facility with major international bank HSBC and Export Development Canada.


• Credit facility will allow Covalon to fund its acquisition plans which are proceeding well.

MISSISSAUGA, Ontario--(BUSINESS WIRE)--#banking--Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV; OTCQX: CVALF), an advanced medical technologies company, today announced that the Company has entered into a new acquisition and operating banking credit facility with HSBC Bank Canada (“HSBC”) that provides the Company with up to $17 million of credit. In support of Covalon, Export Development Canada (“EDC”) has partnered with HSBC to provide partial guarantees under the banking facility.

The HSBC banking agreement includes a $9 million (Canadian Dollars) acquisition demand line, a $5 million (Canadian Dollars) revolving operating facility, and a $2 million (US Dollar) bank guarantee facility. HSBC will also provide the Company a foreign currency hedging facility, and corporate credit card facility in support of the Company’s ongoing operations. The term of the acquisition demand line is repayable over five years.



Mr. Brian Pedlar, Covalon’s Chief Executive Officer, said, “The HSBC credit facility will allow Covalon to fund its acquisitions plans, which are proceeding well, in addition to its inventory and working capital needs as the Company grows. For Covalon to have earned the trust of such a major international bank like HSBC is quite an achievement, especially given the large amount of the facility. HSBC is well-known as one of the world’s largest international banks which is a perfect fit for Covalon since most of Covalon’s business is international. This banking agreement is in the best interests of shareholders as it provides growth capital to Covalon without the need for the dilution resulting from the issuance of shares.”

Mr. Danny Brannagan, Covalon’s Chief Financial Officer, stated, “This major banking facility with HSBC also earned the active support and cooperation of Export Development Canada. Both HSBC and EDC have been a pleasure to deal with offering Covalon much support, expertise, and professionalism.”

HSBC Commercial Banking operates in 53 countries and territories, covering the developed and developing markets and has been servicing Canadian businesses since 1981. HSBC Bank Canada is a subsidiary of British banking giant HSBC – one of the largest banking groups in the world. HSBC Bank Canada is the seventh largest bank in Canada.

Export Development Canada (EDC) helps Canadian companies go, grow, and succeed in their international business. As a financial Crown corporation, EDC provides financing, insurance, bonding, trade knowledge, and matchmaking connections to help Canadian companies sell and invest abroad.

About Covalon

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 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.


Contacts

Covalon Technologies Ltd.
Brian Pedlar, 905-568-8400 x 233
CEO
[email protected]
Toll free: 1.877.711.6055
Web site: www.covalon.com
Twitter: @covalon


Page: 1


Related Keywords:
Related Sites: DMN Newswire ,   HTN - Health Technology Net
Related Newsletter: Tutorial Finder ,   Review Seeker ,   DMN Newswire Newsletter
 
 
 
 
 
 
 
Seniors

Drugs
  • Neurovascular Devices Market High Revenue at USD 24,650 mn by 2023 | Therapeutic Application Hemorrhagic & Ischemic Strokes | Worldwide Segmentation by MRFR
  • The Alzheimer's Research and Prevention Foundation (ARPF) Announces Second Brain Longevity® Therapy Training Program in Washington D.C.
  • Image Guided Radiotherapy Market to Experience Unfaltering Growth at 15.8% CAGR to Revolutionize the Healthcare Sector by 2023
  • Disposable Negative Pressure Wound Therapy Devices Market: Global Industry Analysis (2012 - 2016) & Opportunity Assessment (2017 - 2027)
  • Elysium Health™ Announces Exclusive License for Use of Nicotinamide Riboside for the Slowing of Aging and Prevention of Age-Related Diseases from Mayo Clinic and Harvard

    Cancer
  • Biotest AG: Cytotect(R) CP prevents transmission of Cytomegalovirus (CMV) to the unborn baby in pregnant women who are infected with CMV for the first time
  • ViewRay Announces Full Exercise of Underwriters' Option to Purchase Additional Shares and Closing of Public Offering of Common Stock
  • Mirati Therapeutics Announces Presentation Of KRAS G12C Chemistry Advances At The 255th American Chemical Society (ACS) National Meeting And Exposition
  • Agenus Receives Second Milestone Payment from Merck
  • Colorado Pain Care Broadens Practice to Include Cancer Patient Treatment in Denver, CO and Surrounding Area
  •  
     
     
     
     
     





    Our Privacy Policy --- About The Health Technology - Contact Us - Advertise With Us - Privacy Guidelines