Covalon Technologies Ltd ("Covalon" or the Company), an advanced medical technology company, sold its AquaGuard Product Line to TIDI Products for US$30 million (approximately CDN$38 million), subject to adjustments for estimated cash, inventory and working capital amounts at closing.
The transaction includes the sale of moisture barrier products sold under the AquaGuard brand, certain trademarks and intellectual property, related customer contracts, and the manufacturing assets to support the AquaGuard business.
TIDI Products, LLC manufactures medical products. The Company offers a wide range of products to medical professionals under their different brands; Posey, Sterile-Z, C-Armor, PenBlade, TIDI Shield, Grip-Lok, and Zero-Gravity, TIDI Products serves customers worldwide.
Covalon Technologies Ltd is a medical technology company that develops and manufactures medical products in the areas of infection, tissue repair, medical device biocompatibility and condition management.
The AguaGuard Product Line offers impermeable moisture barrier products that prevent infection during and after medical procedures.
This transaction results in a strong balance sheet; signicant cash and no debt, allowing Covalon to focus on accelerating the growth of their core patented medical platforms in the US and Globally. Covalon will have a pro forma cash position of approximately CDN$24 million or CDN$0.93 per share after repayment of all outstanding debt. The sale results in a net gain, prior to transaction expenses, of approximately CDN$20 million over what Covalon paid for the AquaGuard business approximately 3 years ago.
