Covalon Technologies closes $2.33M financing

pcNewsWireCovalon Technologies Ltd. (TSX-V: COV) has completed a non-brokered private placement of 1,190,671 units at $1.96 per unit for gross proceeds of $2,333,715.

Proceeds will be used by Covalon to develop and commercialize new wound care products, expand international distribution channels and for general working capital.

News Release

Covalon Announces Closing of Non-Brokered Private Placement and Exercise of Warrants

MISSISSAUGA, Ontario – June 1, 2017 – /Business Wire/ – Covalon Technologies Ltd. (the “Company” or “Covalon”) (TSXV: COV), an advanced medical technologies company, today announced that, further to its press release dated May 12, 2017, it has completed a non-brokered private placement offering comprised of 1,190,671 units (each, a “Unit”) of the Corporation at a price of $1.96 per unit for aggregate gross proceeds of $2,333,715 (the “Offering”). Additionally, 775,000 previously issued Common Share purchase warrants have been exercised for aggregate proceeds of $775,000.

Each Unit is comprised of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Warrant entitles the holder to acquire an additional Common Share at a price of $2.30 per share for a period of three years from the closing date.

Insiders participated in the Offering for an aggregate of 765,351 Units for gross proceeds of $1,500,088. All securities issued pursuant to the Offering will be subject to a hold period expiring October 2, 2017. Proceeds of the Offering will be used by Covalon to develop and commercialize new wound care products, expand international distribution channels and for general working capital.

No commission or finder’s fee was paid in connection with the Offering. The Offering has been approved by the TSX Venture Exchange.

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, please contact:

Brian Pedlar, CEO, Covalon Technologies Ltd.
Email: bpedlar@covalon.com
Phone: 905.568.8400 x 233
Toll free: 1.877.711.6055
Web site: www.covalon.com
Twitter: @covalon

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.

SOURCE: Covalon Technologies Ltd.