MISSISSAUGA, ONTARIO--(Marketwire - August 28, 2009) - Covalon Technologies Ltd. (TSX VENTURE: COV) announces the release of its financial statements for the third quarter of fiscal 2009 ending June 30, 2009. Revenues from product sales, coating services and licensing fees for the three months ended June 30, 2009 were $401,837, an increase of $64,575 over the same period in the previous year. Total operating expenses excluding product were $1,339,495 for the three months ended June 30, 2009 a decrease of $559,691 from the three months ended March 31, 2009. At June 30, 2009, the Company had $7.8 million in cash and cash equivalents available for use.
Mr. Peter Hobbes, Covalon's Chief Financial Officer commented, "Covalon recently made the right decision to discontinue any attempt at building a custom manufacturing capability and instead focus on our core competencies of innovating and developing new products and technologies. This was a key factor in significantly reducing our operating expenses from the second quarter to the third quarter of fiscal 2009."
Dr. Frank DiCosmo, Covalon Co-Founder, President and Chief Executive Officer stated, "The past quarter and this summer has been extremely busy for all of us at Covalon. We have been working non-stop on a number of new initiatives at the same time as diligently continuing our efforts on existing projects. We anticipate that both these streams of effort will lead to some significant long term business for Covalon. We expect to be in a position to provide further information to our shareholders about significant initiatives in the coming weeks."
The Company has also announced the departure of Dr. Sonia Sanhueza as Chief Operations Officer. The Company feels that it can be more efficient and further reduce its expenses by not continuing to have someone hold such a position at this time given the decision taken to not build its own custom manufacturing facility.
The Company's consolidated financial statements and MD&A for the three and nine month periods ended June 30, 2009 are available on SEDAR at www.sedar.com and on the Company's website at www.covalon.com.
About Covalon Technologies Ltd.
Covalon Technologies Ltd. researches, develops, patents and commercializes advanced medical products and technologies including advanced collagen wound care dressings and specialized medical device coatings. Polymer chemistry and surface coating technology have been combined to create a range of time-release drug delivery platforms that can be applied to medical devices to treat many critical conditions. Covalon's products and technologies are licensed to other medical companies and distributors who incorporate them into their own product offerings and then sell them directly to hospitals, clinics and doctors.
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.
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.