MISSISSAUGA, ON, Jan. 28, 2013 /CNW/ - Covalon Technologies Ltd. (the
"Company" or "Covalon") (TSXV: COV), an advanced medical technologies
company, today announced financial results for its year ended September
30, 2012. Revenue for the year was $3,793,451. Revenue was up 47% year
over year as a result of the changeover from the old exclusive wound
care distribution arrangement to the new path the Company has chosen
which is resulting in new agreements.
Annual operating expenses were $5,132,582 compared to $4,743,770 in the
previous year. During the year, the Company had two new products
cleared by the United States FDA - IV Clear and SurgiClear - which
resulted in a significant investment in sales and marketing expenses to
launch the products. In the previous fiscal year, the Company invested
in research and development for outside testing to provide data for FDA
and other regulatory filings for the two new products.
Net loss was $3,991,382 or $0.05 per share compared to $3,561,941 or
$0.05 per share in the previous year. Covalon consumed significant cash
reserves during the year in funding the development and launch of IV
Clear and SurgiClear. The Company anticipates reduced operating
expenses going forward.
The Company also announced today the resignation of Mr. William Jackson
as a Director of the Company. "On behalf of Management and the Board
of Directors, I would like to thank William for his contributions to
Covalon over the past many years," stated Mr. Abe Schwartz, Chairman of
the Board of Directors.
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 our website at www.covalon.com
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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.
SOURCE Covalon Technologies Ltd.