Salona Global Medical Device Corporation Begins Trading Today

SAN DIEGO, June 09, 2021 (GLOBE NEWSWIRE) — Salona World Medical Gadget Company (the “Firm”, “SGMD” or “Salona World”) (TSXV:SGMD) begins buying and selling on the TSX Enterprise Change at market open in the present day, June 9^th, 2021.

The Firm has posted its newest company presentation, together with a webcast led by Chairman & Interim CEO Les Cross, at www.salonaglobal.com/investors.

“We’re excited to start buying and selling in the present day,” shared Les Cross “We consider we’ve created an distinctive alternative right here. Many non-public corporations hoping to develop into a part of Salona World will probably be extra occupied with transactions as buying and selling commences. Now we have a sound steadiness sheet, deep connections within the business and a very good international development technique. We’re aiming to shut accretive acquisitions shortly in order that we are able to start to execute on our development plans.”

Salona World on graduation of buying and selling:

• Income: Salona World’s first acquisition (SDP), which has now closed, had $15.8M in 2019 audited annual income (Pre-COVID), producing optimistic operational money move.*
• Cap Desk and Concurrent Financing: SGMD has roughly 63.8 million shares (on {a partially} diluted foundation)** upon graduation of buying and selling, with over 30 million shares both restricted or held by administration or advisors.
  • Shares have been offered within the Firm’s December 2020 concurrent financing (post-consolidation) at as excessive as $0.85 per share.

• M&A Capability: Salona World has a deep and full pipeline of personal companies which might be discussing a possible acquisition by Salona World – all medical gadget corporations with between $5M – $20M in revenues with optimistic money move.
  • The Salona World group believes it has the capability to shut 1-2 acquisitions per quarter beginning Q2 2021.

• Robust Steadiness Sheet, No Mum or dad Debt: The Firm has an estimated $13M in web property, predominantly in money and money equivalents, with no mother or father debt. Administration has earmarked between $4-6M in money and 15-18M shares to shut potential acquisitions in negotiations this quarter.
  • Nearly all of consideration can be tied to efficiency over a future measurement interval and might be financed with debt, as precedence acquisition targets into consideration are money move optimistic and debt free.

• Skilled Wall Avenue Administration Crew: Les Cross (Chairman of the Board) the previous Chairman of DJO World (a medical gadget roll up that was listed on the NYSE till Blackstone purchased it for $2B); Jane Kiernan (Vice Chairwoman) the previous Chair of the Audit Committee for American Medical Programs (bought by Endo Prescription drugs for $3.5B).
  • M&A advisors from PHM (Now Viemed on the Nasdaq/TSX and Quipt on the Nasdaq/TSXV).

*For extra info on SDP and historic efficiency please see the Firm’s Administration Info Round dated 01/26/2021 obtainable on the Firm’s Sedar Profile at www.sedar.com.‎

The SGMD submit acquisition natural development plan:

European Gross sales Enlargement: SGMD is focusing on corporations which have high quality merchandise which have succeeded within the US medical gadget market, however have little or no income from Europe or different developed markets the place SGMD executives have a historical past of promoting success.

Leveraging the Operational Platform: The State-of-the-Artwork FDA permitted SDP facility, the constructing block of the SGMD plan, will probably be used to optimize manufacturing methods, management prices and supply provide chain assurances to US prospects who’re cautious of dangers from commerce tensions and poor-quality outsourced manufacturing strategies.
Any questions associated to the presentation and webcast, posted at www.salonaglobal.com/investors, or some other part of the investor info part of the web site, will be directed to info@salonaglobal.com.

Share Capital and Steadiness Sheet

*        The Firm accomplished a 7.37-for-10 share consolidation on 12/21/2020.
**     Doesn’t embody the 15-18 million shares (described above) earmarked for potential acquisitions (with between $5m and $20m in gross sales) in superior negotiations or shares issuable pursuant to choices, warrants and Class A shares.

Medical Gadget Market Overview

• Increasing Market Alternative: Growing older international populations coupled with accelerated healthcare analysis has created a novel and rising alternative for a world targeted healthcare firm. Small US corporations with excellent merchandise wish to faucet the worldwide market.
• Excessive Margin IP Pushed Companies Command Superior Multiples: IP-driven medical gadget corporations (the Salona World acquisition candidates) have sturdy margins. Consequently friends, listed under, commerce within the vary of 6-15 instances income on the Nasdaq.
• Additional info obtainable at www.salonaglobal.com/investors.

Supply: Yahoo Finance as of 6/7/21

“Now we have a really highly effective enterprise mannequin, the place we are able to leverage a number of benefits by advantage of our itemizing on the TSXV,” mentioned Les Cross, Chairman & interim CEO of Salona World. “First, now we have developed a deep pipeline of IP-driven medical gadget corporations with the potential to accumulate at enticing non-public firm multiples. We’re discussing constructions with a minority down fee in money and inventory with the rest of the consideration tied to efficiency, and due 12-24 months after shut. Upon finishing an acquisition, we’d endeavor to develop gross sales in Europe, Asia and Australia utilizing our long-term relationships with worldwide distributors we spent a long time cultivating at DJO World, the place I used to be Chairman & CEO. Downstream funds might be financed with debt by advantage of the money move from acquisition targets, lowering the necessity for fairness financings. Along with income development, we’d plan to combine these companies into our state-of-the-art FDA permitted facility to extend free money move over time.”

“This market is very fragmented and ripe for aggregation,” continued Mr. Cross. “With over 5,000 potential targets, we really feel assured we are able to shortly purchase, combine and develop the targets on our approach to a Nasdaq itemizing. Timing is all the time tough to foretell with sellers, however my expertise is that success in closing offers can speed up sellers’ appetites to shut shortly. We stay up for offering the market within the close to time period with updates as we purpose to swiftly enter into definitive agreements.”

For extra info please contact:

Les Cross
Chairman of the Board and Interim Chief Govt Officer
Tel: 1 (800) 760-6826
Electronic mail: Data@Salonaglobal.com

Extra Info

There will be no assurance that any of the potential acquisitions in superior negotiations will probably be accomplished as proposed or in any respect and no definitive agreements have been executed. Completion of any transaction will probably be topic to relevant administrators, shareholder and regulatory approvals.

Neither the TSXV nor its Regulation Companies Supplier (as that time period is outlined within the insurance policies of the TSXV) accepts accountability for the adequacy or accuracy of this launch.

Sure statements contained on this press launch represent “forward-looking info” as such time period is ‎‎‎‎‎outlined in relevant Canadian and United States securities laws. The phrases “could”, “would”, “may”, ‎‎”ought to”, “potential”, ‎‎‎‎‎”will”, “search”, “intend”, “plan”, “anticipate”, “consider”, “estimate”, “anticipate” and comparable ‎expressions as they relate ‎‎‎‎to the Firm, together with: info referring to the enterprise plans of the Firm; ‎statements relating to anticipated income and optimistic money of acquired corporations; the Firm’s acquisition technique; future ‎acquisitions and the construction and financing of such acquisitions; info with respect to future development and development ‎methods; the ‎Firm’s ‎natural development plan and technique and the way during which the ‎Firm proposes to perform it; anticipated developments within the Firm’s business; and the Firm’s intention ‎to record on Nasdaq; are supposed ‎to establish ‎forward-looking info. All ‎statements apart from ‎statements of ‎historic truth could also be forward-‎trying ‎info. Such statements mirror the ‎Firm’s present ‎views and ‎intentions with respect to future ‎occasions, and ‎present info obtainable to the ‎Firm, and are ‎topic to ‎sure dangers, uncertainties and ‎assumptions, together with: the Firm and a goal being happy with due diligence; the Firm efficiently negotiating and executing definitive agreements for an acquisition; closing circumstances being happy or waived; the Firm acquiring all requisite approvals for a transaction; and the Firm assembly the entire itemizing circumstances for a Nasdaq itemizing. Many elements ‎‎may ‎trigger the precise outcomes, efficiency or achievements which may be expressed or ‎‎implied by such forward-‎‎trying ‎info to differ from these described herein ought to a number of of those dangers ‎‎or uncertainties ‎‎materialize. ‎Examples of such threat elements embody, with out limitation: credit score; market (together with ‎‎fairness, commodity, ‎‎international ‎change and rate of interest); liquidity; operational (together with expertise and ‎‎infrastructure); ‎‎‎reputational; ‎insurance coverage; strategic; regulatory; authorized; environmental; capital adequacy; the ‎‎normal enterprise and ‎‎financial ‎circumstances within the areas in ‎which the Firm operates; the power of the ‎‎Firm to execute on key ‎‎priorities, ‎together with the profitable completion of acquisitions, enterprise ‎retention, and ‎‎strategic plans and to ‎‎appeal to, develop ‎and retain key executives; problem integrating newly acquired companies; ‎‎the power to ‎‎‎implement enterprise ‎methods and pursue enterprise alternatives; ‎‎disruptions in or ‎‎assaults (together with ‎cyber-attacks) on the Firm’s info ‎expertise, web, community ‎‎entry or different ‎‎voice or knowledge ‎communications methods or companies; the evolution of varied forms of fraud or different ‎‎‎prison ‎‎habits to which ‎the Firm is uncovered; the failure of third events to adjust to their obligations to ‎‎the ‎‎Firm or its ‎associates; the ‎influence of recent and adjustments to, or utility of, present legal guidelines and rules; ‎granting of permits and licenses in a extremely regulated enterprise; the ‎general tough ‎‎‎‎‎litigation surroundings, together with in america; elevated competitors; adjustments in international foreign money charges; ‎elevated ‎‎‎‎funding ‎prices and market volatility because of market illiquidity and competitors for funding; the ‎availability of funds ‎‎‎‎and assets to pursue operations; crucial ‎accounting estimates and adjustments to accounting ‎requirements, insurance policies, ‎‎‎‎and strategies utilized by the Firm; the incidence of pure and unnatural ‎catastrophic ‎occasions ‎and claims ‎‎‎‎ensuing from such occasions; and dangers associated to COVID-19 together with varied suggestions, ‎orders ‎and ‎‎‎measures ‎of governmental ‎authorities ‎to attempt to restrict the pandemic, together with journey restrictions, border ‎closures, ‎‎‎‎non-essential enterprise ‎closures, ‎quarantines, ‎self-isolations, shelters-in-place and social distancing, ‎disruptions ‎‎‎to ‎markets, financial ‎exercise, ‎financing, provide chains and gross sales channels, and a ‎deterioration of ‎normal ‎‎‎financial ‎circumstances ‎together with a ‎doable nationwide or international recession‎; in addition to these threat elements ‎mentioned or ‎‎‎referred to in ‎the Firm’s disclosure ‎paperwork filed with United States Securities and Change ‎Fee and obtainable at www.sec.gov, and with the securities regulatory authorities in sure provinces of ‎Canada and obtainable at www.sedar.com. Ought to any issue have an effect on the Firm in an surprising ‎‎‎method, or ‎ought to ‎assumptions ‎underlying the forward-looking info show incorrect, the precise outcomes or ‎‎‎occasions could ‎differ ‎materially ‎from the outcomes or occasions predicted. Any such forward-looking info is ‎‎‎expressly certified ‎in its ‎entirety by ‎this cautionary assertion. Furthermore, the Firm doesn’t assume ‎‎‎accountability for the ‎accuracy or ‎‎completeness of such forward-looking info. The forward-looking ‎‎‎info included on this ‎press launch ‎is ‎made as of the date of this press launch and the Firm undertakes ‎‎‎no obligation to publicly ‎replace or revise ‎any ‎forward-looking info, apart from as required by relevant ‎‎‎legislation.‎