Advanced medical technologies firm Covalon Technologies has completed the integration of AquaGuard into its operations.
AquaGuard, based in Seattle, Washington, was acquired by Covalon on 1 October, this year. AquaGuard’s specialized products provide patients with crucial moisture protection for wound, surgical, and vascular access sites throughout the body while showering, a key step in helping to reduce infections.
Covalon CEO Brian Pedlar said: “The speed with which we were able to successfully integrate the AquaGuard team with Covalon has exceeded my expectations. I am extremely excited that as a unified company, Covalon, along with our new AquaGuard sales force, is now able to sell a strong portfolio of infection management products such as IV Clear, MediClear PreOp, SurgiClear, and AquaGuard into an established client base of over 1,500 hospitals and clinics in the United States.
“I am more optimistic than ever that the synergies resulting from this successful integration are highly beneficial and accretive to Covalon. This is very good news for Covalon, especially when added to the other positive developments recently announced by Covalon, including:
Receiving a first payment of $3.5m under a new license agreement with a large global medical company for certain rights to use Covalon’s patented antimicrobial medical coating technology. The license agreement also includes an additional $5m in license fees payable to Covalon as certain technology development milestones are achieved, fees for Covalon’s technology development services and equipment, and ongoing royalties on worldwide product sales once regulatory clearance of the products is achieved;
Establishing a new $17m acquisition and operating banking facility with major international bank HSBC Bank Canada and Export Development Canada; and
Winning a series of highly-competitive contracts for Covalon products in the Middle East with an estimated sales value of $100m over a three-year period, which the Company has started to fulfil.
“The impact of these major positive achievements is truly transformative for Covalon by securing future revenue through contracts and license agreements, transforming our presence in the United States market and providing access to non-dilutive capital as we continue to work hard on other positive initiatives.”
As part of the purchase price of acquiring AquaGuard, Covalon issued a total of 178,028 shares of the Company’s stock upon closing of the acquisition.
Source: Company Press Release