Covalon Technologies Ltd.
TSX VENTURE : COV

Covalon Technologies Ltd.

September 27, 2007 14:49 ET

Covalon Receives $11,642,110 From Exercise of Warrants

MISSISSAUGA, ONTARIO--(Marketwire - Sept. 27, 2007) -

THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Covalon Technologies Ltd. (the "Corporation" or "Covalon") (TSX VENTURE:COV) announces that it received total cash proceeds of $11,642,110 from the exercise of share purchase warrants.

"We view the exercise of these warrants as a strong vote of confidence in the Company's recent worldwide distribution agreement with Smith and Nephew and excellent prospects for growth. With this funding Covalon has in excess of $16 million in liquid assets and is at a major inflection point for growth" said Dr. DiCosmo, President and CEO.

Warrants to acquire a total of 15,888,056 common shares were exercised. The warrants were originally issued in conjunction with a "Brokered Private Placement" financing on March 22, 2006. 100% of the warrants were exercised prior to their expiry on September 22, 2007.

Covalon currently has 72,712,034 common shares and 3,789,388 incentive stock options outstanding.

Covalon Technologies Ltd. is a company with advanced medical products that has developed and patented advanced therapeutic biomaterials for wound care and surgical applications and coatings. Polymer chemistry and surface coating technology have been combined to create a range of time-release drug delivery platforms that are applied to many medical devices to treat many critical conditions. A variety of applications for these technologies have been identified and specific products have been developed. The products offer features and benefits providing solutions to many of the problems caused by current devices and their material properties which are used by most medical device manufacturers and suppliers. The problems include infection, poor biocompatibility, and microbial attachment.

This document contains forward-looking statements. These statements relate to future events or future performance. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative of any of these terms or comparable terminology. Such statements reflect the current views of management of the Company with respect to future events. Actual events or results may differ materially. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.

Contact Information

  • Covalon Technologies Ltd.
    William Jackson
    CFO & COO
    (905) 568-8400
    (905) 568-5200 (FAX)
    Website: www.covalon.com