SAN DIEGO, June 01, 2022 (GLOBE NEWSWIRE) — Salona Global Medical Device Corporation (“SGMD”, “Salona Global” or the “Company” (TSXV: SGMD), a vertically integrated, acquisition-driven medical device company serving the global market for recovery from injury and surgery (known as recovery science), today announced the release of audited financial statements and highlighted progress made during its fiscal year ending February 28, 2022.
The company is also pleased to announce that it will host a conference call for Interim Chairman and CEO Les Cross on the one-year anniversary of listing: June 9.e2022, 5 p.m. EST.
Highlights of the exercise:
(from March 1, 2021 to February 28, 2022)
Salona Global Medical Device Corporation was listed (after trade change) on the TSX Venture Exchange on June 9, 2021, under the symbol SGMD. Since the IPO in June, Salona Global has achieved several strategic and financial milestones:
Revenues and profits:
- Revenue generated from $3,973,773 in the first reported quarter (ending August 30, 2021) to $8,461,354 (ending February 28, 2022) or a 113% increase since listing
- Built gross profits of $1,204,171 in the first reported quarter (ending August 30, 2022) to $2,888,285 (ending February 28, 2022) or a 140% increase since listing.
- Cash balance (end of year) of $8,057,100
SGMD 2021 (June-December):
- June: Listed with $5.55 million in concurrent financing and the initial acquisition of South Dakota Partners Inc. (“PDS”), an FDA-approved low-cost robotic production facility for retrieval medical devices.
- July: Increase in turnover with its first European order from a customer in Spain.
- September: Acquisition of Simbex, LLC (“Simbex”), an innovation-based company generating revenue and profit that becomes the basis of SGMD’s product development strategy.
- November: Added the acquisition of the Group Purchasing Organization (“GPO”) sales channel, adding an important sales channel for SDP and Simbex products.
SGMD 2022 (January-May):
- January: $4.26 million bought deal financing led by Beacon Securities Limited, with Canaccord Genuity Corp. and Leede Jones Gable Inc.
- February: Acquisition of Mio-Guard LLC (“Mio-Guard”), a sales leader in the professional and academic sports and training market.
- March: SDP instituted price increases of 11% to 27% on the majority of products
- April: acquisition of intellectual property and extension of the Mio-Guard product line with high-end electrodes; Hires former DJO sales manager.
- May: Signature of a K-laser distribution agreement adding a new line of high-margin IP-protected products to the sales mix.
Build a vertically integrated medical device business while growing revenue and gross profit every quarter:
- Operation of an FDA cleared production facility.
- Intellectual property focused R&D group generating revenue with products to market.
- Acquired multiple growing sales channels with GPO sales channel and Mio-Guard acquisitions.
- Made several key hires – including a proven Sales Manager and CFO with Canadian market experience.
- Negotiate with targets in a deep pipeline of potential acquisitions, IP licensing opportunities and distribution deals.
Management executed on a multi-pronged growth plan:
- Four (4) acquisitions
- Acquisition of the intellectual property of a major product
- Distribution agreement signed
- Five (5) products in development
- Internal sales team recruited
SGMD as a growth platform for the coming year:
- Proven track record of organic revenue growth with market pricing power.
- Proven track record of multiple acquisitions and successful integration.
- Operating cash flow used to fund product development and transactions.
- Seasoned team of executives with a successful track record and decades of industry experience.
- Extensive pipeline of acquisition targets, product intellectual property and distribution deals.
- Products under development are expected to hit the market in the current fiscal year, providing more opportunities for organic growth.
“It’s been a great performance year for us,” said Les Cross, president of Salona Global. “In the past year alone, we have achieved our goal of building a world-class, vertically integrated medical device company serving the recovery science market. We have also generated gross revenue and profit in this short period. I expect to find other opportunities as we continue to operate and grow in the recovery science market. »
“In particular, we have attracted a team of seasoned professionals, many of whom I have worked with or managed as former CEO of DJO Global. We have worked together in this market for decades in some cases and see the opportunity to recreate our past success with a leading global company in our market. We are well positioned to continue our rapid revenue and gross margin growth in the current fiscal year and beyond.
Thursday, June 9, 2022 at 5 p.m. (ET)Chairman Les Cross will hold a call (see details below) to discuss the results, including details on progress throughout the year as well as ongoing deal flow, updates on the product development and future growth plans.
Year-End February 28, 2022 Earnings Call Dial: +1 (866) 518-6930
Password : LIVING ROOM
The financial statements for the 12 months ended February 28, 2022 and February 29, 2021, together with the related MD&A (in the form of an Annual Report on Form 10-K) have been filed on SEDAR and with the United States Securities and Exchange Commission (the “SECOND“) on Tuesday, May 31, 2022, after market close.
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For more information please contact:
Chairman of the Board of Directors and Interim Chief Executive Officer
Tel: 1 (800) 760-6826
E-mail: [email protected]
There can be no assurance that an acquisition (including with targets Salona is currently negotiating with in its pipeline) will be completed or the timing of any acquisition. Completion of any transaction will be subject to applicable director, shareholder and regulatory approvals.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Unless otherwise indicated, all dollar amounts in this press release are expressed in Canadian dollars.
Certain statements contained in this press release constitute “forward-looking information” within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. These statements can be identified by the use of forward-looking terminology such as “expects”, “believes”, “estimates”, “may”, “should”, “could”, “should”, “potential”. , “will”, “seek”, “intend”, “plan” and “anticipate”, and similar expressions with respect to the Company, including: the Company carrying out additional acquisitions and the Company expecting to find additional opportunities while continuing to operate and grow in the recovery science market. All statements other than statements of historical fact may be forward-looking information. These statements reflect the Company’s current beliefs and intentions regarding future events, as well as current information available to the Company, and are subject to certain risks, uncertainties and assumptions. Salona cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected in such statements. These factors include, but are not limited to, general business and economic conditions in the regions in which Salona operates; Salona’s ability to execute key priorities, including successful acquisitions, business retention and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; the ability to implement business strategies and seize business opportunities; disruptions or attacks (including cyberattacks) on Salona’s information technology, Internet, network access, or other voice or data communication systems or services; the evolution of the different types of fraud or other criminal behavior to which Salona is exposed; failure by third parties to perform their obligations to Salona or its affiliates; the impact of new laws and regulations, changes or enforcement thereof; permitting and licensing in a highly regulated business; the generally difficult litigation environment, including in the United States; increased competition; changes in exchange rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to continue operations; critical accounting estimates and changes in accounting standards, policies, and methods used by Salona; the occurrence of catastrophic natural and unnatural events and losses resulting from such events; and risks related to COVID-19, including various recommendations, orders and measures by government authorities in an attempt to contain the pandemic, including travel restrictions, border closures, non-essential business closures, quarantines, self-isolation, shelter-in-place and social distancing, market disruptions, economic activity, financing, supply chains and sales channels, and a deterioration in general economic conditions, including a possible national or global recession; as well as the risk factors discussed or referred to in Salona’s disclosure documents filed with the United States Securities and Exchange Commission and available at www.sec.gov, and with securities regulatory authorities in certain provinces of Canada and available at www.sedar.com. If any factor affects Salona in an unexpected way, or if the assumptions underlying the forward-looking information prove incorrect, the actual results or events could differ materially from the results or events predicted. . Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Further, Salona assumes no responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in the Investor Call is made as of the date of the Investor Call and Salona undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. .