Business
Covalon Proposes Share Consolidation
MISSISSAUGA, ON, May 16, 2013 /CNW/ - Covalon Technologies Ltd. (the "Company") (TSXV: COV)...
About this update from Covalon Technologies Ltd.
[{"type":"text","content":"\n\n\n\n\n\nMISSISSAUGA, ON, May 16, 2013 /CNW/ - Covalon Technologies Ltd. (the\n \"Company\") (TSXV: COV), an advanced medical technologies company, today\n announced the proposed consolidation of its issued and outstanding\n common shares (\"Shares\") on a basis of 10 pre-consolidated Shares for\n each post-consolidation Share, subject to shareholder approval and TSX\n Venture Exchange approval. The proposed consolidation is to be put\n before shareholders at the Company's Annual and Special Meeting of\n shareholders to be held on June 13, 2013.  The Company will not be\n changing its name in connection with the consolidation.\n\n\nCurrently, a total of 92,761,708 Shares are issued and outstanding.\n Accordingly, if the consolidation is put into effect, a total of\n 9,276,171 Shares would be issued and outstanding following the\n consolidation, before taking into account cancellation of any\n fractional shares and assuming there are no other changes in the issued\n capital of the Company.  The change in the number of Shares that will\n result from the consolidation will cause no change in the capital\n attributable to the Shares and will not materially affect any\n shareholder's percentage ownership in the Company, even though such\n ownership will be represented by a smaller number of Shares.\n\n\nBoth management and the board of directors believe that the Company is\n at a critical stage in its growth and that its inability to finance or\n attract new investors is hampering the Company from taking advantage of\n a number of opportunities available in the current market. Management\n and the board believe that if the consolidation is approved and\n effected, the Company will benefit from greater investor interest,\n improved trading liquidity, and an ability to raise additional capital\n to finance its current business activities at a higher price per Share.\n The proposed consolidation of its share capital will also better\n position the Company to pursue other business prospects.\n\n\nAbout Covalon\n\n\nCovalon Technologies Ltd. researches, develops and commercializes new\n healthcare technologies that help save lives around the world.\n Covalon's patented technologies, products and services address the\n advanced healthcare needs of medical device companies, healthcare\n providers and individual consumers. Coval...