Covalon Technologies and Perfusion Therapeutics sign Letter of Intent for Covalon to acquire cell engineering platform for angiogenesis and improved wound healing
July 12, 2006
Mississauga, Ontario – July 12, 2006: Covalon Technologies Ltd. (“Covalon”) (TSX VENTURE: COV) today announced that it has signed a non-binding Letter of Intent with Perfusion Therapeutics Inc. ("Perfusion") of Montreal to acquire Perfusion’s cell engineering platform for improving localized blood flow. The technology, previously a part of Angiogene’s intellectual property portfolio was assumed by Perfusion. Covalon intends to acquire the technology in exchange for 1,100,000 common shares in Covalon to be released upon the completion of various milestones. The Letter of Intent is subject to a number of conditions, including the execution of a definitive acquisition agreement and approval of the transaction by the TSXV.
“The technology fits precisely with Covalon’s long-term vision in wound healing, improving angiogenesis and tissue regeneration,” said Covalon CEO Dr. Frank DiCosmo.
The single biggest obstacle to improved tissue or wound healing is the lack of site-specific blood flow. Covalon's acquisition of the technology offers the potential of an evolutionary jump in its continued advancement of the most sophisticated biologically active wound care products. Covalon's current line-up includes FDA approved and proprietary products with antimicrobial silver technology (ColActive Ag) and inhibitors of matrix metalloproteases (Collagran). Intended advancements in the pipeline include wound dressings that improve localized blood vessel growth. Perfusion has developed Intellectual Property around EPAS1, a master regulatory gene which can stimulate production of factors like VEGF, which encourages blood vessel growth. Covalon also believes there will be significant opportunities for use of this technology in cardiac and orthopaedic applications.
Covalon Technologies Ltd. is a developer of advanced medical products which has patented therapeutic biomaterials for wound care and surgical applications and coatings for medical devices. 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. A variety of applications for this technology has been identified and specific products have been developed. These products feature solutions to many of the problems caused by the material properties of the medical devices currently offered by most manufacturers and suppliers.
This news release contains forward-looking statements which reflect the Company’s current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan, “estimate”, “expect”, “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting product approvals, acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, the regulatory environment, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors should consult the Company’s ongoing quarterly filings for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.
For further information please contact:
William Jackson, CFO & COO
Covalon Technologies Ltd.
T: (905) 568-8400
F: (905) 568-5200
www.covalon.com
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.
