December 6, 2021 01:29 AM | Covington Associates
September 29, 2021 (Boston, MA) – Covington Associates, a leading middle market investment bank announced its role as exclusive financial advisor to Simbex, LLC, a Multi-Product, IP-Driven Medical Device Company, in the sale of its business to Salona Global Medical Device Corporation (TSXV:SGMD).
SGMD has plans to continue to build its pipeline for further potential acquisitions to build out both the intellectual property portfolio or the domestic and international sales channels. “We are excited that our second acquisition is in place,” said Les Cross, Chairman and interim CEO of SGMD.
“Simbex is promising because it develops IP and designs cutting edge medical devices in very specific, targeted markets,” continued Mr. Cross. “A significant revenue stream for them is from wearable technology in football helmets, deployed at all levels of play from youth to professionals, in the U.S. to monitor and educate players and coaches around concussion injuries. Simbex also continues to develop technology for clients not operating in our market. As Simbex generates revenue and cash flow by designing products and creating IP for its clients, it simultaneously gains the expertise applicable to specific medical device markets we intend to serve. One key aspect of this acquisition is the commercialized expertise or IP rights that Simbex retains for products in markets their clients do not address, specifically the global healthcare market for recovery medicine that we do target.”
“We are very excited to join the Salona Global Medical Device family”, said Rick Greenwald, co-Founder and CEO of Simbex, “and to add value for our product development partners and clients by expanding our technical capabilities, commercialization services and our global reach. The Simbex team has a long history of innovation and excellence in medical technology development and commercialization, including the medical recovery space, that can help drive growth for SGMD.
“With each accretive acquisition, we aim to increase EPS, and we are one step closer to becoming a world- class global medical device company,” concluded Mr. Cross. “We are planning to build a fully integrated company with a strategy of acquiring platform businesses that are already cash flow positive, and then improving our results through revenue enhancement and operational synergies. Our M&A team is working diligently so we can meet our goal of frequent and accretive deals and having navigated dual regulatory requirements, both in the U.S., where SGMD makes securities filings, and in Canada, we should now expect an uptick in the frequency of acquisitions.”
The Company has posted its latest corporate presentation, along with a webcast led by Chairman & interim CEO Les Cross, at www.salonaglobal.com/investors.
Covington Associates is an investment banking firm offering advisory services in the areas of mergers and acquisitions (“M&A”), capital raising and strategic advisory to middle-market companies across the Healthcare, Business Services, Consumer & Industrial, and Technology verticals. Founded in 1991 and based in Boston, the vision for Covington has been to provide clients with the highest caliber of senior-level attention and to remain an advice driven and results focused organization. Since its inception, Covington Associates has completed over 350 transactions globally for both private and publicly traded companies totaling over $20 billion. Further information can be found at http://www.covingtonassociates.com/overview/.
Simbex is an experienced medical device and consumer health product design and development partner that excels in transforming your most complex ideas into game-changing commercial solutions.
Salona Global Medical Device Corporation provides lending and credit to the healthcare industry in the United States. It intends to engage in the development, production, and supply of medical device products. The company was formerly known as Brattle Street Investment Corp. and changed its name to Salona Global Medical Device Corporation in December 2020. Salona Global Medical Device Corporation is based in Del Mar, California.
SIMBEX ACQUIRED BY SALONA GLOBAL