MISSISSAUGA, Ontario, February 03, 2025--(BUSINESS WIRE)--Covalon Technologies Ltd. (the "Company" or "Covalon") (TSXV: COV; OTCQX: CVALF), an advanced medical technologies company, today released a statement on the tariffs announced by President Trump on Canadian imports.
While many elements to this rapidly-evolving situation are unclear and tariff implementation details are yet to be announced, the Company wishes to provide the following initial comments:
Covalon has manufacturing and commercial operations on both sides of the Canada – United States border. Depending on the specific regulations that will in due course be published, Covalon has the flexibility to adjust manufacturing processes and locations that could mitigate negative financial implications to the Company.
Almost all of Covalon’s revenues are in US Dollars, and the majority of its costs are in Canadian dollars. There has been, and will likely continue to be, foreign exchange benefit to the company. The current exchange rate of 1.45 in Canadian Dollars to the US Dollar compares with the exchange rate a year ago of 1.35.
The Company’s products have improved patients’ lives on Canadian soil and American soil, as well as in numerous other countries around the world. Every day, Covalon employees based in Canada and the United States work together seamlessly with one common purpose – improving patient outcomes through our innovative and compassionate medical products and technologies. Our customers, including nurses, doctors and infection preventionists working in hospitals and clinics in the United States, Canada and the rest of the world, have come to rely on Covalon as a trusted supplier of differentiated products to help them achieve the best clinical outcomes for their patients.
The company had a very successful 2024 fiscal year, capped by the recent announcement that Covalon was ranked as the top medical device company, and #4 overall on the OTCQX’s Best 50 Companies - an annual ranking of the top 50 U.S. and international companies traded on the OTCQX exchange, based on an equal weighting of one-year total return and average daily dollar volume growth in 2024. Covalon joined other notable high performers from the United States, Canada, the United Kingdom, Australia and Turkey.
Covalon is hoping for a quick and fair resolution to the current trade dispute. In parallel, we are also planning and executing to ensure a strong outcome for our key stakeholders – patients, customers, employees, business partners and shareholders.
Covalon is a leading MedTech company dedicated to improving patient outcomes through innovative and compassionate medical products and technologies. Our expertise spans advanced wound care, vascular access, and surgical consumables, with a strong focus on enhancing healing, reducing healthcare-associated infections (HAIs), and protecting skin integrity. Our solutions are designed for patients and made for care providers. The Company is listed on the TSX Venture Exchange (COV) and trades on the OTCQX Market (CVALF). To learn more about Covalon, visit our website at www.covalon.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain 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", or variations of such words and phrases or state that certain actions, events, or results "may", "could", "would", "might", "will" or "will be taken", "occur", or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates, and projections regarding future events. Forward-looking statements involve risks and uncertainties, including, but not limited to, the factors described in greater detail in the "Risks and Uncertainties" section of our management’s discussion and analysis of financial condition and results of operations for the year ended September 30, 2024, which is available on the Company’s profile at www.sedarplus.ca, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Investors should not place undue reliance on any forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release, and the Company assumes no obligation to update or alter any forward-looking statements, whether as a result of new information, further events, or otherwise, except as required by law.
