SHIRLEY, N.Y., Feb. 10, 2025 (GLOBE NEWSWIRE) -- Evome Medical Technologies Inc. (the “Company”) (TSXV: EVMT) has announced a significant reduction in its overall debt, strengthening its financial position, as a result of the execution of an amendment (the “Amendment”) to the forbearance agreement dated August 4, 2023 between the Company, Biodex Rehab Systems, LLC (“Biodex Rehab”), a wholly owned subsidiary of the Company, and Biodex Medical Systems, Inc. (“Biodex Medical”), a wholly owned subsidiary of Biodex Rehab, and Mirion Technologies (US), Inc. (“Mirion”).
The Amendment significantly improves the Company’s financial position by reducing its outstanding debt to Mirion and extending repayment terms, while maintaining the Company’s commitment to manufacture Mirion’s products under the existing contract manufacturing agreement (the “CMA”) dated April 3, 2023 between Biodex Medical Systems, Inc. and Mirion Technologies (Capintec), Inc., an affiliate to Mirion.
Pursuant to the Amendment, Biodex Rehab’s outstanding debt to Mirion has been reduced from $6.7 million due in July 2025 to $4.25 million due in April 2030 - a $2.45 million reduction in debt and a repayment extension of four years and nine months. In exchange, Biodex Medical has committed to producing and delivering a guaranteed quantity of Mirion's products under the current CMA until March 2026 or sooner if Mirion is successful in transitioning the CMA to a new manufacturer.
Additionally, Mirion has agreed to remove restrictions imposed on the Company to use certain amounts of financing proceeds to repay debt to Mirion, providing the Company with greater financial flexibility to raise capital and execute its growth plans. Mirion has also relaxed certain restrictions on the Company’s merger and acquisition (M&A) activity, allowing the Company to explore strategic opportunities more freely.
Strategic and Financial Benefits for Evome
The Amendment marks a major milestone in the Company’s ongoing restructuring strategy. By reducing debt at both the parent company and subsidiary levels, the Company strengthens its balance sheet and enhances its debt-to-equity ratio, improving overall financial stability. Through the Amendment, the Company also gains the flexibility to raise capital and focus on high-margin business lines.
In addition, the Amendment also underscores the continued progress for the Company under CEO Michael Seckler, who has now successfully reduced total debt by $5.5 million since assuming the leadership role in July 2023.
“This agreement strengthens our financial position and ensures we have the flexibility and resources to drive growth,” said Michael Seckler, CEO of the Company. “By reducing our debt burden, optimizing our assets, and securing capital-raising freedom, we are in a much stronger position to expand our product offerings, invest in innovation, and execute on our long-term vision. Evome remains committed to delivering high-quality products and advancing its strategic goals while continuing to build shareholder value and strengthen its financial foundation.”
About Evome Medical Technologies Inc.
Evome, through its operating subsidiaries, specializes in human performance and rehabilitative solutions achieved through strategic acquisitions and leveraging the intellectual properties of specialized companies. Evome’s goal is to create a large, broad-based medical device company with global reach. For more information visit www.evomemedical.com. Biodex® boasts innovative rehabilitation solutions, recognized for its advanced product line serving orthopedic, sports medicine and neurorehabilitation needs. Renowned for its precision and durability, Biodex® offers advanced equipment such as balance and mobility systems, isokinetic testing devices and comprehensive upper extremity rehabilitation tools. With a presence in over 70 countries and partnerships with 52 distributors, Biodex® continues to drive advancements in patient care through a strong commitment to research, education and technology integration.
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.
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", "would", "could", "should", "potential", "will", "seek", "intend", "plan", and "anticipate", and similar expressions as they relate to the Company. All statements other than statements of historical fact may be forward-looking information. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. The Company cautions that the forward-looking statements contained herein are qualified by important factors that could cause actual results to differ materially from those reflected by such statements. Such factors include but are not limited to the general business and economic conditions in the regions in which the Company operates; the ability of the Company to execute on key priorities, including the successful completion of acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; difficulty integrating newly acquired businesses; ongoing or new disruptions in the supply chain, the extent and scope of such supply chain disruptions, and the timing or extent of the resolution or improvement of such disruptions; the ability to implement business strategies and pursue business opportunities; disruptions in or attacks (including cyber-attacks) on the Company’s information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud or other criminal behavior to which the Company is exposed; the failure of third parties to comply with their obligations to the Company or its affiliates; the impact of new and changes to, or application of, current laws and regulations; granting of permits and licenses in a highly regulated business; the overall difficult litigation environment, including in the United States; increased competition; changes in foreign currency rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the availability of funds and resources to pursue operations; critical accounting estimates and changes to accounting standards, policies, and methods used by the Company; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; as well as those risk factors discussed or referred to in the Company’s disclosure documents filed with the securities regulatory authorities in certain provinces of Canada and available at www.sedarplus.com. Should any factor affect the Company in an unexpected manner, or should assumptions underlying the forward-looking information prove incorrect, the actual results or events may differ materially from the results or events predicted. Any such forward-looking information is expressly qualified in its entirety by this cautionary statement. Moreover, the Company does not assume responsibility for the accuracy or completeness of such forward-looking information. The forward-looking information included in this press release is made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law.
