Salona Global Medical Device Corp. Announces Acquisition of Simbex, a Multi-Product, IP-Driven Medical Device Company
SAN DIEGO, CALIFORNIA – September 29, 2021 – Salona Global Medical Device Corporation (TSXV:SGMD) announced today that it has acquired Simbex, LLC , an IP-based business that has a portfolio of several revenue and royalty generating products ranging from wearable technology to products for fall prevention and mobility as well as expertise in development and design of many medical devices on the market it has innovated over the past several years.
The SGMD Business Plan is to acquire businesses in the recovery medicine market and strengthen into a fully integrated medical device company. SGMD resumed trading on June 9, 2021 with a plan to execute several acquisitions, building revenue and cash flow:
- The first acquisition was SDP, a FDA-approved hi-tech and robotics facility producing recovery
medicine products. SDP, located in the low cost state of South Dakota in the U.S., has expertise in cost
effectively producing high quality devices that meet FDA standards.
- With SGMD’s second acquisition, Simbex, the Company anticipates leveraging the SDP facility as SDP
and Simbex look to work together to reformulate IP for the recovery medicine market.
- SGMD’s strategy behind its third potential acquisition, currently in the non-binding LOI stage
announced July 20, 2021, is to acquire direct distribution to sell these potential reformulated
products into that sales channel.
- Additionally, SGMD is focused on a European sales channel the Company plans to develop, either
through acquisition or organically or both.
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. “Our public listing took much longer than expected with the steps needed to finalize a second acquisition. But we seem to have been able to clear the needed approvals and I expect our next acquisition to move quickly now, as well as other potential acquisitions in our pipeline.”
“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.
For more information please contact:
Chairman of the Board and Interim Chief Executive Officer
Tel: 1 (800) 760-6826