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Covalon Technologies Ltd.: Covalon Releases Second Quarter 2009 Financial Results

^{Published on 2009-05-28 08:27:19, Last Modified on 2009-05-28 08:28:21 - Market Wire}
 

MISSISSAUGA, ONTARIO--(Marketwire - May 28, 2009) - Covalon Technologies Ltd. (the "Company" or "Covalon") (TSX VENTURE:COV) announces the release of its financial statements for the second quarter of fiscal 2009 ending March 31, 2009. Total revenues for the three months ending March 31, 2009 were $781,433, an increase of $126,808 over the same period of the previous year. Total revenues for the six months ending March 31, 2009 were $1,243,600 compared to $1,585,519 in the same period of the previous year. Net loss for the six months ending March 31, 2009 was $2.8 million and net cash outflows for the same period were $3.6 million. At March 31, 2009, the Company had $9.0 million in cash and cash equivalents available for use.

Mr. Peter Hobbes, Covalon's Chief Financial Officer noted, "I am quite pleased with the steps that Covalon is taking to reduce expenses, preserve cash and improve sales. I am encouraged by the focused efforts of management and staff to improve our performance."

Dr. Frank DiCosmo, Covalon Co-Founder, President and Chief Executive Officer stated, "Covalon's exceptional team of world-class medical researchers and scientists are extremely busy working on a number of existing projects and new sales initiatives. I am optimistic that our shareholders' patience will be rewarded in due course and that our sales activities led by Covalon Co-Founder and Chief Business Officer, William Jackson, will result in new customer contracts."

The Company's consolidated financial statements and Management Discussion and Analysis (MD&A) for the three and six month periods ending March 31, 2009 are available on SEDAR at [ www.sedar.com ] and on the Company's website at [ www.covalon.com ].

About Covalon Technologies Ltd.

Covalon Technologies Ltd. is an advanced medical products company that researches, develops, patents and commercializes advanced medical technologies including collagen wound care dressings, specialized medical device coatings and genetic tissue regeneration therapies. These technologies can treat many critical conditions, improve patient outcomes and save lives. Covalon's technologies are generally licensed to other medical companies and distributors who incorporate them into their own product offerings and then sell them directly to hospitals, clinics and doctors.

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. The Company assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.

Neither 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.