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Covalon Chairman Announces Exercise of Warrants and Acquisition of Additional Shares and Warrants

V.COV

Covalon Chairman Announces Exercise of Warrants and Acquisition of Additional Shares and Warrants

Mr. Abe Schwartz and Covalon Technologies Ltd. ("Covalon") (TSXV:COV), an advanced medical technologies company, pursuant to National Instrument 62‐103, announce that Mr. Schwartz, who is Covalon’s Chairman and a Control Person under the TSX Venture Exchange rules, has acquired 775,000 common shares of Covalon pursuant to the exercise of 775,000 previously issued warrants, at an exercise price of $1.00 per warrant for aggregate proceeds to Covalon of $775,000.

Additionally, as part of Covalon’s previously announced private placement offering (the “Offering”) of units (“Units), Mr. Schwartz has acquired an additional 114,796 common shares of Covalon (approx. 0.54% of the presently issued and outstanding common shares) and 114,796 common share purchase warrants (the “Acquired Securities”). The Acquired Securities were purchased at a price of $1.96 per Unit for an aggregate purchase price of $225,000.

As of May 31, 2017, the date immediately prior to the closing of the Offering and the aforementioned exercise of warrants, Mr. Schwartz beneficially owned, controlled or directed 7,156,320 common shares of Covalon (approx. 36.94% of the then issued and outstanding common shares) and 775,000 common share purchase warrants.

As a result, Mr. Schwartz now collectively beneficially owns, controls or directs an aggregate of 8,046,116 common shares of Covalon (approx. 37.71% of the presently issued and outstanding common shares) and 114,796 common share purchase warrants.

The Acquired Securities were acquired for investment purposes and Mr. Schwartz may, directly or indirectly, acquire further securities of Covalon, or dispose of his holdings as investment conditions warrant.

A copy of the early warning report to be filed by Mr. Schwartz in connection with the transactions described herein will be available on Covalon’s SEDAR profile at www.sedar.com, and can also be obtained by contacting Brian Pedlar at 905.568.8400 ext. 233.

Covalon Technologies Ltd.
Brian Pedlar, 905-568-8400 x 233
CEO
bpedlar@covalon.com
Toll free: 1-877-711-6055
Web site: www.covalon.com
Twitter: @covalon



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