- Salona Global Medical Device (TSXV:SGMD) has announced it has secured its first European sales contract in Spain
- The order, which was placed with SDP, the company’s first acquisition, is anticipated to ship before the end of the company’s fiscal second-quarter
- Included in the order are specialized drug delivery products worth $193,00 with 35 per cent margins
- The company’s expansion globally is a part of its organic growth strategy
- Due to SGMD’s expanding pipeline for potential future acquisitions, its management team has launched a European sales and marketing division
- Shares of SGMD are down 8.63 per cent to C$1.27 as of 1:37 p.m. EDT
Salona Global Medical Device (SGMD) has announced it has notched its first European customer in Spain.
This contract is part of the company’s strategy to increase its revenue growth through acquisitions and to expand sales in Europe and other markets around the world.
The initial order, which was placed with SDP, the company’s first acquisition, is expected to ship to the customer before the end of fiscal Q2 2021.
Included in the order are specialized drug delivery electrode products worth C$193,000 with 35 per cent margins.
“It is good to see our growth plan in action. While this is just one product in one country, it is the first step in a plan where the execution path is familiar to me and my team,” Less Cross, chairman and interim CEO of SGMD, said in a release. ” We plan to complete more acquisitions, which will provide us more products and I am confident we can break into more EU countries.”
Global expansion post-acquisition is a key part of SGMD’s business plan. With a rapidly maturing pipeline of potential future acquisitions, the company’s management team has launched a European sales and marketing division, led by Stephen Murphy.
Murphy resides in the UK and is the former president of DJO Global’s international business where he worked for over 27 years and helped revenue grow from $20 million to over $300 million in 15 years.
Shares of SGMD are down 8.63 per cent to C$1.27 as of 1:37 p.m. EDT.
