- Salona Global Medical Device Corporation (SGMD) has announced that the non-arm’s length parties of Salona Global have been awarded their full equity earn-out
- The non-arm’s length parties of Salona Global are Les Cross, Executive Chairman; and Luke Faulstick, Chief Executive Officer of SGMD, through GAP Partners, Inc
- The non-arm’s length parties were awarded their full equity earn-out because the company exceeded all revenue and cash flow targets for the 12-month period
- Salona Global Medical Device Corp is a US-based, acquisition-focused medical device company
- Salona Global Medical Device Corporation opened trading to $0.77
Salona Global Medical Device Corporation (SGMD) has announced that the non-arm’s length parties of Salona Global have been awarded their full equity earn-out.
The non-arm’s length parties of Salona Global are Les Cross, Executive Chairman, and Luke Faulstick, Chief Executive Officer of SGMD, through GAP Partners, Inc., an entity Mr. Faulstick has a 50-per-cent interest in, that were shareholders of South Dakota Partners, Inc. (SDP).
The non-arm’s length parties were awarded their full equity earn-out as a result of the company exceeding all revenue and cash flow targets for the 12-month period from June 1, 2021 to May 31, 2022.
Salona Global had announced in April that it expected the full SDP earn-out would be achieved based upon recent revenue and margin growth.
During the 12-month measurement period SDP exceeded both of its required targets of US$11,900,000 in revenues and US$2,800,000 in adjusted net assets.
As a result, Les Cross and GAP Partners, Inc. will have the right over the next five years to exchange their minority U.S. subsidiary shares into an aggregate of 12,323,890 non-voting Class A shares of SGMD.
These Class A shares can be converted to SGMD common shares at the option of the holder, allowing for a maximum conversion of 362,000 common shares of SGMD by a holder at any one time.
Led by Luke Faulstick, Salona Global’s CEO and former COO of DJ Global, SDP has had a foundational role in creating the fully-integrated medical device company that is now Salona Global.
SDP’s low-cost FDA-approved robotics facility in South Dakota provides a platform for growth.
“My former SDP shareholders and I are happy to become long-term shareholders of Salona Global,” stated Luke Faulstick, CEO of Salona Global and President of SDP.
“We look forward to the coming years where we aim to recreate our success in this industry and grow this business to a much larger scale,” he added.
Salona Global Medical Device Corp is a US-based, acquisition-focused medical device company.
Salona Global Medical Device Corporation opened trading to $0.77.
