- Salona Global Medical Device Corporation (SGMD) has acquired DaMar Plastics
- This addition to Salona Global is projected to add $6.6 million of revenue annually with gross profit margins of approximately 45 per cent
- The company is also pursuing its planned large-potential acquisition in the orthopedic and sports medicine market, with $26 million in estimated annual revenue
- Salona Global Medical Device Corp is a US-based, acquisition-focused medical device company
- Salona Global Medical Device Corporation opened trading at C$0.61 per share
Salona Global Medical Device Corporation (SGMD) has closed its previously announced acquisition of DaMar Plastics, a plastics manufacturing business.
This addition to Salona Global is projected to add $6.6 million of revenue annually with gross profit margins of approximately 45 per cent.
The acquisition builds upon the company’s strategy to create a fully integrated global medical device company and adds precision plastics technology capabilities to the company.
The company also provided an update on the progress of the previously announced large potential acquisition candidate.
Salona Global is conducting diligence and negotiating a binding purchase agreement. It is also negotiating post-acquisition service contracts in order to assure a smooth transition.
The large potential acquisition is in the orthopedic and sports medicine market, with $26 million in estimated annual revenue and gross profit margins of approximately 30 per cent, as previously announced by the company.
If the second acquisition closes, both acquisitions are expected to grow SGMD’s annual revenue run rate by nearly 80 per cent.
Furthermore, the company announced highlights of its second quarter, ending August 30, 2022.
The company is actively negotiating additional alternative debt structures with parties in the US and Canada to optimize the capital structure of the deal for shareholders.
It has also increased staff and implemented plans to scale back-office systems to integrate the acquisitions, including accounting and IT.
Finally, Luke Faulstick has been appointed as an Executive Director to the company’s Board of Directors.
“We had an incredibly productive quarter as we prepare to add significant revenues to our already fast-growing business,” said Salona Global’s Executive Chairman Les Cross.
“Our team has significant experience in acquiring and integrating companies, and we are pleased to take the next step in growth with these planned acquisitions,” he added.
Salona Global Medical Device Corp is a US-based, acquisition-focused medical device company.
Salona Global Medical Device Corporation opened trading at C$0.61 per share.