Salona Global Strategy

Capital Markets Plan

Awaiting listing on the TSX Venture Exchange. The listing on the TSX-V is designed to provide superior liquidity for acquired companies' shareholders

Listing currently halted pending completion of proposed acquisition of South Dakota Partners Inc. (“SDP”). See News Release dated September 10, 2020 for details.

Ultimate goal to list on a US capital market upon the completion of several acquisitions generating significant revenues and a diverse array of medical device products.

Revenue Growth Strategy

A. Leverage the liquid TSXV listing and cash on the balance sheet to acquire private medical device companies.

Target Rich Environment: There are thousands of small, private IP-driven medical device companies operating in the US. Over 5500 companies with medical device FDA approval in the last 5 years

Accretive: Most are under-capitalized and illiquid and can be acquired at favorable (private value) multiples

B. Execute a post-acquisition organic growth plan.

International Expansion: Leveraging management’s existing and robust sales distribution networks in Europe and Australia to increase sales for each acquired IP-driven product.

Increase Product Lines: Acquiring new IP protected devices synergistic with the acquisitions.

Increase Profits: Operational integration reducing supply chain risks and increasing cash flow and margin.

C. Integration

Streamlining: Upon successfully relisting and closing the acquisition, Salona looks to leverage SDP's large state-of-the-art facility (operating at only 50% capacity) in South Dakota currently producing proprietary and white label medical devices for pain management, cold and hot therapy, NMES, PEMF and ultrasound


Targeted Result

The combination of the capital markets plan and the revenue growth strategy is meant to yield earning per share (EPS) growth with each acquisition, as well as multiple expansion as revenues and profit grow post acquisition

 

Investor Information

 

Board of Directors

Chairman of the Board
Interim-CEO
Les Cross

Former CEO & Chairman, DJO Global (NYSE:DJO)
Former CEO & Chairman, Alphatec Spine (NASDAQ:ATEC)

Les Cross focused on acquisition and integration as a means of strategic growth during his tenure as CEO of DJO Global, resulting in significant returns and a lucrative private equity exit to Blackstone. His extensive US capital market and medical device company acquisition experience will be the driving energy behind the acquisition of companies in the pipeline.

He led the IPO of DJO Global, raising $150 million and the sale of DJO Global to Blackstone for $1.6 billion

Vice-Chair of the Board
Chair of the Audit Committee
Jane Kiernan

Former CEO, Salter Labs
Former Chair of the Audit Committee and Director, American Medical Systems (NASDAQ:AMMD);

Jane Kiernan is an expert in healthcare management, growth, and corporate oversight. Her experience in the sale of American Medical Systems have given her substantial buy and sell side experience and familiarity with the current opportunities in the medical healthcare space.

Non-Executive Director
Ken Kashkin, MD

COO of Chromocell Corporation
Former CMO, Ferring Pharma (Valued at over $1B)
Former Sen. Executive at Abbot Laboratories (NYSE:ABT) 
Former Vice President at Baxter (NYSE: BAX)
Former Professor, Yale University Medical School

Dr. Ken Kashkin brings over 30 years of experience in medical devices, research and development, and corporate governance to the board. An expert physician, Dr. Kashkin serves as a technical medical expert on all transactions for the Company. Dr. Kashkin received his undergraduate and medical degrees from University of California, Los Angeles and completed his education at the Yale University School of Medicine.

Non-Executive Director
Kyle Wilks

Former Senior Manager at Baxter (NYSE: BAX)

Former Senior Manager at Shire (NASDAQ: SHPG)

Former Executive Director, Montgomery Pacific Group

Former U.S. Naval Officer

Kyle Wilks graduated from the US Naval Academy at Annapolis. After his time as a Naval Officer, he worked at Montgomery Pacific Group, a mid market healthcare private equity group as an Executive Director managing portfolio companies. A former senior manager at Baxter in the rare immune deficiency therapies division, and Shire in the rare disease division, he was later a professor of Leadership at the US Naval Academy. He has substantial expertise in finance, leadership and management; medical device and biologics manufacturing and global healthcare market strategy.

 

Advisors

Salona's board and management team brings decades of combined experience in medical device M&A and operational integration. Management's deep industry connections have created a deep and robust pipeline of potential acquisition targets.

The Company has retained Jeff Schumacher (Kellogg School of Management, MBA; Harvard Law School, JD) at Reed Smith LLP as lead acquisition counsel and Michael Dalsin (Former Chairman of PHM) and Roger Greene (Former Vice Chairman of PHM, Harvard Law School, JD) as industry advisors.

In addition to the board and advisor driven pipeline, the internal M&A team in the California corporate office systematically searches for potential acquisition targets globally. The internal acquisition team is structured around the key metrics and infrastructure that drove both DJO Global and PHM to success. Using a well-honed 12 point process, our internal M&A team has developed and continues to develop a deep pipeline of acquisition targets.

Stock Market Quotes
 

Market Metrics

 

Disclaimers

Completion of the acquisition (the "Transaction") of South Dakota Partners Inc ("SDP") is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable, disinterested shareholder approval. Where applicable, the Transaction cannot close until the required shareholder approval is obtained.


There can be no assurance that the Transaction will be completed as proposed or at all. Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.


The TSXV has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this website.


The certain financial data contained herein is unaudited and may be subject to refinement or modification during the audit process. Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the Transaction, any information release or received with respect to the Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of the Company should be considered highly speculative.


Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.


The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any securities. Any public offering of securities in the United States must be made by means of a prospectus containing detailed information about the company and management, as well as financial statements.


Unless otherwise specified, all dollar amounts in this press release are expressed in Canadian dollars.


Forward-Looking Information


Although the Company believes, in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on them because the Company can give no assurance that they will prove to be correct. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include: information relating to the business plans of the Company and South Dakota Partners Inc. ("SDP"); the Transaction (including receipt of TSXV approval, and the closing of the Transaction and timing thereof); the business to be conducted by the Company upon completion of the Transaction;;; the Company’s expected acquisition pipeline; the Company’s intention to expand product sales to Europe and Australia;; the Company’s intention to become a supplier, manufacturer and developer of medical devices and associated technology;  the Company’s intention to list on the US capital markets after building revenues through acquisitions and organic growth; and the Company’s post-acquisition organic growth strategy to increase revenue and profits and therefore earnings per share (EPS) and the manner in which the Company proposes to accomplish it. Such statements and information reflect the current view of the Company and SDP, respectively. Risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: (i) there is no assurance that the Company and SDP will obtain all requisite approvals for the Transaction, including the approval of the TSXV for the Transaction (which may be conditional upon amendments to the terms of the Transaction); (ii) there is no assurance that the Concurrent Financing will be completed as contemplated or at all; (iii) following completion of the Transaction, the  Company may require additional financing from time to time in order to continue its operations and financing may not be available when needed or on terms and conditions acceptable to the Company;(iv) new laws or regulations could adversely affect the Company’s business and results ‎of operations; and (v) the stock markets have experienced volatility that often has been unrelated to ‎the  performance ‎ of companies. These fluctuations may adversely affect the price of the Company’s securities, regardless of its operating performance. There are a number of important factors that could cause the Company’s and SDP’s actual results to differ materially from those indicated  or implied by forward-looking statements and information. Such factors include, among others: currency fluctuations; disruptions or changes in the credit or security markets; results of operation activities and development of projects; project cost overruns or unanticipated costs and expenses, and general market and industry conditions and risks related to COVID-19 including various recommendations, orders and measures of governmental authorities to try to limit the pandemic, including travel restrictions, border closures, non-essential business  closures, quarantines, self-isolations, shelters-in-place and social distancing, disruptions to markets, economic activity, financing, supply chains and sales channels, and a deterioration of general economic conditions including a possible national or global recession. The terms and conditions of the Transaction may be based on the Company’s due diligence and the receipt of tax, corporate and securities law advice for both the Company and SDP. The Company undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Company, SDP, their securities, or their respective financial or operating results (as applicable). The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The forward-looking information contained in this press release represents the expectations of the Company as of the date of this press release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. The Company does not undertake to update this information at any particular time except as required in accordance with applicable laws.

 

*All information subject to exchange approval, closing, and other factors. All information is subject to exchange and regulatory approvals.
©2020 by Salona Global.