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New Covalon CEO Provides Shareholder Update and Releases Second Quarter Results

^{Published on 2010-05-27 15:10:24 - Market Wire}
 

 - "Covalon has an excellent scientific team who are committed to the success of the Company. - I am very pleased with the strength and breadth of Covalon's technology, especially in advanced wound care and specialized medical device coatings. - We are actively pursuing new business opportunities with both existing and new clients and are hopeful that some announcements will be made in the near future. - Over the past few quarters, we have been able to reduce operating expenses and the Company's cash burn rate. - I am absolutely focused on doing everything we can to become cash flow positive and profitable as quickly as possible. - We have a relatively strong balance sheet with almost five and a half million dollars in cash, cash equivalents and short-term investments and no debt. - We are accelerating the process of transitioning from solely a research lab to a successful commercial technology business creating value from its current portfolio of patents and intellectual property. - To that end, Covalon will no longer continue to independently fund major, early-stage genetic stem cell research projects like our EPAS1 project without first seeking financial and/or industry partners. - While the Company assesses the most recent experiment which did not demonstrate that EPAS1-modified allogeneic (non-donor specific) stem cells improved both perfusion (volume of blood flow) and cardiac function better than either un-modified allogeneic stem cells or no stem cells, the Company has recorded a $1,700,350 non-cash charge in the income statement for the deferred development cost asset associated with EPAS1 research."