Overview

• Covalon is a researcher, developer, manufacturer, and marketer of patent-protected medical products specializing in advanced wound care
• Covalon initiated a Strategic Review process to explore and evaluate strategic alternatives available to enhance shareholder value
• Depressed share price, limited liquidity, and financial issues motivated the process, but also made it more challenging

MPA’s Role and Key Considerations

• MPA was the financial advisor to Covalon’s special committee in its strategic alternatives review process
• MPA conducted an in-depth review of numerous transaction alternatives and analysis of which alternatives maximized Covalon’s objectives
  • Completed a full two-stage sales process for all or parts of the company:
  • Prepared all marketing materials such as teaser, CIM, management presentations 
  • Developed a full financial model as a guide to evaluate proposals
  • Managed and populated the data room for purchasers
  • Lead negotiations with buyers
• Multiple permutations required significant ongoing support from MPA

Outcome

• Divestiture of a non-core asset for a value in excess of the company’s market cap
  • US$30M sale price, realizing a net gain of $C24M over the 2018 acquisition price
• AquaGuard was sold to TIDI Producers, a private equity backed strategic
• Review process has culminated in Covalon’s share price more than doubling