ASSET PURCHASE AGREEMENTAsset Purchase Agreement • December 5th, 2022 • Salona Global Medical Device Corp • Surgical & medical instruments & apparatus
This Asset Purchase Agreement (this "Agreement"), dated as of November __, 2022, is made and entered into by and between Biodex Medical Systems, Inc., a New York corporation ("Seller"), Salona Global Medical Device Corporation, a corporation incorporated under the laws of the Province of British Columbia ("Parent") and Salona Bio Acquisition, LLC, a Delaware limited liability company, a wholly-owned subsidiary of Parent ("Buyer", and together with Parent, the "Buyer Parties")). Throughout this Agreement, Seller and Buyer Parties may be referred to individually as a "Party" and collectively as the "Parties." Capitalized terms used in this Agreement have the meanings given to such terms herein, and such definitions are identified by the cross-references set forth in Exhibit A attached hereto.
Salona Global Executes Binding Agreement to Acquire the Physical Medicine Assets of Biodex Medical Systems, Inc.Asset Purchase Agreement • December 5th, 2022 • Salona Global Medical Device Corp • Surgical & medical instruments & apparatus
SAN DIEGO, November 29, 2022 - Salona Global Medical Device Corporation ("Salona Global," "SGMD," or the "Company") (TSXV:SGMD) has executed a definitive asset purchase agreement (the "Asset Purchase Agreement") to acquire the physical medicine assets (the "Acquired Assets") of Biodex Medical Systems, Inc. ("Biodex"). As part of the acquisition, at the closing the parties will execute a two-year contract manufacturing agreement (the "Supply Agreement") with Biodex, which together with the Acquired Assets are expected to generate $26 million annually. The trailing 12-month revenues for the Acquired Assets were $18 million with gross margins of approximately 30%. The Supply Agreement is expected to generate 15% gross margins. Between cash, assets on the balance sheet and its existing debt facility the Company has sufficient funds to close the acquisition.
