Salona Global Further Expands Product Line with Distribution Agreement with Hyperice; Secures Sales Order of Recently Acquired IP with the Mio-Guard Premium Electrode

·3 min read

SAN DIEGO, June 29, 2022 (GLOBE NEWSWIRE) -- Salona Global Medical Device Corporation (“Salona Global,” “SGMD,” or the ‎‎“Company”) (TSXV:SGMD) announced today it has expanded its product line with an agreement to distribute the Hyperice™ suite of products. Additionally, Salona Global also announced receipt of its first orders of 600 units for the recently launched Mio-Guard® premium reusable electrode based on the acquisition of intellectual property (“IP”) previously announced on April 14, 2022.

The Hyperice product line includes products that provide high frequency hand-held massage technology to relieve muscle pain, tension, and soreness from patients recovering from injuries. The Hyperice products add to Mio-Guard’s existing product line, further expanding the offerings to athletic trainers and physical therapy clinics that improve patient recovery outcomes, while also improving the financial performance of the clinic. SGMD is now offering over a dozen new Hyperice products ranging from $50 to $500 to its growing list of customers.

Salona Global also announced it has received the first sales orders for products generated from the IP portfolio acquisition announced in April and closed in late May. Upon acquiring the IP, the design of the new products was initiated, a production line was built, and the sales team secured its first sales order with delivery expected July 2022. The process, which took less than two months, was an important step for the Company to understand how quickly it can generate revenue from an acquired IP. The electrode margins are consistent with Salona Global's existing supply chain business.

“I am proud of the way the Salona Global team worked seamlessly to acquire, design, test, and bring to market new products in less than two months. This is exactly the advantage of vertical integration that has been a key to our strategy. We believe we can replicate this success many times,” said Les Cross, Chairman of the Board.

Mio-Guard currently works with over 30 sales representatives to distribute over 400 products to athletic trainers and physical therapists in over 30 states. The global medical electrode market size is projected to reach over USD $1.7B by 2028.1

To kick-off these new product offerings, representatives from Salona Global’s Mio-Guard are attending the National Athletic Trainers’ Association Convention now through July 1, 2022 at the Pennsylvania Convention Center in Philadelphia

“We continue to find methods to drive revenue growth by expanding the products we offer to patients, athletic trainers, and physical therapists, bringing more momentum to our newly listed and growing company,” said Les Cross. “We continue to expand our sales distribution footprint with these most recent products. We expect to generate revenues from these new products in the current quarter. Our ability to expand our product lines rapidly also makes us a better distribution partner. We expect to execute more distribution agreements as we grow both our customer list and sales channels. We continue to make progress finalizing due diligence and moving to a binding agreement on the acquisitions we recently announced.”

Salona Global is ‎a vertically integrated, acquisition-focused medical device company serving the global injury and surgery recovery (known as recovery science) market. Learn more about Salona Global at https://www.salonaglobal.com. Sign up at http://tinyurl.com/salonaglobalnewsletter for updates on Salona Global delivered directly to your inbox.

For more information please contact:

Les Cross
Chairman of the Board and Interim Chief Executive Officer
Tel: 1 (800) 760-6826
Email: Info@Salonaglobal.com

Additional Information

There can be no assurance that any potential acquisitions will ‎be completed as ‎proposed or at all and no definitive agreements for recently announced potential ‎acquisitions have been executed. Completion of any acquisition and any related ‎financing will be subject to applicable director, shareholder and regulatory (including the ‎TSX Venture Exchange) approvals.‎

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

Certain statements contained in this press release constitute "forward-looking ‎information" within the meaning of the Private Securities Litigation Reform ‎Act of 1995 and applicable Canadian securities laws. These statements can ‎be identified by the use of forward-looking terminology such as “expect” ‎‎“believe”, “estimate”, "may", "would", "could", ‎‎"should", "potential", ‎‎‎‎‎"will", ‎‎"seek", "intend", "plan", and "anticipate", and similar expressions as they ‎relate ‎‎‎‎to the Company, including: the Company believing it can replicate its success many times; the Company expecting to generate revenues from these new products in the current quarter; the Company expecting to execute more distribution agreements as it grows its customer list and sales channels; and the Company moving to a binding agreement on the acquisitions recently announced. All ‎statements ‎other than ‎statements of ‎historical fact ‎may be forward-‎looking ‎information. Such statements reflect the Company's ‎current views and intentions with respect to future ‎events, and current ‎information available to the Company, and are subject to certain risks, ‎‎uncertainties and assumptions, including, without limitation: past success is no indication of future performance, future performance is dependent upon supply chain availability, and other factors beyond the Company’s direct control; and the Company being satisfied with its due diligence and successfully negotiating and executing one or more definitive agreement. The Company cautions that the forward-‎looking statements contained herein are qualified by important factors that ‎could cause actual results to differ materially from those reflected by such ‎statements. Such factors include but are not limited to the ‎‎general business ‎and ‎‎economic ‎conditions in the regions in ‎which the Company operates; the ‎ability of the Company to execute on key ‎‎priorities, ‎including the successful ‎completion of acquisitions, business ‎retention, and ‎‎strategic plans and to ‎‎‎attract, develop ‎and retain key executives; difficulty integrating newly ‎acquired businesses; ‎‎the ability to ‎‎‎implement business ‎strategies and ‎pursue business opportunities; ‎‎disruptions in or ‎‎attacks (including ‎cyber-‎attacks) on the Company’s information ‎technology, internet, network ‎‎access ‎or other ‎‎voice or data ‎communications systems or services; the evolution of ‎various types of fraud or other ‎‎‎criminal ‎‎behavior to which ‎the Company is ‎exposed; the failure of third parties to comply with their obligations to the ‎Company or its ‎affiliates; the ‎impact of new and changes to, or application of, ‎current laws and regulations; ‎granting of permits and licenses in a highly ‎regulated business; the ‎overall difficult ‎‎‎‎‎litigation environment, including in ‎the United States; increased competition; changes in foreign currency rates; ‎‎increased ‎‎‎‎funding ‎costs and market volatility due to market illiquidity and ‎competition for funding; the ‎availability of funds ‎‎‎‎and resources to pursue ‎operations; critical ‎accounting estimates and changes to accounting ‎‎standards, policies, ‎‎‎‎and methods used by the Company; the occurrence of ‎natural and unnatural ‎‎catastrophic ‎events ‎and claims ‎‎‎‎resulting from such ‎events; 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; as well as those ‎risk factors ‎discussed ‎or ‎‎‎referred to in the Company’s disclosure ‎documents filed with United States ‎Securities and ‎Exchange ‎Commission and available at www.sec.gov, and ‎with the securities regulatory authorities in certain ‎provinces of ‎Canada and ‎available at www.sedar.com. Should any factor affect the Company in an ‎unexpected ‎‎‎manner, ‎or ‎should ‎assumptions ‎underlying the forward-looking ‎information prove incorrect, the actual results or ‎‎‎events ‎may ‎differ ‎materially ‎‎from the results or events predicted. Any such forward-looking information is ‎‎‎‎expressly ‎qualified ‎in its ‎entirety by ‎this cautionary statement. Moreover, the ‎Company does not assume ‎‎‎responsibility for the ‎‎accuracy or ‎‎completeness of ‎such forward-looking information. The forward-looking ‎‎‎information included in ‎the ‎investor call ‎is ‎made as of the date of the investor call and the Company ‎undertakes ‎‎‎no obligation to publicly ‎update or ‎revise ‎any ‎forward-looking ‎information, other than as required by applicable ‎‎‎law.

1 According to a recent study by Brandessence Market Research.