TORONTO,
Feb. 3, 2014 /CNW Telbec/ -
Jeffrey Mandel, President and CEO of
Mitec Technologies Inc. (TSXV: MTM.h), today issued the following
statement:
"In the past few days, I have had questions from
many of our shareholders about the share price increase
of Covalon Technologies Inc. (TSX-V: COV) and what impact it
has on the valuation of Mitec. I have decided to issue a press
release so that all shareholders have the benefit of the same
information.
On a fully diluted basis, Mitec currently owns
approximately 15% of Covalon, of which I am also a member of
its Board of Directors. Covalon's share price has risen from about
$0.20 to $1.75 over the past six
months.
Based on Covalon's current share price, Mitec's
holdings in Covalon equates to approximately $0.40 of value on a per Mitec share
basis. Mitec shares are currently trading below this
price.
Furthermore, Mitec's current share price does
not appear to reflect any value in the intellectual property
Mitec recently acquired which has the potential, if
successfully implemented, to prevent the type of electronic
theft of sensitive credit card and customer information that has
recently been reported in the media involving numerous major
corporations.
Abe Schwartz, a
successful and experienced serial entrepreneur, is Chairman of both
Covalon and Mitec. He is quarterbacking Mitec's product development
and commercialization strategies. I am very pleased with the
progress Mitec is making.
I am equally pleased with the significant
progress Covalon has made in executing a successful turnaround. The
press release issued by Covalon on January
28, 2014 provides more complete information about this (see:
http://cnw.ca/lU01w).
This press release suggests to me that Covalon's
current share price does not fully reflect the financial impact of
its recently announced major distribution deal for Covalon's
advanced woundcare dressings with Mölnlycke Health Care, a
worldwide leader in the woundcare market.
In particular, the $3.5
million USD advance payment that Covalon has received from
Mölnlycke has not yet been reflected in its financial
results.
For these and other reasons, I am optimistic
about both Mitec and Covalon's future prospects."
This news release contains forward-looking
statements which reflect Mitec's current expectations regarding
future events. The forward-looking statements are often, but not
always, identified by the use of words such as "seek",
"anticipate", "plan, "estimate", "expect", "intend" and statements
that an event or result "may", "will", "should", "could" or "might"
occur or be achieved and other similar expressions. These
forward-looking statements involve risk and uncertainties,
including the difficulty in predicting product approvals,
acceptance of and demands for new products, the impact of the
products and pricing strategies of competitors, delays in
developing and launching new products, the regulatory environment,
fluctuations in operating results and other risks, any of which
could cause results, performance, or achievements to differ
materially from the results discussed or implied in the
forward-looking statements. Many risks are inherent in the
industry; others are more specific to Mitec. Investors should
consult Mitec's ongoing quarterly filings for additional
information on risks and uncertainties relating to these
forward-looking statements. Investors should not place undue
reliance on any forward-looking statements. The Mitec assumes no
obligation to update or alter any forward-looking statements
whether as a result of new information, further events or
otherwise.
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Mitec Technologies Inc.