Salona Global Medical Device Corporation (TSXV:SGMD) agreed to acquire Physical medicine assets from Biodex Medical Systems, Inc. for $8 million on August 15, 2022. Salona Global Medical Device Corporation (TSXV:SGMD) entered into a binding agreement to acquire Physical medicine assets from Biodex Medical Systems, Inc. on November 29, 2022. The consideration for the Acquired Assets is $5 million in cash at closing and up to an additional $3 million in deferred cash payments contingent on performance of the Acquired Assets during the 12-month period following closing.

As of March 16, 2023, under the terms of the agreement, the total consideration for the Acquisition is $8 million in cash, with $1 million due at closing, and an additional $7 million in deferred cash payments payable at the end of the three quarters following the closing. The assets reported a revenue of $18 million. As part of the acquisition, at the closing the parties will execute a two-year contract manufacturing agreement with Biodex, which together with the Acquired Assets are expected to generate $26 million annually.

The acquisition is subject to customary closing conditions. As of November 29, 2022, the Company intends to use the net proceeds of the Offering towards the acquisition of the assets from Biodex Medical Systems, Inc., thereby reducing the amount the Company borrows against its existing debt facility, as well as for working capital and general corporate purposes. Jeffrey S. Davis of Hartmann Doherty Rosa Berman & Bulbulia, LLC acted as legal advisor to Mirion Technologies, Inc. The closing is subject to customary closing conditions.

Transaction is expected to close by March 31, 2023. Transaction is expected to close on April 3, 2023. Upon closing the Acquisition, Salona Global will add net positive working capital of approximately $3.5 million to its asset base.

As of August 8, 2023, Salona Global executed an agreement to extend the payment terms of the debt incurred in connection with its acquisition of Biodex Medical. As of July 25, 2023, the remaining amounts to be paid according to the closing statement by the Company under the Agreement are (i) the Acquisition Debt is total $6.75 million plus interest; and (ii) the WC Loan total of $1.50 million for a total of $8.25 million. The Company entered into an agreement dated August 4, 2023 (the ?Debt Extension Agreement?) which extends the maturity date for amounts payable under (i) the WC Loan to October 31, 2023; and (ii) the Acquisition Debt to July 31, 2025.

The Company is working towards finalizing a $2 million asset-based lending (ABL) facility on the Biodex assets with its current lender. Subject to successfully closing on the ABL facility, SGMD intends to use a portion of this facility to pay down the WC Loan.