Salona Global Medical Device Corporation (TSXV:SGMD) acquired Arrowhead Medical, LLC for $0.85 million on May 15, 2023. Pursuant to the agreement, the purchase price for the ownership interests in Arrowhead Medical, LLC consisted of the issuance of 1 million shares of its Class A common stock to the seller, the assumption of approximately $250,000 in bank debt under Arrowhead's existing asset based line of credit, and an agreement to pay the seller a contingent earn-out equal to one share of Class A common stock for each $1 of EBITDA generated by the Arrowhead business over the two year period following the closing date, not to exceed a maximum of 2 million Class A shares. Based on its unaudited financial results, Arrowhead's sales in calendar year 2022 were approximately $3.5 million, with gross profit of approximately 32%.

Salona Global Medical Device Corporation (TSXV:SGMD) completed the acquisition of Arrowhead Medical, LLC on May 15, 2023.