Evome Medical Technologies Provides Market Update

Business Update:

The Company is currently finalizing a plan to navigate these challenges and will provide updates to shareholders through future press releases. The Company is committed to delivering high quality products to its customers and continues to make deliveries as it works with suppliers and customers to adjust to the current conditions.

“I was asked by the outgoing management and board members to come into a challenging situation, where I am a large shareholder and, with all other shareholders, at the bottom of the capital/debt stack,” said Mr. Michael Dalsin, Chairman.“With the reduction of operating debt, as well as acquisition debt, the company now faces a cash flow issue that will need to be navigated. The fact that there is currently negligible working capital makes this process very challenging. Additionally, the impact of tariffs remains uncertain at the moment. But we do anticipate that our raw material costs, largely made up of aluminum and steel, may increase and the effect on revenues is difficult to predict. As we have a large stock of inventory on hand, I feel confident we can continue to deliver products to customers and generate revenue as we look for solutions to this challenge.”

“Chris Heath and I will work to overcome the challenges,” continued Mr. Dalsin.“There is substantial debt at the operating subsidiary level, the Company's sole assets, that ultimately stands in front of shareholders equity. Simply put, we hope to have sufficient cash flow and value in the three businesses to pay off the debt in full with additional cash left over, preserving some measure of equity value if possible.”

The Company will update the market by press release as the plan unfolds, and will not conduct one-on-one calls with any investors or market participants to avoid the perception of selective disclosure.

Michael Dalsin
Chairman
Tel: 1 (800) 760-6826 ‎
Email: ...‎

Additional Information

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.

Unless otherwise specified, all financial information is presented in Canadian dollars ("$", "dollars" and "C$").

There can be no assurance that the disposition of DaMar will ‎be completed or the sale price or timing of any ‎disposition. Completion of any transaction will be subject to, amongst other things, ‎negotiation and execution of definitive agreements, and applicable ‎director, shareholder ‎and ‎regulatory approvals.‎

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“expects”“believes”,“estimates”, "may", "would", "could", ‎‎"should", "potential", ‎‎‎‎‎"will", "seek", "intend", "plan", and "anticipate", and similar expressions as they relate ‎‎‎‎to the Company, including, without limitation: the impact of tariffs on the costs of raw materials; Biodex being subject to retaliatory tariffs on the sale of its products outside the United States; Biodex having to increase prices to both domestic and international customers; statements with respect to the issuance and timing of an FFCTO; and the filing of the Documents; the Company successfully disposing of DaMar and the use of such proceeds; and the amount of acquisition debt the Company would be able to eliminate upon the sale of DaMar. 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. 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; ‎‎ongoing or new disruptions in the supply chain, the extent and scope of such supply chain disruptions, and the timing or extent of the resolution or improvement of such disruptions; 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; 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 ‎, and with ‎the securities regulatory authorities in certain provinces of Canada and ‎‎available at ‎ 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 this press release ‎‎is made as of the ‎date of this press ‎release and the Company undertakes no obligation to publicly update or revise ‎‎any forward-‎looking information, ‎other than as required by applicable law‎.

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