Salona Global Medical Device Corporation

Thank you for joining us today. I'd like to introduce Solana Global Medical Device Corporation's Senior Counsel, Joe Martinez. Thank you. Welcome to the third quarter earnings call for Solana Global Medical Device Corporation listed on the TSXV under the ticker SGMD. I'd like to remind everyone that today's discussion will include forward-looking information and forward-looking statements future-oriented financial information and non-IFRS measures regarding future events and our future financial performance. These statements reflect our views as of today only and should not be considered as representing our views for any subsequent date and except as required by law. We do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after today, many of which are beyond our control. These statements are also subject to material risks and uncertainties that could cause actual results to differ materially from expectations reflected in the forward-looking statements. The discussion of these risk factors is fully discussed and referred or referred to in the company's earnings release issued this morning and in Solana Global's disclosure documents filed on EDGAR and CDAR. During this call, we may also refer to certain non-GAAP financial measures. For information regarding our non-GAAP financials and a reconciliation of GAAP to non-GAAP measures, please also refer to our earnings release and our EDGAR and CDAR filings. Ladies and gentlemen, allow me to introduce Solana Global Medical Device Corporation's Chief Executive Officer, Luke Falstick.

Thank you, Joe, and good afternoon to everyone. Today we posted our reviewed third fiscal quarter financials for nine months and six months ending November 30, 2022. We've continued to build on our company vision and our business plan this quarter. I will review some of the highlights, which Dennis Nelson, our CFO, will provide more detail later on in the call to update you on our two main business priorities to close biodex and affect a potential U.S. dual listing. Our revenues and gross margin grew triple digit year over year, building quarterly and year-to-date revenues and gross margin dollars to new company records. We have our largest open order bookings in the history of the company. We raise gross margin as a percentage of revenue quarter over quarter by focusing on higher margin products and services. we generated operational profit for the first nine months of the fiscal year, described as net income before the undernoted, as compared to an operational loss for the same period in the prior year. This improvement year over year is achieved even with the increased quarterly expenses required to build infrastructure in advance of the large expected biodex acquisition. We have positioned the organization to close biodex and are prepared to do so. We have had many inquiries over the past week about the timing of close. We want to remind our shareholders that acquiring an international medical device company is complex and will take some time. We have several steps we need to take to complete the close. Perhaps the most unpredictable part of timing are the third party transfers and approvals, including regulatory approvals that are required to close. We are working quickly to ensure we get all of the manufacturing certifications and international regulatory transfers and approvals, but it will take some time. In the meantime, we are focused on potential U.S. listing. We have engaged a U.S. investment bank that specializes in micro-cap companies, and we expect we will start meeting potential U.S. investors. We think providing exposure to that capital market is key to returning to a multiple that is consistent with our peers. The Canadian capital market for a company like ours simply is not working today. We are fortunate with this Biodex deal announced, we have the scale of revenues to potentially move to the U.S. capital market. As always, we do have a strong pipeline of cash flow positive acquisition targets for future acquisitions in the coming quarters after the Biodex close. And we continue to invest in product development to increase our high margin branded product portfolio to drive organic growth. I will now turn the call over to Les Cross, our executive chairman, to review our market and our business plan. Les?

Great. Thanks, Luke. Good afternoon, everybody. Thanks for joining us on the call. As a reminder, we are focused on serving a $30 billion market for products that help people recover from injuries, surgeries, physical disabilities, and this market is known as recovery science. We penetrate this market through a proven approach, the same approach we took with DJO Global. Elona Global is no different. Our primary strategy is acquiring companies that have not fully realized their potential revenues. And we would be marketing these products through our established sales channel, which has taken us decades to develop. While we are just six quarters into this plan, our execution has been very solid. We launched Alona Global. Since we launched Alona Global, the execution has gone well. We have made an average of one acquisition per quarter. and we've seen organic growth post acquisition in each of the deals we have completed. Because we were strategic in our early acquisitions, we have purposely created an integrated medical device company with five engines to drive revenue and profit growth. The first engine of revenue and profit growth is merger and acquisitions. We have proven now that we have a deep pipeline of deal flow where we can be picky about the companies we acquire in the future. Our second engine of growth comes from product development. We are working on several products that we can bring to the market in short order. They can be developed, approved, and produced, and return strong growth in profit to our shareholders as we launch these products. Our third engine for growth is product intellectual property acquisition. We acquired a portfolio of medical device intellectual property recently, giving us the ability to expand our own product offerings. We are optimistic that we have opportunities to find more deals like this in the coming quarters. Our fourth engine of growth is executing product distribution deals through our sales channel. In May, we executed a distribution agreement with a European laser company, enabling our current sales channel to offer additional large ticket items into their customers within their other product offering. We are actively negotiating several more deals of this type. Our fifth and final growth engine is organic growth post acquisition. We have already started to experience the benefits of the potential to grow revenues and profits upon closing these acquisitions. Since selling our previous company, the Blackstone, we have seen this market change. that has become even more fragmented through product innovation. Additionally, the large businesses that serve this market, such as our prior company, can no longer achieve meaningful growth by buying a number of small medical device companies. To fully take advantage of our opportunity, we have a very talented and experienced executive team and advisor team. We have targeted building this team as part of our acquisition and have recruited other executives with similar experiences. We also have a well-known and talented M&A and capital markets team. This is led by the former chairman and vice chairman for patient home monitoring, PHM as it was known. It is now these two companies are now listed on the NASDAQ, and I think you know them by a minute and quipped. Now that we have completed acquiring the building blocks of a fully integrated company, we are in a position to make additional acquisitions in numerous markets, develop and sell our own products, acquire product IP and execute on distribution deals. We do wanna remind our shareholders that we've been able to accomplish this in just 18 months of operations. In this short period of time, we have five solid methods to generate revenue and profit growth. In terms of our goals for the future, we expect to continue our rapid revenue growth as we execute on these five strategies I just mentioned. I will turn the call back to Luke now to provide more details on our quarter and our plans for growth in the next quarter and beyond.