Mr. Brent Ashton reports

COVALON TECHNOLOGIES LTD. ANNOUNCES PAYMENT OF FIRST EVER DIVIDEND, MARKING A MILESTONE IN FINANCIAL STRENGTH

Covalon Technologies Ltd. paid on Nov. 18, 2025, its first ever dividend -- a special cash dividend of 15 cents per common share -- reflecting the company's strong financial performance and continued success in accelerating the adoption of its unique, patented, life-saving and life-improving medical technologies.

This special dividend represents a significant milestone in Covalon's evolution and demonstrates the company's commitment to delivering value to its shareholders. It comes on the heels of several consistent quarters of disciplined execution, profitability, and expanding adoption of Covalon's proprietary technologies in hospitals and health care facilities around the world.

"This dividend marks an exciting new phase for Covalon," said Brent Ashton, chief executive officer of Covalon. "It is both a thank you to our loyal shareholders and a signal of the financial strength and stability we've worked hard to achieve. In the past three years, Covalon has increased revenue by 82 per cent to $33.0-million, increased gross margins from 41 per cent to 56 per cent and flipped adjusted EBITDA from minus $7.8-million to plus $4.1-million. Our incredible technologies are greatly improving patient care while also driving strong, sustainable financial results for our company, and this dividend is one way we're sharing that success. Numerous advancements including our recent VALGuard line guard clinical evidence study and our new CovaClear indication are fuelling accelerated growth, which gives the company a solid basis for continued strength of financial performance."

This dividend, made possible by the significant financial turnaround over the past few years, gives shareholders the flexibility to realize an immediate cash return or to reinvest the proceeds to increase their holdings of Covalon shares.

The special dividend of 15 cents per share was payable on Nov. 18, 2025, to shareholders of record as of Nov. 4, 2025.

About Covalon Technologies Ltd.

Covalon is a leading medtech company dedicated to improving patient outcomes through innovative and compassionate medical products and technologies. Its expertise spans advanced wound care, vascular access and surgical consumables, with a strong focus on enhancing healing, reducing health-care-associated infections and protecting skin integrity. Its solutions are designed for patients and made for care providers. The company is listed on the TSX Venture Exchange and trades on the OTCQX Market.