Sanara MedTech Inc. Based in Fort Worth, Texas, Sanara MedTech Inc.
(“Sanara,” the “Company,” “we,” “our” or “us”) (NASDAQ: SMTI), a
medical technology company focused on developing and
commercializing transformative technologies to improve clinical
outcomes and reduce healthcare expenditures in the surgical,
chronic wound and skincare markets, announced today that it has
entered into a $55.0 million non-dilutive term loan agreement with
CRG Servicing LLC, an affiliate of CRG LP (“CRG”), a healthcare
focused investment fund, to support the Company’s growth
initiatives in 2024 and 2025.
Sanara received $15.0 million in gross proceeds
at closing and can draw up to $40.0 million in additional funds, at
its option, in two tranches before June 30, 2025. The Company used
approximately $9.8 million of the net proceeds to retire its
existing debt. The remaining net proceeds will be used for the
Company’s growth initiatives, including permitted acquisitions and
investments, as well as for working capital and general corporate
purposes. In addition, Sanara is currently in discussions with a
commercial bank to establish a $10.0 million revolving line of
credit as permitted under the CRG facility.
Zach Fleming, Sanara's Chief Executive Officer,
stated, “We are pleased to partner with CRG, a premier investment
firm in the healthcare industry. We believe this non-dilutive
capital will allow us to support our growth initiatives and provide
access to additional capital for potential acquisition
opportunities that the Company may identify as accretive to our
business strategy.”
Luke Düster, Partner of CRG stated, “We are
excited to be working with Sanara and their management team who
have a proven record of success. This transaction demonstrates our
confidence in the Company’s ability to continue to execute on its
growth plan by serving more patients and providers with their
portfolio of products that can help improve outcomes and reduce
healthcare expenses.”
About Sanara MedTech Inc.
With a focus on improving patient outcomes
through evidence-based healing solutions, Sanara MedTech Inc.
markets, distributes and develops surgical, wound and skincare
products for use by physicians and clinicians in hospitals, clinics
and all post-acute care settings and offers wound care and
dermatology virtual consultation services via telemedicine.
Sanara’s products are primarily sold in the North American advanced
wound care and surgical tissue repair markets. Sanara markets and
distributes CellerateRX® Surgical Activated Collagen®, FORTIFY TRG®
Tissue Repair Graft and FORTIFY FLOWABLE® Extracellular Matrix as
well as a portfolio of advanced biologic products focusing on
ACTIGEN™ Verified Inductive Bone Matrix, ALLOCYTE™ Plus Advanced
Viable Bone Matrix, BiFORM® Bioactive Moldable Matrix, TEXAGEN®
Amniotic Membrane Allograft, and BIASURGE® Advanced Surgical
Solution to the surgical market. In addition, the following
products are sold in the wound care market: BIAKŌS® Antimicrobial
Skin and Wound Cleanser, BIAKŌS® Antimicrobial Wound Gel, BIAKŌS®
Antimicrobial Skin and Wound Irrigation Solution and HYCOL®
Hydrolyzed Collagen. Sanara’s pipeline also contains potentially
transformative product candidates for mitigation of opportunistic
pathogens and biofilm, wound re-epithelialization and closure,
necrotic tissue debridement and cell compatible substrates. The
Company believes it has the ability to drive its pipeline from
concept to preclinical and clinical development while meeting
quality and regulatory requirements. Sanara is constantly seeking
long-term strategic partnerships with a focus on products that
improve outcomes at a lower overall cost.
About CRG
CRG is a premier healthcare investment firm that
has committed more than $4 billion of assets across five funds to
date. The firm seeks to invest between $20 - $300 million in
companies across the healthcare spectrum, including: medical
devices, biopharmaceuticals, tools & diagnostics, services and
information technology. CRG provides growth capital in the form of
long-term debt and equity to support innovative, commercial-stage
healthcare companies that address large, unmet medical needs. The
firm partners with public and private companies to provide flexible
financing solutions and world-class support to achieve exceptional
growth objectives with minimal dilution. CRG maintains offices in
Boulder, New York and Houston. For more information, please visit
crglp.com.
Information about Forward-Looking
Statements
The statements in this press release that do not
constitute historical facts are “forward-looking statements,”
within the meaning of and subject to the safe harbor created by the
Private Securities Litigation Reform Act of 1995. These statements
may be identified by terms such as “aims,” “anticipates,”
“believes,” contemplates,” “continue,” “could,” “estimates,”
“expect,” “forecast,” “guidance,” “intend,” “may,” “plan,”
“possible,” “potential,” “predicts,” “preliminary,” “projects,”
“seeks,” “should,” “targets,” “will” or “would,” or the negatives
of these terms, variations of these terms or other similar
expressions. These forward-looking statements include, among
others, statements regarding the negotiation and establishment of a
new revolving credit facility, the identification of potential
acquisitions and growth initiatives, the intended use of net
proceeds from the CRG facility, the development of new products,
the timing of commercialization of our products, the regulatory
approval process and expansion of the Company’s business in
telehealth and wound care. These items involve risks, contingencies
and uncertainties such as Sanara’s ability to negotiate and
establish a new revolving credit facility on favorable terms or at
all, our ability to identify and consummate favorable and accretive
acquisitions and effectively integrate any companies or products
that we acquire, our ability to identify and effectively utilize
the net proceeds for growth initiatives, the extent of product
demand, market and customer acceptance, the effect of economic
conditions, competition, pricing, uncertainties associated with the
development and process for obtaining regulatory approval for new
products, the ability to consummate and integrate acquisitions, and
other risks, contingencies and uncertainties detailed in the
Company’s SEC filings, which could cause the Company’s actual
operating results, performance or business plans or prospects to
differ materially from those expressed in, or implied by these
statements.
All forward-looking statements speak only as of
the date on which they are made, and the Company undertakes no
obligation to revise any of these statements to reflect the future
circumstances or the occurrence of unanticipated events, except as
required by applicable securities laws.
Investor Contact:
Callon Nichols, Director of Investor
Relations713-826-0524CNichols@sanaramedtech.com
SOURCE: Sanara MedTech Inc.
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