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Sanara MedTech Inc. Announces Entry into Merger Agreement to Acquire Precision Healing Inc.
FORT WORTH, TX, April 04, 2022 (GLOBE NEWSWIRE) -- Sanara MedTech Inc. Based in Fort Worth, Texas, Sanara MedTech Inc. (“Sanara,” the “Company,” “we,” “our”
About this update from Sanara Medtech Inc.
[{"type":"text","content":"FORT WORTH, TX, April 04, 2022 (GLOBE NEWSWIRE) -- Sanara MedTech Inc. Based in Fort Worth, Texas, Sanara MedTech Inc. (“Sanara,” the “Company,” “we,” “our” or “us”) (NASDAQ: SMTI), a provider of products and technologies for surgical and chronic wound care dedicated to improving patient outcomes, announced today that it has entered into a definitive agreement and plan of merger with Precision Healing Inc. (“Precision Healing”), pursuant to which Precision Healing will merge with and into a wholly owned subsidiary of Sanara. The transaction has been approved by the boards of directors of both companies, received the requisite approval of Precision Healing stockholders and is expected to close today, subject to satisfaction of customary closing conditions. Ron Nixon, Sanara's Executive Chairman, stated, “We have been the exclusive license holder of Precision Healing’s technology in the healthcare industry in the U.S. as well as an investor in the company since 2020. Since that time, the Precision Healing team has continued to develop what we believe will be innovative and disruptive technologies for the diagnosis of chronic wounds. When completed, we expect that Precision Healing’s multispectral imager and biomarker assay will help patients obtain an early, accurate diagnosis and receive appropriate treatments more quickly than the current standard of care. We expect that the technologies will also allow physicians and clinicians to easily assess treatment protocols through proprietary algorithms developed by Precision Healing and put the Company in a position to partner with value-based care providers.” Transaction Details Prior to this transaction, Sanara owned 25.7% of Precision Healing on a fully diluted basis. The purchase price for this transaction consists of approximately $5.1 million in stock and cash consideration, the assumption of outstanding options and warrants of Precision Healing and certain earnout obligations, valuing Precision Healing’s equity (excluding shares of Precision Healing held by Sanara and net of the exercise price of options and warrants assumed by Sanara) at approximately $7.8 million before the earnout consideration. The majority of the consideration will be paid by Sanara in stock with a limited number of non-accredited investors receiving cash. Concurrent with the closing of this transaction, Sa...