Business
Sanara MedTech Inc. Announces That The Catalyst Group Has Converted Its 30-Month Promissory Note and Series F Convertible Preferred Stock Into Common Equity
FORT WORTH, TX / ACCESSWIRE / February 10, 2020 / Sanara MedTech Inc. Based in Fort Worth, Texas, Sanara MedTech Inc. ("Sanara" or the "Company")
About this update from Sanara Medtech Inc.
[{"type":"text","content":"FORT WORTH, TX / ACCESSWIRE / February 10, 2020 / Sanara MedTech Inc. Based in Fort Worth, Texas, Sanara MedTech Inc. (\"Sanara\" or the \"Company\") (OTCQB:SMTI), a provider of surgical and chronic wound care products dedicated to improving patient outcomes, announced today that on February 7, 2020 The Catalyst Group, Inc. (\"Catalyst\") converted into Common Stock Catalyst's entire holdings of the Company's 30-month $1,500,000 convertible promissory note and Series F Convertible Preferred Stock.The promissory note was issued on August 27, 2018 in connection with Wound Management Technologies' (Sanara's predecessor company) formation of a joint venture with Catalyst. This joint venture allowed Wound Management Technologies to continue to market its principal products, CellerateRX® Surgical Activated Collagen® Peptides and CellerateRX® Hydrolyzed Collagen wound fillers (\"CellerateRX\") through a 50% ownership interest in a newly formed Texas limited liability company, Cellerate, LLC, which began operations on September 1, 2018. The remaining 50% ownership interest was held by an affiliate of Catalyst, which had acquired an exclusive world-wide license to distribute CellerateRX products. The $1,500,000 principal of the promissory note and accrued and unpaid interest was converted into Common Stock of Sanara at a conversion price of $9 per share. This conversion resulted in the issuance of 179,101 new shares of Common Stock by the Company.On March 15, 2019, the Company acquired Catalyst's 50% interest in Cellerate, LLC in exchange for 1,136,815 shares of the Company's newly created Series F Convertible Preferred Stock. Each share of Series F Convertible Preferred Stock was converted into 2 shares of Common Stock. This conversion, which will have no impact on the number of fully diluted shares of Common Stock outstanding, resulted in 2,273,630 new shares of Common Stock being issued by the Company.After the conversion of the promissory note and Series F Convertible Preferred Stock there are 6,023,732 shares of Common Stock outstanding.Ron Nixon, Sanara's Executive Chairman and the Founder and Managing Partner of The Catalyst Group stated, \"This conversion is meant to simplify and align the Company's capital structure by eliminating the promissory note and Preferred Stock. It is reflective of Catalyst's confidence in both Sanara a...