Business
Sanara MedTech Inc. Announces the Purchase of Certain Assets from Rochal Industries, LLC
FORT WORTH, TX / ACCESSWIRE / July 19, 2021 / Sanara MedTech Inc. Based in Fort Worth, Texas, Sanara MedTech Inc. ("Sanara," the "Company," "we," "our" or
About this update from Sanara Medtech Inc.
[{"type":"text","content":"FORT WORTH, TX / ACCESSWIRE / July 19, 2021 / Sanara MedTech Inc. Based in Fort Worth, Texas, Sanara MedTech Inc. (\"Sanara,\" the \"Company,\" \"we,\" \"our\" or \"us\") (NASDAQ:SMTI), a provider of surgical and chronic wound care products dedicated to improving patient outcomes, announced today the acquisition of certain assets of Rochal Industries, LLC (\"Rochal\").Ron Nixon, Sanara's Executive Chairman, stated, \"As part of our comprehensive wound and skin strategy, Sanara is committed to commercializing innovative products that improve outcomes at a lower overall cost. We believe the addition of the Rochal team, with their extensive experience in commercializing technology innovations, is a key component to helping us achieve that strategy. Through this acquisition, Sanara gained a dedicated research and development team, led by Dr. Rebecca McMahon, that we believe can develop products uniquely suited to address our patients' wound and skin conditions. This team also strengthens our expertise in areas of regulatory, manufacturing, and quality control and aligns the long-term interests of both companies.\"Ann Beal Salamone, Rochal's Chairman, added, \"Rochal has enjoyed a fruitful relationship with Sanara since 2019 and is looking forward to the continuing success of its products under Sanara's leadership.\"Transaction SummarySanara acquired certain assets of Rochal, including, among others, intellectual property, four FDA 510(k) clearances, rights to license certain products and technologies currently under development, equipment, and supplies. In addition, Sanara has hired all Rochal personnel. Rochal retained certain license agreements for products already licensed to Sanara, one silicone FDA 510(k) cleared product, and rights to certain products and technologies currently under development.The purchase price for the Rochal assets was approximately $1.0 million, consisting of $0.5 million in Sanara common stock and approximately $0.5 million in cash. Sanara believes that by acquiring these assets, it will incur approximately $1.2 million to $1.5 million in additional operating expenses in the first 12 months following the acquisition, but some of this expense could be offset by future grants and outside contract revenue that may be received by the Company as a result of the acquisition.About Rochal Industries, LLCRochal I...