Full Press Release Details
MedTech Inc. Announces $55 Million Debt Facility
WORTH, TX / GlobeNewswire / April 18, 2024 / 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.
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.
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."
D ster, 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."
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: BIAK S Antimicrobial Skin and Wound Cleanser, BIAK S Antimicrobial
Wound Gel, BIAK S 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.
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.
about Forward-Looking Statements
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.
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
Nichols, Director of Investor Relations