Sanara MedTech Inc. Announces the Acquisition of Certain Assets Related to its Collagen Products Business FORT WORTH, TX / GlobeNewswire /

MedTech Inc. Announces the Acquisition of Certain Assets Related to its Collagen Products Business

WORTH, TX / GlobeNewswire / August 2, 2023 / 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 the acquisition of certain assets related to its collagen products business.

acquisition of proprietary assets (the "Asset Acquisition") from Applied Nutritionals, LLC, The Hymed Group Corporation,

and Dr. George Petito (collectively, the "Sellers") is a major milestone for Sanara's strategy to own the intellectual

property, including trade secrets, for its hydrolyzed collagen products. In addition, the Company believes controlling its manufacturing

will reduce costs as well as help it to expand research and development efforts related to hydrolyzed collagen products.

Fleming, Sanara's Chief Executive Officer, stated, "We believe that this transaction furthers our goals by eliminating the

royalties we pay to the Sellers on CellerateRX Surgical Powder and Gel ("CellerateRX") and HYCOL

Hydrolyzed Collagen ("Hycol"), giving Sanara control of the manufacturing process for CellerateRX and Hycol, and giving

us full rights to develop new collagen products for human wound care uses based on the acquired technology. I would also add that Sanara

has an outstanding relationship with the Applied Nutritionals team and we look forward to continuing to work with them on new innovative

products under the terms of the agreement."

assets that Sanara acquired include the following:

initial purchase price for the assets that were acquired by the Company is $15.25 million, consisting of $9.75 million in cash paid at

closing, shares of the Company's common stock with an agreed upon value of $3.0 million, and four equal annual installments of

$625,000 in cash. The Sellers are also entitled to earnout payments of up to $10.0 million based on future sales of a collagen-based

product currently under development, as well as certain royalties and incentive payments on future products that are developed. Cash

at closing is being funded through a loan provided by Cadence Bank.

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 AMPLIFY Verified Inductive Bone Matrix, ALLOCYTE

Advanced Cellular Bone Matrix, BiFORM Bioactive Moldable Matrix and TEXAGEN Amniotic Membrane Allograft

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. In addition, Sanara is actively seeking to expand within its six focus areas

of wound and skin care for the acute, post-acute, and surgical markets. The focus areas are debridement, biofilm removal, hydrolyzed

collagen, advanced biologics, negative pressure wound therapy products and the oxygen delivery system segment of the wound and skincare

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 potential benefits created by the Asset Acquisition, the anticipated impact of the Asset Acquisition

on Sanara's business and future financial and operating results, Sanara's ability to develop and commercialize the new collagen-based

products currently under development, including the manufacturing, distribution, marketing and sale of such products; Sanara's

ability to maintain or replace the Sellers' manufacturing and distribution process, including relationships with vendors, 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 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