Sanara MedTech Inc. Announces Closing of $10,000,000 Private Placement of Common Stock
FORT WORTH, TX / ACCESSWIRE / October 16, 2019 / Sanara MedTech Inc. (OTCQB:SMTI). Based in Fort Worth, Texas, Sanara MedTech Inc. (“Sanara”), a provider of surgical and chronic wound care products dedicated to improving patient outcomes, announced today that it has closed a private placement offering of 1,204,820 shares of its common stock at a price of $8.30 per share. All shares are being sold by Sanara as newly issued shares. The purchasers in the offering consist of related party entities to three members of Sanara’s Board of Directors. The transaction was approved by all of the disinterested Directors of Sanara. The price per share was determined by a special committee of the Board comprised of disinterested Directors who considered an independent third-party valuation of the offering price and other relevant information.
The $10 million of cash proceeds of the offering are expected to be used to fund milestone payments under current and future product license agreements, repayment of indebtedness under Sanara’s bank line of credit, and operating expenditures, including clinical studies and continued expansion of Sanara’s sales force.
The shares of common stock sold in the transaction have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.