Golden Cross
5 년 전
News - Sanara MedTech Inc. Announces Closing of $10,000,000 Private Placement of Common Stock
Wednesday, October 16, 2019 9:00 AM
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.
Sanara MedTech Inc. markets and distributes wound and skincare products to physicians, hospitals, clinics, and all post-acute care settings. Its products are primarily sold in the North American advanced wound care and surgical tissue repair markets.
Information about Forward-Looking Statements
The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from new products in development and any other statements not constituting 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. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the Company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning the Company's operations, current and future performance and financial condition. These items involve risks, contingencies and uncertainties such as product demand, market and customer acceptance, the effect of economic conditions, competition, pricing, 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. The Company undertakes no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
Investor Contact:
Callon Nichols, Director of Investor Relations
713-826-0524
CNichols@sanaramedtech.com
SOURCE: Sanara MedTech Inc.
toddski
5 년 전
Thus company is so weird. They increased a credit line, and as far as I know they are still unprofitable. They want to re purchase 5 percent of the outstanding shares. At today's prices that would be over a half million dollars. I feel like that money would go to better use hiring a profits and loss specialist. I feel as though they would need to direct purchase from Mr Nixon, who would be selling at a loss with today's price. I would be very surprised why he would do that. Buying open market would drive the stock price up past $20 a share due to lack of volume. We'll see what happens.
Does anyone have any thoughts about the below?
Approval of Stock Purchase Program
The Company's Board of Directors has authorized the Company to purchase up to 5.0% of the current outstanding shares of the Company's common stock from time to time in the open market or through privately negotiated transactions at prevailing market prices, depending on market conditions. The repurchase program has no time limit and may be discontinued at any time, however the Company will use its best efforts to complete the repurchase program by the end of 2019. All shares repurchased, whether through open market or privately negotiated transactions, will be restored to the status of authorized but unissued stock.
Ron Nixon, Executive Chairman of the Board, stated, "The Board fundamentally believes that the Company's stock is undervalued at current prices and the stock repurchase program provides a meaningful way to deliver value to our shareholders."