Sanara MedTech (NSDQ:SMTI) announced today that it entered into a definitive merger agreement with Precision Healing.
Fort Worth, Texas–based Sanara’s agreement will result in Precision Healing merging with and into a wholly-owned subsidiary of Sanara, with both companies’ boards of directors approving the transaction.
According to a news release, the companies expect the merger, which also received the requisite approval of Precision Healing stockholders, to close today.
Before the transaction, Sanara owned 25.7% of Precision Healing on a fully diluted basis. The purchase price for the merger includes approximately $5.1 million in stock and cash consideration, the majority of which will be paid by Sanara in stock with a limited number of non-accredited investors receiving cash. Sanara said it expects to enter into employment agreements with all “key” Precision Healing employees.
Precision Healing designs the Precision Healing imager to address gaps in wound care in which diagnostics of key tissue and biomolecular characteristics were not utilized. The company developed the imager and biomarker assay to provide real-time data for key wound characteristics that can guide clinical treatments for faster healing.
The company is currently preparing the imager for 510(k) clearance submission to the FDA. It plans to file before the end of the third quarter of 2022, while the biomarker assay will be filed in parallel.
“When completed, we expect that Precision Healing’s multispectral imager and biomarker assay will help patients obtain an early, accurate diagnosis and receive appropriate treatments more quickly than the current standard of care,” Sanara Executive Chairperson Ron Nixon said in the release. “We expect that the technologies will also allow physicians and clinicians to easily assess treatment protocols through proprietary algorithms developed by Precision Healing and put the Company in a position to partner with value-based care providers.”