Prior to the acquisition, Wound Management Technologies and The Catalyst Group’s CGI Cellerate RX affiliate had owned equal shares in the spun-out company.
The Cellerate JV maintains an exclusive sublicense to distribute the CellerateRX activated collagen adjuvant into wound care markets in the U.S., Canada and Mexico.
Fort Worth, Texas.-based Wound Management Tech said that Cellerate will now act as a wholly owned subsidiary and will report its financial results on a consolidated basis beginning March 15.
The deal was funded by the issuance of approximately 1.1 million shares of Wound Management Tech’s Series F convertible preferred stock, the company said. Each share of Series F preferred stock can be converted at any time into 200 shares of common stock, according to an SEC filing.