Sanara MedTech Terminates Agreement, Incurs Obligation

TL;DR

Sanara MedTech terminated a deal and took on new debt.

AI Summary

Sanara MedTech Inc. announced on April 17, 2024, the termination of a material definitive agreement and the creation of a direct financial obligation. The company, formerly known as Wound Management Technologies, Inc., is based in Fort Worth, Texas.

Why It Matters

The termination of a material agreement and the creation of a new financial obligation could significantly impact Sanara MedTech's financial structure and future operations.

Risk Assessment

Risk Level: medium — The termination of a material definitive agreement and the creation of a direct financial obligation suggest potential financial distress or strategic shifts that warrant close monitoring.

Key Players & Entities

• Sanara MedTech Inc. (company) — Filer
• Wound Management Technologies, Inc. (company) — Former Company Name
• April 17, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value SMTI The Nasdaq Capital M
• $55.0 million — for a senior secured term loan of up to $55.0 million (the "Loan"). The Loan Agreement provid
• $15.0 million — "). The Loan Agreement provides for (i) $15.0 million of the Loan to be borrowed on the Closi
• $40.0 million — rowing") and (ii) up to an aggregate of $40.0 million available for borrowing in two subseque
• $5.0 million — at each such borrowing must be at least $5.0 million or a multiple of $5.0 million and occur
• $3.0 million — t which shall exceed the greater of (i) $3.0 million and (ii) to the extent the Company has
• $60.0 m — nding on December 31, 2024, of at least $60.0 million, (ii) for the twelve-month period
• $75.0 m — nding on December 31, 2025, of at least $75.0 million, (iii) for the twelve-month perio
• $85.0 m — nding on December 31, 2026, of at least $85.0 million, (iv) for the twelve-month period
• $95.0 million — nding on December 31, 2027, of at least $95.0 million and (v) during each twelve-month period
• $105.0 million — of a given year thereafter, of at least $105.0 million. The Loan Agreement also contains rep
• $12.0 million — an in the aggregate principal amount of $12.0 million (the "Cadence Term Loan"), terminated a
• $9.8 million — ng under the Cadence Loan Agreement was $9.8 million at the time of termination, and the Cad
• $27.1 — Company also paid Cadence approximately $27.1 thousand, which consisted of interest a

Filing Documents

• form8-k.htm (8-K) — 67KB
• ex10-1.htm (EX-10.1) — 1020KB
• ex10-2.htm (EX-10.2) — 275KB
• ex99-1.htm (EX-99.1) — 18KB
• ex99-1_001.jpg (GRAPHIC) — 5KB
• 0001493152-24-015133.txt ( ) — 1763KB
• smti-20240417.xsd (EX-101.SCH) — 3KB
• smti-20240417_lab.xml (EX-101.LAB) — 33KB
• smti-20240417_pre.xml (EX-101.PRE) — 22KB
• form8-k_htm.xml (XML) — 4KB

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth in Item 1.01 regarding the Loan Agreement is incorporated by reference into this Item 2.03.

01

Item 7.01 Regulation FD Disclosure. On April 18, 2024, the Company issued a press release announcing the Loan Agreement. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. The information included under Item 7.01 (including Exhibit 99.1) is furnished pursuant to Item 7.01 and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended ("Exchange Act"), or otherwise be subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filing.

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 10.1* Term Loan Agreement, dated April 17, 2024, by and among Sanara MedTech Inc., as borrower, the Subsidiary Guarantors party thereto, the lenders party thereto and CRG Servicing LLC, as administrative agent and collateral agent. 10.2* Form of Security Agreement, by and among Sanara MedTech Inc., the Subsidiary Guarantors party thereto and CRG Servicing LLC . 99.1 Press Release of Sanara MedTech Inc., issued April 18, 2024 (furnished pursuant to Item 7.01). 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). * Certain schedules and exhibits to this agreement have been omitted pursuant to Items 601(a)(5) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the SEC or its staff upon request.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: April 18, 2024 Sanara MedTech Inc . By: /s/ Michael D. McNeil Name: Michael D. McNeil Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR