WNDM Medical Inc. Is Partnering With The Catalyst Group
Aug. 28, 2018
FORT WORTH, TX / ACCESSWIRE / August 28, 2018 /WNDM Medical Inc. ("WNDM"), (OTCQB: WNDM) a provider of surgical and chronic wound care products together with an affiliate of The Catalyst Group, Inc. ("Catalyst"), a middle market private equity firm with offices in Houston and Austin, Texas, announced that the parties have entered into an agreement effective as of August 28, 2018, which will continue WNDM's current operations through joint 50% ownership in a newly formed limited liability company, Cellerate, LLC (the "Company") and which will provide for the extension of market opportunities for CellerateRX® Activated Collagen® Products. WNDM anticipates that this arrangement will provide future expanded distribution and new products and solutions to meet patients' needs in the surgical and wound care markets.
CellerateRX® Products are the only Activated Collagen® Peptides cleared by the FDA as a medical device for use on all acute and chronic wounds, except third-degree burns, and is offered in both powder and gel form.
As part of the transaction, the Company has an exclusive sublicense to distribute CellerateRX® Activated Collagen® Products into the wound care and surgical markets in the United States, Canada and Mexico. The term of the sublicense extends through August of 2028, with automatic one-year renewals through December 31, 2049, subject to termination during any renewal term by either party on six-months' notice. The exclusive sublicense is provided by an affiliate of Catalyst which owns an exclusive license for the production and distribution of the CellerateRX® Activated Collagen® Product line. WNDM is contributing into the Company the existing product inventories of WNDM along with its sales and operational functions and capabilities. Mike Carmena, while continuing to serve as CEO of WNDM Medical will also serve as the CEO of the Company. Ron Nixon, President and founder of Catalyst, will serve as Chairman of the Company.
Additionally, as part of the transaction, WNDM has issued a thirty (30) month promissory note to an affiliate of Catalyst in the principal amount of $1,500,000, with a 5% annual interest rate, which is convertible at Catalyst's option into shares of WNDM common stock at a conversion price of $.09 per share of common stock.
Catalyst currently has ownership interests in several companies in the healthcare industry including Rochal Industries, LLC, a San Antonio based research and development company with expertise in wound and skin care, Trilliant Surgical, LLC, a Houston based company that manufactures and distributes innovative podiatric implant products for the lower extremity market, and Triad Life Sciences Inc., a Memphis based emerging biotechnology company that develops, manufactures and distributes novel bioactive regenerative materials to address unmet market needs for cost-effective and efficacious therapies to treat acute and chronic wound conditions. Each of these companies will work with Cellerate, LLC to distribute CellerateRX® Activated Collagen® Products in new geographic markets within the United States, Canada and Mexico while providing additional cross-selling opportunities through new product introductions in the wound care, skin care, acute and post-acute markets.
"I am extremely excited to partner with The Catalyst Group", said Carmena. "Their proven track record of success along with their portfolio of complementary companies will provide the opportunity to expand the Company's market reach as well as add strategic, efficacious products to improve patient outcomes."
WNDM realized record sales for both the first and second quarters of 2018 with year-to-date sales of $4.2 million, up 38% compared to the first six months of 2017. The annual sales for 2017 were $6.3 million.
"Mike and his team have done an excellent job of expanding the use of CellerateRX® Products across the spectrum of acute and chronic wounds," said Nixon, "and we are pleased to be joining in their goal to benefit more patients with products that produce superior, efficacious outcomes."
About WNDM Medical Inc.
With its No. 1 goal of improving patient outcomes and lowering overall costs to the healthcare system, WNDM Medical Inc. develops, markets, and distributes biotechnology products to physicians, hospitals, and clinics. It has a strong history of developing long-term strategic partnerships with a focus on products that fuse nature and science with medicine. Its primary products are in the $11 billion U.S. consumable medical device market and the $1.5 billion biomaterials market. For more information, visit WNDM.com.
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WNDM Medical Inc.
About The Catalyst Group, Inc.
The Catalyst Group, Inc. was founded in 1990 and specializes in providing long-term value-added capital to middle-market businesses that span numerous industries including healthcare products and services. For more information, visit www.tcgfunds.com.
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The Catalyst Group, Inc.
Information about Forward-Looking Statements:
The statements in the press release that relate to the WNDM and/or the Company's expectations with regard to the future impact on 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, WNDM and/or the Company's actual results may differ materially from expected results. This document may contain forward-looking statements concerning WNDM and/or 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 WNDM's SEC filings, which could cause WNDM and/or the Company's actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by these statements. WNDM and the Company undertake no obligation to revise any of these statements to reflect the future circumstances or the occurrence of unanticipated events.
SOURCE: WNDM Medical Inc.