FORT WORTH, Texas, Nov. 30, 2011 /PRNewswire/ -- Wound Management Technologies, Inc., (OTCQB: WNDM | WNDM.PK) a leader in the advanced wound care solutions market, today announced that it had signed a letter of intent (LOI) to acquire Juventas, LLC. Fort Worth, TX-based Juventas, controlled by former Biomet Texas affiliates Bryant Gaines and Jeff Ott, operates a nationwide distributor network. Juventas products are used primarily by medical specialists in both surgical, non-surgical therapy and regenerative medicine. The acquisition would be an all-stock deal that would result in the owners of Juventas obtaining 12.5 million shares of WNDM at closing, the ability to earn additional shares based on revenue targets increasing the number of shares to 22.5 million shares, and representation on the WNDM Board of Directors. Closing of the acquisition is subject to a number of conditions, including, but not limited to, the audit of Juventas being completed by the first quarter of 2012.
Transaction Adds Financial Strength and Sales Force
The Transaction will allow for Revenue Growth by acquiring Juventas, which will immediately position it to create greater value for its shareholders and allow the Company to manage its cash flow. It will allow both companies to combine their revenue streams to increase sales efforts and focus. The combined companies will be able to launch products into the market more effectively with Juventas having over 25 years experience in these markets. Also this will immediately allow WNDM to have direct access to the Juventas Distributor Network.
Juventas is a successful company with a substantial commission-based sales force focused on advancement in the biologics and regenerative medicine. Both parties believe there is significant revenue and cost synergies they will be able to achieve as a combined company to significantly expand sales and profits for Wound Management.
Acquisition Provides New Management
As part of the agreement, Juventas principals Jeff Ott and Bryant Gaines have agreed to provide their management services to WNDM. Juventas COO Bryant Gaines has been named COO of Wound Management effective immediately. He will work with CEO Scott Haire and President Deborah Hutchinson to integrate the Juventas distribution network into WNDM and plan the strategic direction of the combined companies.
According to Bryant Gaines, "Juventas chose to be acquired by Wound Management because of the opportunities we see in the combined company. We know that with WNDM's proven products and our proven distribution practices, growth will be accelerated at a rate WNDM has not previously experienced. We are currently evaluating additional core products to add to our current offering for 2012 along with ancillary products to complement our existing product offerings."
"Bryant Gaines and I are excited to become a key part of the WNDM Management team," added Jeff Ott, Juventas President & CEO. "The synergy in the acquisition is in the leveraging of past managerial experience in Medical Device distribution with the near limitless potential of CellerateRX and the other product lines developed by Wound Management. Both parties in this acquisition will define success by how well and how quickly we penetrate markets and build shareholder value."
"Goal is to Build Shareholder Value"
"The agreement to acquire Juventas is a watershed event for Wound Management Technologies," according to Chairman and CEO Scott Haire. "The marrying of our advanced wound care products with the superior medical device distribution network developed by Jeff Ott and Bryant Gaines at Juventas creates a value-driven enterprise for a fast growing public company and fully aligns all parties on increasing value. The deal is driven by one goal: to build long-term WNDM shareholder value by making CellerateRX and our other product lines the leading products in their respective markets. Jeff and Bryant, based on their previous relationships with major medical device manufacturers and other major players in the market, also have the ability to open many doors to further expedite business opportunities and grow revenue."
Additional information concerning the Acquisition Letter of Intent and other related agreements can be found in Wound Management Technologies filings on the Securities and Exchange Commission EDGAR system website http://www.sec.gov/. Please read all related documents prior to making any investment decision based upon the press release above.
About Wound Management Technologies, Inc.
Wound Management Technologies, Inc. is an emerging commercial stage company with its primary products in the $5B worldwide advanced wound care market. Wound Management's primary focus is the distribution of its unique, patented collagen product, CellerateRX®, which is FDA, cleared. Wound Management has other advanced biotech products in development including a patented resorbable bone wax line that is in late stages of development, as well as a subsidiary focused on technology for secure healthcare data collaboration and storage. More information can be found on the company's web sites: http://www.wmgtech.com and http://www.celleraterx.com.
About Juventas, LLC
Juventas, led by Bryant Gaines and Jeff Ott, is a former affiliate of Biomet Texas, Ltd., the largest Biomet Distributor. Juventas and its affiliates market products used primarily by medical specialists in both surgical and non-surgical therapy and regenerative medicine. Headquartered in Fort Worth, Texas, Juventas currently distributes products all over the United States.
Safe Harbor Statement:
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.
For Wound Management Technologies Shareholder Information please call (917) 974-9872 or visit http://www.wmgtech.com
|SOURCE Wound Management Technologies, Inc.|
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