Wound Management Technologies Inc. closed the acquisition of the remaining 50% shares in Cellerate LLC from CGI Cellerate RX LLC, an affiliate of The Catalyst Group Inc., in exchange for 1,136,815 preferred shares.
Cellerate, which distributes two products for wound care, now operates as the wholly owned subsidiary of Wound Management, doing business as WNDM Medical.
Each series F preferred share of Wound Management issued for the transaction can be converted into 200 common shares of the company. The preferred shares will hold voting rights equal to the total number of common shares after conversion.
According to a March 21 filing by Wound Management, these preferred shares will have a higher priority than its common shares at the time of payment of dividends and distribution of assets. In case of liquidation, holders of the preferred share will get a preference of $5 apiece.
In line with the transaction, CGI founder and managing partner Ron Nixon was made the board member of Wound Management.
Fort Worth, Texas-based Wound Management develops, markets, and distributes wound care products based on collagen — a structural protein found in skin and other connective tissues.