The purchase price will be paid in two installments, $7 million at closing and $3 million six months after closing. At the election of the company, up to $3 million of the purchase price can be paid in company common stock.
The acquisition of Bio Med is expected to give Uluru additional complementary products, manufacturing, product development and other resources along with a commercial base to more rapidly develop a strong presence in the wound and burn care markets.
The company plans to fund the acquisition through internally generated funds supported by revolving and term debt. The closing of the acquisition is subject to customary closing conditions, including shareholder approval by Bio Med.
Kerry Gray, president and CEO of Uluru, said: “This acquisition will give us additional resources to more rapidly penetrate the burn and wound care markets with Altrazeal as Bio Med has extensive relationships in these markets and is a recognized and well respected company in this field.”