<SEC-DOCUMENT>0001654954-19-011507.txt : 20191007
<SEC-HEADER>0001654954-19-011507.hdr.sgml : 20191007
<ACCEPTANCE-DATETIME>20191007150248
ACCESSION NUMBER:		0001654954-19-011507
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20191001
ITEM INFORMATION:		Entry into a Material Definitive Agreement
FILED AS OF DATE:		20191007
DATE AS OF CHANGE:		20191007

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Sanara MedTech Inc.
		CENTRAL INDEX KEY:			0000714256
		STANDARD INDUSTRIAL CLASSIFICATION:	ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES [3842]
		IRS NUMBER:				592220004
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11808
		FILM NUMBER:		191140733

	BUSINESS ADDRESS:	
		STREET 1:		1200 SUMMIT AVE
		STREET 2:		SUITE 414
		CITY:			FORT WORTH
		STATE:			TX
		ZIP:			76102
		BUSINESS PHONE:		817-529-2300

	MAIL ADDRESS:	
		STREET 1:		1200 SUMMIT AVE
		STREET 2:		SUITE 414
		CITY:			FORT WORTH
		STATE:			TX
		ZIP:			76102

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	WOUND MANAGEMENT TECHNOLOGIES, INC.
		DATE OF NAME CHANGE:	20080611

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MB SOFTWARE CORP
		DATE OF NAME CHANGE:	19960805

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INAV TRAVEL CORPORATION
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>smti_8k.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">UNITED
STATES</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Washington,
D.C. 20549</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 16px">FORM
8-K</font></div>
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<font style="font-weight: bold; font-family: Arial; font-size: 7px"><font style="font-size: 13px">
C</font>URRENT <font style="font-size: 13px">R</font>EPORT</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Date of Report (Date of earliest event reported): October 1,
2019</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
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<font style="font-weight: bold; color: #000000; font-family: Times New Roman; font-size: 13px">
SANARA MEDTECH INC.</font></div>
<div style="text-align: center; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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name of registrant as specified in its charter)</font></div>
<div style="text-align: center; margin-left: 0px; text-indent: 0px; margin-right: 0px;"><font style="font-family: Times New Roman; font-size: 13px;">&#xA0;</font></div>
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<tr>
<td style="width: 34%">
<div style="text-align: center"><font>&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Texas</font></font></div>
</td>
<td style="width: 33%">
<div style="text-align: center"><font>&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">000-11808&#xA0;</font></font></div>
</td>
<td style="width: 33%">
<div style="text-align: center"><font>&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">59-2219994</font></font></div>
</td>
</tr><tr>
<td style="width: 34%">
<div style="text-align: center"><font>&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(State
or other jurisdiction of incorporation)</font></font></div>
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<div style="text-align: center"><font>&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(Commission
File Number)</font></font></div>
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<div style="text-align: center"><font>&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(I.R.S.
Employer Identification No.)</font></font></div>
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<div style="text-align: center"><font>&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">1200
Summit Avenue, Suite 414&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Fort
Worth, Texas</font></font></font></div>
</td>
<td style="width: 50%">
<div style="text-align: center"><font>&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">76102</font></font></div>
</td>
</tr><tr>
<td style="width: 50%">
<div style="text-align: center"><font>&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(Address
of principal executive offices)</font></font></div>
</td>
<td style="width: 50%">
<div style="text-align: center"><font>&#xA0; <font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">(zip
code)</font></font></div>
</td>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">
Registrant&#x2019;s telephone number, including area code:
(817)-529-2300</font></div>
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the appropriate box below if the Form 8-K filing is intended to
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under any of the following provisions:</font></div>
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communications pursuant to Rule 425 under the Securities Act (17
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communications pursuant to Rule 13e-4(c) under the Exchange Act (17
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Indicate
by check mark whether the registrant is an emerging growth company
as defined in in Rule 405 of the Securities Act of 1933
(&#xA7;230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (&#xA7;240.12b-2 of this
chapter).</font></div>
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<font style="font-family: Times New Roman; font-size: 13px"><font style="font-weight: bold">If an emerging growth company, indicate by
checkmark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the
Exchange Act.</font> <font style="font-family: Times New Roman">&#x2610;</font></font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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</div>
</div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
<div style="text-align: left; margin-left: 24px; margin-right: 0px; text-indent: 0px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Item
1.01 Entry into a Material Definitive Agreement.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">On
October 1, 2019, Sanara MedTech Inc. (&#x201C;Sanara&#x201D; or the
&#x201C;Company&#x201D;) executed an additional license agreement
with Rochal Industries, LLC, (&#x201C;Rochal&#x201D;) whereby Sanara
acquired an exclusive world-wide license to market, sell,
distribute, and further develop certain antimicrobial barrier film
and skin protectant products for use in the human health care
market utilizing certain Rochal patents and pending patent
applications (the &#x201C;License Agreement&#x201D;). Currently, the
products covered by the License Agreement are BIAK&#x14C;S&#x2122;
Antimicrobial Barrier Film and a skin protectant product with a
registered trademark pending. A director and indirect principal
shareholder of Sanara is also a director of Rochal, and indirectly
a significant shareholder of Rochal, and through the potential
exercise of warrants a majority shareholder. Another director of
Sanara is also a director and significant shareholder of
Rochal.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: justify; margin-left: 24px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">Key
terms of the License Agreement include:</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="margin-left: 48px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">1.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">In consideration
for the license, Sanara will pay Rochal $500,000 upon the earlier
of December 31, 2019 or the occurrence of specified Sanara
financing activities.</font></div>
</div>
</div>
<div style="margin-left: 48px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">2.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Subject to the
occurrence of specified Sanara financing conditions in 2020, Sanara
will also pay Rochal<font style="font-weight: bold; font-size: 13px">&#xA0;</font>$500,000, which
at Rochal&#x2019;s option may be in cash or Sanara Common Stock; or
a combination of cash and Sanara Common Stock.</font></div>
</div>
</div>
<div style="margin-left: 48px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">3.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Sanara will pay
Rochal a royalty of:</font></div>
</div>
</div>
<div style="margin-left: 96px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">a.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">4% of net sales of
licensed products in countries in which patents are
registered</font></div>
</div>
</div>
<div style="margin-left: 96px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">b.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">2% of net sales of
licensed products in countries without patent
protection.</font></div>
</div>
</div>
<div style="text-align: justify; margin-left: 72px; margin-right: 5px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
minimum annual royalty due to Rochal will be $50,000 beginning with
the first full calendar year following the year in which first
commercial sales of the products occur (the &#x201C;First Revenue
Year&#x201D;). The annual minimum royalty will increase by 10% each
subsequent calendar year up to a maximum amount of $75,000. The
minimum royalty applies for all products combined in this license
agreement.</font></div>
<div style="margin-left: 48px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">4.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Beginning with the
First Revenue Year, Sanara will pay an additional royalty based on
specific net profit targets related to the licensed products. Net
profits for the licensed products are defined as net sales, less
cost of goods sold (including royalties) and direct marketing and
selling expenses. The additional royalty will be 25% of the amount
of actual net profits in excess of the established net profit
targets, subject to a maximum of $500,000 for any calendar year.
The established net profit targets for each calendar year
are:</font></div>
</div>
</div>
<div style="margin-left: 96px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">a.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">First Revenue Year
- $1,500,000</font></div>
</div>
</div>
<div style="margin-left: 96px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">b.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Second revenue year
- $5,000,000</font></div>
</div>
</div>
<div style="margin-left: 96px; display: table">
<div style="display: table-row">
<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">c.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Third revenue year
- $8,000,000</font></div>
</div>
</div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">d.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Fourth revenue year
- $10,000,000</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">e.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Fifth revenue year
- $15,000,000</font></div>
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<div style="text-align: left; display: table-cell; width: 24px">
<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">f.</font></div>
<div style="text-align: justify; display: table-cell"><font style="font-family: Times New Roman; font-size: 13px">Beginning with the
sixth revenue year and for each calendar year thereafter, net
profit targets will be equal to the immediately preceding calendar
year&#x2019;s net profit target incremented by the greater of (1)
50% of the U.S. dollar growth in the amount of net profit in the
current year over net profit in the immediately preceding calendar
year, or (2) the percentage of overall growth of the market for the
category by which the licensed products are generally described.
Target net profit shall consist of the total net profit from all
the products combined in this license agreement.</font></div>
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<font style="font-family: Times New Roman; font-size: 13px">Unless
previously terminated or extended by the parties, the License
Agreement will terminate upon expiration of the last U.S. patent in
October 2033.</font></div>
<div style="text-align: justify; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">&#xA0;</font></div>
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px">
<font style="font-family: Times New Roman; font-size: 13px">The
foregoing summary of the License Agreement does not purport to be
complete and is qualified in its entirety by reference to the
License Agreement. Sanara expects to file a copy of the License
Agreement as an exhibit to its Quarterly Report on Form 10-Q for
its quarter ending September 30, 2019.</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">SIGNATURE</font></div>
<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<div><font style="font-family: Times New Roman; font-size: 10">&#xA0;</font></div>
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<font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Pursuant
to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.</font></div>
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<td colspan="2" rowspan="1" style="vertical-align: bottom; width: 38%;"><font style="font-weight: bold; font-family: Times New Roman; font-size: 13px">Sanara
MedTech Inc.</font></td>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">Date: <font style="font-family: Times New Roman; font-size: 13px;">October 7,
2019</font></font></font></div>
</td>
<td style="vertical-align: top; width: 3%; border-bottom: medium solid rgb(255, 255, 255);">
<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">By:&#xA0;&#xA0;</font></font></div>
</td>
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">/s/&#xA0;
<font style="font-family: Times New Roman; font-size: 13px;">Michael D.
McNeil</font></font></font></div>
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<div style="margin-left: 0px; margin-right: 0px; text-indent: 0px">
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<div style="text-align: left; margin-left: 0px; margin-right: 0px; text-indent: 0px"><font><font style="font-size: 13px; font-family: Times New Roman;">Name: <font style="font-family: Times New Roman; font-size: 13px;">Michael D.
McNeil</font> &#xA0;</font></font></div>
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<font><font style="font-size: 13px; font-family: Times New Roman;">Title:&#xA0;
<font style="font-family: Times New Roman; font-size: 13px;">Chief
Financial Officer</font> &#xA0;</font></font></div>
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