Umbra Applied Technologies Group, Inc (OTCMKTS:UATG) on May 19, 2023, announced reaching an agreement with a strategic capital partner for supporting the growth of the subsidiary Ossifix Orthopedics. The private equity firm, which specializes in the medical field, is focused on providing strategic growth capital and works with existing management for increasing sales.
UAT Group Reached Agreement with Strategic Capital Partner
The new partner will be a nine percent stakeholder in Ossifix Orthopedics and give about $2 million in funding capital. The firm will also give additional value such as investors and relationships for including an extensive portfolio of medical facilities, surgeons, and knowledgebase. This will assist Ossifix to expand sales and marketing base.
Chief Financial Officer, Thomas Crom said that though it lowers ownership in Ossifix, it will augment the company’s capability to move ahead without any dilution to UATG’s shareholders. Crom added that the transaction shows the creative ways UATG can fund subsidiaries without diluting the present shareholders. The CFO added that the funding is complex as well as time-consuming but shows Ossifix’s intrinsic value is recognized.
UAT Group Chairman, Alex Umbra said that UAT Group stands is willing to support all the subsidiaries for capitalizing on values created together. Umbra added that the new relationship will both give strategic capital but will also support growth objectives to bolster shareholder value as well as streamline balance sheet debt.