Fuse Medical, Inc. (OTC: FZMD) (“Fuse” or the “Company”) announced today that it signed a non-binding Letter of Intent (“LOI”) to purchase all of the outstanding membership units of CPM Medical Consultants, LLC (“CPM”), a privately-owned national distributor of medical device implants and biologics.
CPM is a stocking distributor with a broad portfolio of orthopedic implants for total joint reconstruction, sports medicine, internal and external fixation products for extremities, and full spinal implants and instrumentation. CPM also offers an extensive product catalog of biologics, which include human allograft with cell based products, regenerative tissue, and amniotic fluids to augment all types of surgical procedures.
CPM is owned and controlled by the Company’s Chairman of the Board of Directors, Mark W. Brooks, and is the Company’s current principal supplier.
Although no binding obligation will be created until the execution of a definitive purchase agreement, the Company and the members of CPM are currently negotiating the definitive purchase agreement with a targeted fourth quarter close date.
Christopher C. Reeg, the Company’s Chief Executive Officer commented, “The acquisition of CPM would be the initial step for Fuse to take in becoming a viable national entity within this highly competitive space. We are delighted the Fuse Board of Directors approved the nonbinding LOI and especially appreciate the hard work and dedication of the independent Special Committee of the Board of Directors to date.”
“We are thrilled with the prospects a combined Fuse and CPM strategic growth platform would offer,” Mr. Brooks added.