Surgalign enters agreement to sell global hardware, biologics business

Surgalign Holdings (SRGA) announced that the Company has entered into an asset purchase agreement to sell substantially all of its U.S. hardware and biomaterials assets and the equity interests in non-Debtor entities related to the Debtors’ hardware business outside of the U.S. to Xtant Medical (XTNT) for $5.0M. The sale will be effectuated through the chapter 11 proceedings initiated by the Company and certain of its subsidiaries, who elected to le voluntary petitions under chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. As part of the chapter 11 proceedings, the Company also filed a motion seeking authorization to pursue an auction and sale process under section 363 of the U.S. Bankruptcy Code pursuant to which Xtant will be designated as the stalking horse bidder. The proposed sale process also encompasses the Company’s other assets that are not the subject of the Asset Purchase Agreement. The Company has filed a series of motions with the Bankruptcy Court seeking to ensure the continuation of normal operations during this process. The Company believes that it has sufficient liquidity to conduct its businesses in an uninterrupted manner and fund the chapter 11 proceedings, including the sale of its assets.