Under the terms of the agreement, Misonix would issue approximately 5.7 million new shares to Solsys unitholders. Following the completion of the transaction, Misonix shareholders are expected to own 64% of the combined entity immediately prior to the closing and Solsys unitholders hold 36% ownership.

Upon closing, Misonix will also assume Solsys’ outstanding secured debt of approximately $20m. .

The transaction is expected to considerably broaden the Misonix market through wound care solutions that are complementary to its existing products. The combined company is anticipated to achieve revenue growth in excess of 20% per annum over the next several years.

Solsys is expected to achieve sales of approximately $32m in calendar 2019, while the, the pro forma company is expected to generate over $80m sales in fiscal 2020.

Misonix president and chief executive officer Stavros Vizirgianakis said: “We have known the team at Solsys for over two years and have been impressed in their ability to grow their revenue meaningfully during that time. The acquisition of Solsys Medical is a transformative event for Misonix and represents a strategically and financially compelling growth opportunity for the Company and for our shareholders.

“Solsys and its leading wound treatment application, TheraSkin, is highly complementary to Misonix’s existing wound debridement solution, SonicOne. As a result, the combined entity will be ideally positioned to establish a new standard of care in the growing chronic wound care market through what we view as the best-in-class wound treatment solution.”

The transaction has been approved by the boards of directors of both companies and is expected to be completed in the third quarter of calendar year 2019.

The completion of the acquisition and the issuance of shares are subject to the approval by Misonix shareholders.

Solsys markets an advanced wound care product under the brand name TheraSkin, a cellular and tissue-based product for regenerative wound healing designed to help healthcare professionals treat difficult-to-heal chronic wounds.