Ozop Surgical Corp (OTCMKTS:OZSC), a spinal surgical device provider, has agreed a licensing agreement with Spinal Resources Inc (SRI).
In a statement on Monday, Ozop said it will sell SRI’s Swedge product, an FDA approved pedicle screw system used to grip segments of the spine connected by a transition rod.
The West Palm Beach, Florida company will receive immediate revenue for Swedge sales, and it expects a $2 million per year run rate within the first 90 days.
The deal includes an option for Ozop to purchase SRI. If it does, any license fees, inventory purchases or other costs paid by Ozop could be knocked off the purchase price.
In addition to purchasing SRI’s existing inventory, Ozop also gets access to its product portfolio, which includes 3D-printed carbon fiber and polyetheretherketone technology. The company will also be able to sell its own products through SRI’s network of distributors.
“This relationship allows us to focus on developing a sustainable revenue strategy while continuing to drive innovation that treats disorders of the spine,” Ozop CEO Michael Chermak said in the statement. “The combined efforts will rapidly accelerate the sales efforts already in place through Spinal Resources.”
Ozop saw its shares slip 28% to below $0.04.
—Updated to include share price—
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