POLARITYTE, INC. (NASDAQ:COOL) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
On April 22, 2019, PolarityTE MD, Inc. (the Company), a subsidiary of PolarityTE, Inc., entered into a sublease agreement with Joseph M. Still Burn Centers, Inc., for 6,307 square feet of manufacturing, laboratory, and office space located at 3647 J. Dewey Grey Circle, Augusta, Georgia (the Facility). The Joseph M. Still Burn Center (the JMS Burn Center) is part of the Doctors Hospital complex in Augusta, Georgia.
The initial term of the sublease for the Facility is five years commencing April 22, 2019, and the Company has an option to renew for three years after the initial term and a second option to renew for an additional two years thereafter. The annual base rental rate during the initial term is $9,986, or a total of $119,833 per year, with a 3% annual increase as determined by a third-party fair market value analysis. In addition, the Company is obligated to pay (i) maintenance, repairs, replacements, and restorations to the Facility, (ii) its own utilities, and (iii) its share of operating expenses for the building based on the ratio of space leased by the Company to the total leasable square footage of the building.
The Company intends to use the Facility to establish a manufacturing node for SkinTE, with the potential to manufacture other regenerative tissue products in the Companys pipeline. We expect the manufacturing node at the facility will serve patients of the JMS Burn Center and the JMS Advanced Wound and Burn Clinic at Doctors Hospital, as well as patients of other medical facilities in the region.
This is the first manufacturing node we plan to develop for the production of SkinTE. Nodes are fully contained, scalable manufacturing facilities that the Company intends to build around the country in order to expedite the harvesting, manufacturing and deployment of SkinTE to patients. Selection criteria include proximity to large healthcare facilities and metropolitan regions with high patient volumes. The nodes employ the same high standards as PolarityTEs central manufacturing facility in Salt Lake City.
About POLARITYTE, INC. (NASDAQ:COOL)
PolarityTE, Inc., formerly Majesco Entertainment Company, is a technology company. The Company has developed, marketed, published and distributed software through online platforms. The Company develops applications for gaming on computers, handheld devices and game consoles. The Company is the owner of patent applications and know-how related to regenerative medicine and tissue engineering, as well as software applications used in diagnosis and treatment related to regenerative medicine. It seeks to develop and obtain regulatory approval for technology that will utilize a patient’s own tissue substrates for the regeneration of skin, bone, muscle, cartilage, fat, blood vessels and nerves. Its PolarityTE platform simplifies regeneration and allows cells to function naturally. The platform can be applied across all cells, tissues and composite structures. Its platform induces cell and tissue polarity, and creates functional tissue that mirrors natural development in the human body.