Exhibit 99.1
Surgalign Successfully Completes Auction and Names Successful Bidders For Asset Sales
DEERFIELD, Ill., July 28, 2023 Surgalign Holdings, Inc., (OTC: SRGAQ) (Surgalign or the Company), a global medical
technology company focused on elevating the standard of care by driving the evolution of digital health, today announced that following a competitive court-supervised marketing and sale process, including a competitive auction, the Company has
selected Xtant Medical Holdings, Inc. (Xtant) as the successful bidder for its hardware and biologics assets and Augmedics, Inc. as the successful bidder for its digital health assets (Augmedics and together with Xtant, the
Successful Bidders). The sale and marketing process, including the auction, was conducted in accordance with bidding procedures approved by the United States Bankruptcy Court for the Southern District of Texas, Houston Division, where
the Companys chapter 11 cases are currently pending. The Official Committee of Unsecured Creditors participated in the auction as a consultation party.
Xtants bid for the hardware and biologics assets consists of a cash purchase price of $5 million and the assumption of certain liabilities, as set
forth in the asset purchase agreement. In addition, Augmedicss bid for the digital health assets consists of a cash purchase price of $900,000 and the assumption of certain liabilities, as set forth in the asset purchase agreement. Both of the
Successful Bidders bids maximize the value and minimize the remaining duration of the Companys chapter 11 proceedings by providing a clear path forward for the Company to consummate a chapter 11 plan and return value to its stakeholders.
Terry Rich, President and Chief Executive Officer of Surgalign stated, We are pleased to have concluded the sale process and believe with Xtant and
Augmedics, our technology and its potential will live on. I cannot thank our customers and partners enough for their support through this process. Further, I want to acknowledge the entire Surgalign team for their unwavering commitment throughout
the years, and for their ongoing passion to develop the best solutions to help drive better patient outcomes.
The applicable asset purchase
agreements between the Successful Bidders and the Company will be presented for approval to the Bankruptcy Court at the sale hearing set for August 8, 2023. The Successful Bidders and the Company will work to close the transactions promptly
following approval of the sales by the Bankruptcy Court.
Additional information about Surgaligns chapter 11 proceedings is available through the
Companys claims agent Kroll Restructuring Administration LLC (Kroll). Interested parties can view documents by visiting https://restructuring.ra.kroll.com/surgalign, or by calling the toll-free hotline at +1 (833) 939-6015 or for calls originating outside the U.S., by calling +1 (646) 440-4843. Inquiries can also be sent directly to Kroll at surgaligninfo@ra.kroll.com.
White & Case LLP is serving as the Companys legal counsel, Alvarez & Marsal Securities, LLC is serving as investment banker, and
Alvarez & Marsal North America, LLC is serving as financial advisor to the Company.
About Surgalign Holdings, Inc.
Surgalign Holdings, Inc. is a global medical technology company committed to the promise of digital health to drive transformation across the surgical
landscape. Uniquely aligned and resourced to advance the standard of care, the company is building technologies physicians and other health providers will look to for what is truly possible for their patients. Surgalign is focused on developing
solutions that predictably deliver superior clinical and economic outcomes. Surgalign markets products throughout the United States and in approximately 40 countries worldwide through an expanding network of top independent distributors. Surgalign
is headquartered in Deerfield, IL, with commercial, innovation and design centers in San Diego, CA, Warsaw and Poznan, Poland, and Wurmlingen, Germany. Learn more at www.surgalign.com and connect on LinkedIn and Twitter.
Forward Looking Statement
This press release contains
forward-looking statements based on managements current expectations, estimates and projections about our industry, our managements beliefs and certain assumptions made by our management, and such forward-looking statements include
(among others) statements regarding anticipated future financial and operating performance (including forecasted full-year revenue and number of HOLO sites secured), product rationalization and expense reduction initiatives and the results thereof,
potential third party financing and anticipated cash needs. Words such as anticipates, expects, intends, plans, believes, seeks, estimates, variations of such words
and similar expressions are intended to identify such forward-looking statements. The forward-looking statements are not guarantees of future performance and are based on certain assumptions including general economic conditions, as well as those
within the Companys industry, and numerous other factors and risks identified in the Companys most recent Form 10-K, 10-Q and other filings with the SEC. Our
actual