It been several weeks since the last time we talked about TITAN MEDICAL INC COM NPV (OTCMKTS:TITXF) here on Street Register. At the time, the company had just reported on the successful completion of the world’s first gynecologic, colorectal and urologic single port robotic procedures using its SPORT Surgical System.
Titan is in the business of developing minimally invasive surgery (MIS) implements, and the SPORT Surgical System is comprised of a surgeon-controlled patient cart that includes a 3D high definition vision system and multi-articulating instruments for performing these MIS procedures.
The topic we’d like to cover today is a round of Canadian funding for the SPORT system that TITAN MEDICAL INC COM NPV (OTCMKTS:TITXF) has detailed in its latest press release.
Titan revealed that it has priced its marketed offering of units of the Company for minimum gross proceeds of CDN $13,000,000 and maximum gross proceeds of CDN $15,000,000. Pursuant to the Offering, Titan will issue Units at a price of CDN $0.50 per Unit. Each Unit is comprised of one common share of the Company and one Common Share purchase warrant, exercisable for one Common Share at a price of CDN $0.60, for a period of 5 years following the closing of the Offering.
The Offering will be undertaken on a best efforts basis pursuant to the terms and conditions of an agency agreement to be entered into between the Company and Bloom Burton Securities Inc. In connection with the Offering, the Agent will be paid a cash commission equal to 7.0% of the gross proceeds of the Offering and it will be issued that number of non-transferable broker warrants exercisable for Common Shares equal to 7.0% of the number of Units sold in the Offering.
In addition, the Units may also be offered for sale in the United States, by or through United States registered broker-dealers appointed by the Agent as sub-agents, and in certain offshore jurisdictions, in each case under available exemptions from the prospectus and registration requirements of applicable securities laws. The Company intends to file an amended and restated preliminary short form prospectus with the securities regulatory authorities in each of the provinces of Ontario, British Columbia and Alberta, to provide additional details concerning the Offering, including pricing information.
The net proceeds of the Offering will be used to fund continued development work in connection with the Company’s SPORT Surgical System, as well as for working capital and other general corporate purposes. (Source: Marketwired)
It should be important in this case to reiterate as noted above, that while Titan is a dually-quoted stock (TSX and OTCQB), its activities are based in Canada and thus the offering isn’t open to American investors without a specially obtained exemption.
Where we feel it is relevant to domestic traders that do not receive exemption, however, is the price at which the offering is being executed. The common shares are to be bought for CAD .50, which at the present conversion rate, is equal to 0.39 USD. Shares of TITXF are currently trading just below there in the mid-.30’s on the OTC, which would seem to suggest the company’s confidence that its share price is on firm footing. We’ll be sure to continue to keep tabs on the story. Keep it locked to Street Register for updates, and we’ll deliver important developments on TITXF as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in TITXF stock, short or long.