Titan Medical Reports Financial Results for Third Quarter Ended September 30, 2016
TORONTO, ON -- (Marketwired) -- 11/08/16 -- Titan Medical Inc. (TSX: TMD)(OTCQX: TITXF), a medical device company focused on the design and development of a robotic surgical system for application in minimally invasive surgery (MIS), today announced financial results for the three and nine months ended September 30, 2016. All financial results are reported in US dollars, unless otherwise stated. The unaudited condensed interim financial statements and management's discussion and analysis for the period ended September 30, 2016 may be viewed on SEDAR at www.sedar.com.
"The third quarter was a very eventful period. We conducted a successful raise in the capital markets that closed September 20, 2016 which has enabled Titan to re-engage with our principal development suppliers. Our team is now focused on getting them back to their full development modes. We remain committed to accomplishing our next major milestones towards achieving submission of our 510(k) application to the FDA," commented John Barker, Interim Chief Executive Officer.
"I have been operating as Interim CEO for the past four weeks while Martin Bernholtz assumed the position of permanent Chair of the Board of Directors. My main focus is to find and recommend to the Board of Directors a new CEO as soon as is practically possible. The Board is also actively seeking new board members with successful business track records especially in the healthcare field," added Mr. Barker.
Third Quarter Operational Highlights
- On August 8, 2016, the Company announced that it exhibited its SPORT™ Surgical System at the World Robotics Gynecology Congress in New York, August 5th and 6th.
- On August 24, 2016 Titan announced that it had extended the rights granted to Longtai Medical Inc. to negotiate an exclusive distribution agreement. The parties have agreed to modify their previous three-month extension to monthly progress reviews.
- On September 6, 2016 Titan announced that Dr. Rafael Sanchez-Salas presented an over view of the SPORT™ Surgical System, at the 13th meeting of the European Association of Urology Robotic Urology Section in Milan Italy on September 14 -16.
- Cash and cash equivalents at September 30, 2016 totaled $7,399,331, compared to $11,197,573 at December 31, 2015.
- Net and comprehensive loss for the three and nine months ended September 30, 2016 was $1,659,863 and $21,315,131, which included a gain on change in fair market value of warrants of $3,277,044 and $4,623,658, respectively compared to a net and comprehensive loss of $10,899,586 and $28,276,677 for the three and nine months ended September 30, 2015.
- The Company's research and development expenses for the three and nine months ended September 30, 2016 were $3,429,550, and $21,527,968, respectively, compared to $10,694,838 and $25,110,409 for the three and nine months ended September 30, 2015.
- The decrease in research and development costs and net and comprehensive loss for the three and nine months ended September 30, 2016 compared to September 30, 2015 was possible due to the most recent equity financings completed in the first quarter of 2016 as well as the fourth quarter of 2015.
- On September 20, 2016 Titan announced that it closed its previously announced public offering pursuant to an agency agreement dated September 13, 2016 between the Company and Bloom Burton & Co. Limited and Echelon Wealth Partners Inc. The Company sold 17,083,333 units at a price of CDN $0.60 per unit for gross proceeds of CDN $10,250,000 (US $ 7,749,000).
- On October 27, 2016 the Company announced that the over-allotment option to the Company's September 20, 2016 offering was had been partially exercised and the Company sold an additional 2,030,000 units at the offering price for additional gross proceeds of CDN $ 1,218,000 (US $ 913,500).
About Titan Medical Inc.
Titan Medical Inc. is a Canadian public company focused on the design and development of a robotic surgical system for application in minimally invasive surgery ("MIS"). The Company's SPORT™ Surgical System, currently under development, includes a surgeon-controlled robotic platform that incorporates a 3D high-definition vision system and multi-articulating instruments for performing MIS procedures through a single incision. The surgical system also includes a surgeon workstation that provides a surgeon with an advanced ergonomic interface to the robotic platform for controlling the instruments and provides a 3D high-definition endoscopic view of inside a patient's body. The SPORT™ Surgical System is designed to enable surgeons to perform a broad set of surgical procedures for general abdominal, gynecologic, and urologic indications. For more information, visit the Company's website at www.titanmedicalinc.com.
This news release contains "forward-looking statements" which reflect the current expectations of management of the Company's future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as "may", "would", "could", "will", "anticipate", "believe", "plan", "expect", "intend", "estimate", "potential for" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, without limitation, those listed in the "Risk Factors" section of the Company's Annual Information Form dated March 30, 2016 (which may be viewed at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this news release. These factors should be considered carefully, and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in the news release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements.
Titan Medical Inc.
Interim Chief Executive Officer
(416) 548-7522 (ext. 151)
EVC Group, Inc.
Source: Titan Medical Inc.
Released November 8, 2016