Titan Medical Inc. Completes Private Placement Offering
TORONTO, ONTARIO -- (MARKET WIRE) -- 12/23/09 -- Titan Medical Inc. (TSX VENTURE: TMD) is pleased to announce that it has completed its private placement offering resulting in the issue of 5,822,000 units for gross proceeds of $2,328,800. Each unit was issued at $0.40 and comprises one common share of Titan and a 1/2 warrant. Each whole warrant entitles its holder to purchase one additional common share of Titan for $0.48 and will expire June 23, 2011. The offering remains subject to acceptance by the TSX Venture Exchange.
Union Securities Ltd. acted as agent in connection with the offering. At closing, Titan paid the agent and members of the selling group aggregate cash commission of 7% of the gross proceeds from the offering. In addition, Titan issued to the agent and members of the selling group a number of non-assignable compensation options equal to 7% of all units sold pursuant to the offering. Each compensation option entitles its holder to purchase one unit at $0.40 at any time prior to the date that is 24 months from the closing date.
Titan has granted to the agent a purchase option to arrange for the purchase of up to 20% of the number of units that were sold in the offering at a price of $0.40 per unit. The purchase option may be exercised within 10 business days of the closing date, and the resulting purchase and sale of units shall be completed within 30 days of the closing date. Titan has agreed to pay the agent aggregate cash commission of 7% of the gross proceeds from the sale of units pursuant to the purchase option. In addition, Titan has agreed to issue a number of non-assignable compensation options equal to 7% of all units sold pursuant to the purchase option.
All securities issued under the offering, and the compensation options and the purchase option as well as the securities issuable upon exercise of such options and the warrants, will be subject to resale restrictions from the closing of the private placement offering until April 23, 2010 under applicable securities laws and the policies of the TSX Venture Exchange.
About Titan Medical Inc.
Titan Medical Inc. is focused on the development and commercialization of robotic surgical technologies. The Company is currently developing Amadeus®, a next generation 4-armed robotic surgical system, with the objective of enabling surgeons to remotely manipulate surgical instruments. Robotic surgery has developed over the past 10 years into a proven and growing method of treatment. The global robotic surgical market size is currently estimated to be $3.4 billion with potential for placement of 6,000 robotic surgical systems. The Company is researching and developing innovative technologies to empower surgeons to use robots in the operating room of the future.
Forward Looking Statements
This news release includes certain statements that may be deemed "forward-looking statements". All statements in this discussion other than statements of historical facts, that address future financings, acquisitions and events or developments that Titan expects, are forward-looking statements. Although Titan believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include the achievement of research and development milestones and objectives, market prices, regulatory approvals, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts: Titan Medical Inc. Craig Leon Chief Executive Officer 416-548-7522 (ext. 151)
Released December 23, 2009