Union Securities Ltd. to Serve as Sole Lead Agent for Private Placement Offering
TORONTO, ONTARIO -- (MARKET WIRE) -- 12/11/09 -- Titan Medical Inc. (TSX VENTURE: TMD) is pleased to announce that it has agreed that Union Securities Ltd. will serve as the sole lead agent in connection with the previously announced private placement offering of units by Titan and that the offering will not be syndicated. The offering is for minimum gross proceeds of $3 Million (or such other amount as the company shall determine) and maximum gross proceeds of $5 Million. Each unit, to be issued at $0.40, will comprise one common share of Titan and a 1/2 warrant. A whole warrant shall entitle its holder to purchase one additional common share for $0.48 and shall expire 18 months following closing.
If the maximum proceeds are achieved, Titan has agreed to grant to the lead agent an over-allotment option to purchase up to an additional 2,500,000 units at a price of $0.40 per unit. The over-allotment 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. The Company has agreed to pay a cash commission at closing of 7% in respect of the gross proceeds from the sale of units under the offering and the over-allotment option. In addition, Titan will issue at closing a number of non-assignable compensation options equal to 7% of all units sold pursuant to the offering and the over-allotment option. Each compensation option will entitle the agent to purchase one unit at $0.40 at any time prior to the date that is 24 months from the closing date.
All securities to be issued under the offering, and the compensation option and the over-allotment option as well as the securities issuable upon exercise of such options, will be subject to resale restrictions for a period of 4 months from the closing date under applicable securities laws and the policies of the TSX Venture Exchange. The offering is subject to approval by 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 11, 2009