Titan Medical Successfully Transitions to an IP Licensing Company
TORONTO, Ontario, June 20, 2023 (GLOBE NEWSWIRE) -- Titan Medical Inc. (“Titan” or the “Company”) (TSX: TMD; OTC: TMDIF) is pleased to provide this further corporate update on its successful transition to an IP licensing company.
Given the state of the capital markets such that emerging tech issuers have generally faced severe challenges in raising capital for pre-revenue and development stage projects, Titan has determined to focus on exploring opportunities to generate revenue from the licensing of its existing patent portfolio, and as previously announced:
- the Company has terminated its R&D operations and has substantially cut operating expenses including management compensation and G&A expenses; and
- the Company has signed two licensing agreements as previously disclosed with two major players in the surgical robotic industry for total upfront payments of USD$15.5 million.
We believe that the two licensing deals validate the importance and value of our patent portfolio and we continue to pursue discussions with other parties toward additional non-exclusive licensing arrangements.
With the influx of new cash from the two recent licensing agreements and the termination of our R&D operations, the Company continues to manage its payables and expects to meet its projected obligations well into 2024. As part of the transition away from R&D operations, we are also exploring opportunities for the sale of our testing and manufacturing equipment.
Finally, the Company will also explore opportunities for a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities (a “Business Combination”). Although the Company will not be limited to a particular industry or sector for purposes of consummating a Business Combination, the Company intends to focus primarily on biotech, medtech and other life sciences and technology sectors.
Paul Cataford, Interim CEO and Chair, stated, “We had expected a better outcome from our strategic review process and we were disappointed with the lack of any bids for the Company despite the significant efforts in support of the process from our management and board and our financial advisor. However, we are very pleased with the recent developments noted above which have allowed us to place the Company on a much stronger financial footing. Under the circumstances, our Executive Team and Board have performed well and have generated surprisingly good results.
It is a pleasure and a privilege to serve with such a dedicated and hard-working Board and Management Team and I reiterate my appreciation to them as well as to our former management colleagues who were instrumental in this period of transition.”
The Company remains dedicated to continued shareholder engagement and we look forward to the upcoming annual meeting.
About Titan Medical
Titan Medical Inc. (TSX: TMD; OTC: TMDIF), a medical technology company headquartered in Toronto, Ontario, has developed an expansive patent portfolio related to the enhancement of robotic assisted surgery (RAS), including through a single access point, and is currently focused on evaluating new opportunities to further develop and license its intellectual property.
Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward-looking statements” within the meaning of applicable Canadian and U.S. securities laws, which reflect the current expectations of management of the Company’s future growth, results of operations, performance and business prospects and opportunities. Forward-looking statements are frequently, but not always, identified by words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “potential for” and similar expressions, although these words may not be present in all forward-looking statements. Forward-looking statements that appear in this release may include, without limitation, references to: the Company evaluating new opportunities to further develop and license its intellectual property and to generate revenue; validation of the importance and value of our patent portfolio; the Company continuing to manage its payables, and its expectation to meet its projected obligations well into 2024; the Company’s exploring opportunities for the sale of its testing and manufacturing equipment; the Company’s exploration of opportunities for a Business Combination; placement of the Company on a much stronger financial footing; and the Company’s dedication to continued shareholder engagement and the upcoming annual meeting.
These forward-looking statements reflect management’s current beliefs with respect to future events and are based on information currently available to management that, while considered reasonable by management as of the date on which the statements are made, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in actions, events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking statements. Forward-looking statements involve significant risks, uncertainties and assumptions and 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. Such factors and assumptions include, but are not limited to, the Company’s ability to retain key personnel; its ability to execute on its business plans and strategies, including the Strategic Transition; its ability to continue to license some or all its intellectual property to third parties and receive any material consideration and other factors listed in the “Risk Factors” section of the Company’s Annual Information Form for the fiscal year ended December 31, 2022 (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 and the Company has attempted to identify important factors that could cause actual actions, events, conditions, results, performance or achievements to differ materially from those described in forward-looking statements, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements. Except as required by law, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Accordingly, investors should not place undue reliance on forward-looking statements. All the forward-looking statements are expressly qualified by the foregoing cautionary statements.
Chief Financial Officer
Released June 20, 2023