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LONGTAI MEDICAL AGREES TO CONVERT TITAN MEDICALS DISTRIBUTORSHIP DEPOSIT TO EQUITY
TORONTO (August 1, 2017) Titan Medical Inc. (TSX: TMD) (OTCQB: TITXF) (Titan or the Company), a medical device company focused on the design, development and commercialization of a robotic surgical system for application in minimally invasive surgery (MIS), announces an agreement with Longtai Medical Inc. (Longtai) for the conversion of Longtais US$2.0 million distributorship deposit to equity (the Offering). This deposit was made in relation to a letter agreement dated October 30, 2015 providing an exclusivity period to negotiate distribution rights to Titans robotic surgical system in China and possibly Southeast Asia, and previously was to be refunded in full to Longtai.
Under the terms of the subscription agreement dated July 31, 2017 between Titan and Longtai, Titan will issue to Longtai 16,892,000 units (Units) at a price of CDN$0.15 per Unit. Each Unit will consist of one common share (Common Share) and one common share purchase warrant (Warrant), with each Warrant exercisable for one Common Share at an exercise price of CDN$0.20 per Warrant for 60 months from the closing of the Offering.
David McNally, Chief Executive Officer of Titan, said, We are very pleased to have reached this agreement with Longtai, which conserves our cash and provides them with an equity ownership position in Titan. Longtai will become our largest shareholder and also is a valued strategic partner as we anticipate expansion into China and Southeast Asia following the introduction of SPORT Surgical System in the United States and Europe.
Ms. Feng Ting Ling, Director and Chief Executive Officer of Longtai, said We are very excited to become Titan's largest shareholder and a long-term strategic partner. We look forward to working with Titan in the future development of the China and Southeast Asia markets.
The closing of the Offering is subject to receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange. All securities issued pursuant to the Offering will be subject to a four-month hold period in accordance with applicable Canadian securities laws.
About Titan Medical Inc.
Titan is focused on the design and development through the planned commercialization of a robotic surgical system for use in MIS. The Companys SPORT Surgical System, currently under development, includes a surgeon-controlled robotic platform that features multi-articulating instruments for performing MIS procedures through a single incision. The surgical system also includes a 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 inside a patients body. The SPORT Surgical System is designed to enable surgeons to perform a broad set of general abdominal, gynecologic and urologic procedures. For more information, visit the Companys website at www.titanmedicalinc.com.
Forward Looking Statements
This news release contains forward-looking statements which reflect the current expectations of management of the Companys 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, including statements with respect to the use of the net proceeds of the Offering and the anticipated listing of the Common Shares on the TSX, reflect managements 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 Companys 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 Companys Annual Information Form dated March 31, 2017 (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.
|LHA Investor Relations
|Kim Sutton Golodetz
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