Issuer:
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Titan Medical Inc. (the “Company”).
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Offering:
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8,335,000 units of the Company (the “Units”) for aggregate
gross proceeds of $20,004,000 (which amount does not include the exercise of the
Over-Allotment Option) (the “Offering”).
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Issue Price:
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$2.40 per Unit (the “Issue Price”).
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Offered Securities:
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Each Unit consists of one common share of the Company (a “Common
Share”) and one half (1/2) of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will be exercisable to
acquire one Common Share for a period of 24 months following the closing of the Offering at an exercise price of $3.00 per share.
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Form of Offering:
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Bought deal by way of short form prospectus pursuant to NI 44-101 in each of the provinces British Columbia, Alberta, and Ontario (collectively, the “Offering Jurisdictions”), by way of private placement in the United States, or to or for the account or benefit of U.S. Persons, solely pursuant to an
exemption from the registration requirements of the U.S. Securities Act, and applicable state securities laws, and in such other jurisdictions outside of Canada and the United States as are agreed to by the Company and the Underwriters
provided that sales into such jurisdictions will not give rise to any registration or continuous disclosure obligations in such jurisdictions.
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Over-Allotment Option:
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The Company has granted the Underwriters an Over-Allotment Option, exercisable at any time and from time to time for a period of 30
days following closing, to purchase at the Issue Price up to such number of additional Units and/or Warrants as is equal to 15% of the number of Units sold pursuant to the Offering.
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Listing:
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The Company shall use best efforts to obtain the necessary approvals to list the Common Shares comprising of the Units (including any additional Units),
Common Shares underlying the Warrants (including any additional Warrants) and Common Shares underlying any broker warrants on the Toronto Stock Exchange, which listing shall be conditionally approved prior to the Closing Date subject only to
customary post-closing listing conditions.
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Standstill:
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The Company has agreed that for a period of 90 days after the Closing Date, it will not, without the written consent of Bloom
Burton, on behalf of the Underwriters, issue, any shares or any securities convertible into or exchangeable for shares of the Company except (i) in connection with the exchange, conversion or exercise of existing outstanding securities or
existing commitments to issue securities, (ii) in connection with an arm’s length acquisition, or (iii) pursuant to the grant of stock options or other compensation securities exercisable or convertible into shares of the Company pursuant to
any long term incentive plan.
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Lock-Up:
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The Company’s executive officers and directors will also agree, prior to Closing, not to sell any common shares or securities
exchangeable or convertible into common shares of the Company for a period of 90 days following the Closing Date without Bloom Burton’s prior written consent, on behalf of the Underwriters, such consent not to be unreasonably withheld.
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Eligibility:
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The Common Shares and Warrants comprising the Units (including additional Common Shares and additional Warrants that are issued upon the exercise of the
Over-Allotment Option) will be qualified investments under the Income Tax Act (Canada) for RRSPs, RESPs, RRIFs, RDSPs, DPSPs, and TFSAs.
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Use of Proceeds:
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The net proceeds of the Offering will be used to fund the development of the Company’s robotic surgical technologies and general working capital.
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Commission:
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7.0% cash fee plus that number of broker warrants equal to 7.0% of the Units sold under the Offering (including Units sold pursuant to the exercise of the
Over-Allotment Option), each entitling the holder to acquire one Common Share at US$3.75 for a period of 24 months after the Closing Date.
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Closing Date:
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On or about February 23, 2021 (the “Closing Date”) or such other date as the Lead Underwriter
and the Company may agree.
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Underwriter:
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Bloom Burton Securities Inc.
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