The Toronto-based robot-assisted surgery technology developer entered into definitive agreements with a single healthcare-focused institutional investor for the sale of 18 million shares of its common stock at $1 per share and 9 million common share purchase warrants to net the gross proceeds of $18 million.
Titan intends to use the proceeds for general corporate purposes, including the resumption of the development of its single-port robotic surgical system, instruments and accessories. It also may go toward general working capital and capital expenditures.
According to a news release, the receipt of the proceeds will satisfy the second milestone requirement of its development and license agreement with Medtronic. H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.
In addition to the offering announcement, Titan Medical said today that it entered into a settlement agreement with Naglreiter Consulting, settling claims in the lawsuit styled Naglreiter Consulting LLC, d/b/a Naglreiter MDDO v. Titan Medical Inc. (Case No. 0:19-cv-62574) pending in the United States District Court for the Southern District of Florida.
Under the agreement, Titan will pay $1.05 million and Naglreiter will return certain personal property and related electronic data in its possession. The litigation will be dismissed with prejudice.
According to a news release, the settlement is “an important step” for Titan, which will turn its focus to the aforementioned single-port robotic surgical system development and the activities involved in its agreement with Medtronic.