Updated with information from cadaver studies.
Titan Medical (CVE:TMD) said today it closed a $4 million private placement round with Longtai Medical and said last week it performed its 1st successful cadaver lab study with its Sport surgical robotic system.
The cadaver studies were performed by 2 robotic surgeons from the company’s surgeon advisory board, Titan Medical said.
“Both surgeons, as well as our engineering team, were quite pleased with the performance of the Sport surgical system. With these studies, we have documented that surgeons can successfully complete all of the tasks required to perform very complex procedures,” exec veep of clinical and regulatory affairs Dr. Dennis Fowler said in a press release.
“We are thrilled to have successfully completed our 1st cadaver studies. The positive procedure outcomes and compelling surgeon feedback give us confidence in Sport’s significant value proposition to patients and hospitals as we move forward through our commercialization process,” CEO John Hargrove said in prepared remarks.
The Toronto-based medical company floated approximately 4.3 million shares at 92¢ (CDN $1.23) to Longtai, which is the Canadian subsidiary of China’s Ningbo Long Hengtai International Trade Co.
Longtai imports and distributes high-end medical devices for multinational companies, Titan Medical said in a press release.
Titan granted Longtai exclusive rights to negotiate for exclusive marketing, sales and distribution for Titan’s SPORT surgical robotics system or 193 days.
Longtai paid $2 million as a deposit toward a distributorship agreement to be repaid if the companies do not enter the agreement in 183 days. Upon signing the agreement, Longtai agreed to purchase an additional $4 million in common shares .
If the companies successfully negotiate the distributorship agreement, Longtai said it will invest an additional $15 million to establish and support a Titan operations office and facility in the Asia Pacific region, as well as a training, sales and marketing programs for the Sport.
Last week, Titan Medical said it is plans to complete its 1st in-human Sport surgical system units during the 1st quarter of 2016 and announced a recently closed round of financing that brought in $8.6 million (CDN $11.5 million).
The company reported earnings from its 3rd quarter, ended on September 30, with losses growing to $10.9 million compared with $3.3 million during the same period in 2014. R&D costs were up for the company as well, growing from $3.1 million in its 3rd quarter in 2014 to $10.7 million this year.
The company said it closed a unit offering, bringing in a total $8.6 million for the company through a base offering of 8.1 million and over-allotment of an additional 1.2 million units sold at 92¢ (CDN $1.23) each.
The deal was made between Titan Medical and Octagon Capital Corporation, according to the press release.
