Titan Medical (TSE:TMD) said yesterday that it hopes to raise between $8 million and $12 million via an overnight offering it plans to use to restart the development program for its Sport robot-assisted surgery platform.
Toronto-based Titan Medical said the offering, priced at 46.1¢ (C60¢) per unit, will involve between nearly 17.1 million and 26.8 million units. Each unit consists of a share of stock and a 5-year warrant to buy another share at 57.6¢ (C75¢). The gross proceeds would be between C$10.3 million and C$16.1 million, or $7.9 million and $12.3 million.
The agents on the flotation, Bloom Burton & Co. and Echelon Wealth Partners, are due a 7% cash commission, plus 7.0% of the warrants. The offering also includes a 30-day over-allotment option for 15% of the units sold, at the same price or at 3.8¢ (C5¢) per over-allotment warrant. The deal is expected to close Sept. 20.
Titan needs the cash to re-start the Sport program, which has been on hold since mid-August when the outside product developers suspended development until the company can cover its bills; adding insult to injury, a planned $16.0 million equity investment from Shanghai JuGu Equity Investment Fund, originally slated to close June 30 and extended to August 15, failed to materialize.
Executive vice president for clinical & regulatory affairs Dr. Dennis Fowler resigned effective August 31.
($1 = C$1.302)