Titan Medical announced today that it entered into a settlement agreement after a dispute with an unnamed contract manufacturer.
Toronto-based Titan agreed to pay the contractor $2 million to settle the dispute, according to a news release. Its final payment installment is set to be made on or before June 24, 2024. Upon the receipt of the full $2 million, Titan expects the contractor to deliver outstanding material, inventory and works-in-progress.
While Titan offered no further details on the dispute or the agreement, it comes as the company pursues its planned merger with Conavi Medical.
The two companies announced last month that they aimed to combine in an all-stock transaction. Their focus centers around the commercialization of Conavi’s Novasight Hybrid system for guiding minimally invasive coronary procedures. Agreeing to a merger followed more than a year of significant uncertainty surrounding the future of Titan Medical.
Agreeing to a merger followed more than a year of significant uncertainty surrounding the future of Titan Medical. At the end of 2022, the company suspended a meeting of shareholders intended to vote on a share consolidation plan. With that, Titan management decided to kick off a strategic review, considering a potential sale of the company. It also implemented cost-cutting measures that included the furloughing of 40 employees.
Eventually, after Titan conducted outreach to more than 40 potential counterparties, it halted the development of its ENOS surgical robot in February 2023. To avoid insolvency, the company began selling assets and licensed its IP. It struck deals on that front in May, June and August 2023, including licensing surgical robotics IP to market leader Intuitive Surgical.
Titan said it determined that merging with another surgical robotics company was “not a viable option.” It expanded its search and landed on Conavi.