Titan Medical (TSX:TMD;OTC:TITFX) shareholders this week approved a reverse stock split that could see the company exchange a single share for as many as 30.
The robot-assisted surgery company, which lists its shares on the OTC exchange in the U.S. and on the Toronto Stock Exchange, said earlier this month that the reverse split is slated to go into effect June 19 when the markets open. Titan also wants to move its U.S. listing to the NASDAQ exchange; the reverse split is aimed at meeting the exchange’s listing requirements.
Today Titan said some 88.1% of the more than 297 million shares voted at the meeting approved the split at a to-be-determined ratio of a common share for as few as five or as many as 30 outstanding shares.
“We believe that dual-listing our common stock on both the TSX and NASDAQ presents the opportunity to expand awareness of the company among U.S.-based investors and potentially provides avenues for additional sources of funding as we work to complete the development of the Sport surgical system,” president & CEO David McNally said when the split was announced earlier in June. “The considerable progress we have made in product development, strengthening our intellectual property portfolio, the successful demonstration of the first simulation training modules with our collaborator Mimic Technologies, and most recently, surgeons presenting abstracts at renowned medical conferences, all underlie the timing of this decision. The consolidation of our shares is a necessary step to meet NASDAQ’s listing requirements and we anticipate that our stock will be listed by the end of June.”
Titan said the reverse split is expected to take the number of outstanding shares from about 420 million to roughly 14 million at the one-for-30 ratio.
TITFX shares were up 1.0% to 20.38¢ apiece today in early trading in New York; TMD shares were flat at C26.5¢ in Toronto.