Titan Medical (Nasdaq:TMDI) is suspending a special meeting of shareholders that was supposed to vote on a share consolidation plan.
Since announcing the plan for the Jan. 12 meeting, however, the surgical robotics company’s management has decided to instead begin a strategic review. A sale of the company is a possibility. Meanwhile, Titan has also announced cost-cutting measures. They include furloughing 40 employees.
Cary G. Vance, Titan’s President and CEO, commented, “After consultation with our financial and legal advisors, we determined it was in the best interest of the company and its shareholders to suspend the special meeting,” Titan Medical CEO Cary G. Vance said in a news release.
“This action, in addition to resulting in a cost savings, allows the company to focus its attention on the strategic review process, completing tasks towards an IDE filing with the FDA and fulfilling certain other contractual development and supply obligations.”
Nasdaq granted the company an extension to regain compliance with its rule that an issuer maintains a minimum bid price of $1 per share for at least 10 consecutive business days. But if Titan Medical is unable to comply by Dec. 26, the exchange will notify it that is subject to delisting. The company could appeal, which might extend trading of TMDI on the Nasdaq.
Titan Medical develops single-access robotic-assisted surgery technology.
