Titan Medical (Nasdaq:TMDI) announced today that it plans to review and evaluate strategic alternatives to unlock shareholder value.
Toronto-based Titan develops single-access robotic-assisted surgery technology. It consulted with financial and legal advisors to determine that the review is in the company’s and stakeholders’ best interest.
According to a news release, Titan’s board plans to consider a full range of strategic alternatives. That may include a corporate sale, merger or other business combination. It could also lead to a sale of all or a portion of its assets, strategic investment or other significant transaction.
Titan Medical earlier this month announced a plan to hold a virtual shareholder meeting on Jan. 12, 2023. The goal is to seek approval for a share consolidation plan to maintain the company’s Nasdaq listing.
As part of the strategic review, Titan engaged Raymond James as a financial advisor. Raymond James’ role includes advising the company in the review and analyzing strategic alternatives.
No guarantees out of the review
Titan did not set a timetable for the completion of this process. The company said it does not intend to provide updates on developments until it executes a definitive agreement. An exception could come should the board determine that an update is appropriate or required.
The company intends to evaluate all options fairly to maximize shareholder value. However, it said it couldn’t assure that the process will result in any transaction. In addition, should the company undertake a transaction, it has no guarantees regarding its terms or timing.
“Our management team is completely aligned with the board’s decision to explore options to maximize shareholder value,” said Titan President and CEO Cary Vance. “We believe it is prudent to undertake a review of our strategic options to determine the best path forward to realize the value of our innovations in single-access robotic-assisted technologies to maximize shareholder value. Our Board and management team remain committed to our strategy of providing patients, surgeons and hospitals with an innovative, improved surgical experience.”
Could prior relationships come into play?
Titan has a longstanding relationship with medtech giant Medtronic, including a range of purchase orders, milestone payments and more. That relationship could be worth keeping an eye on as Titan’s review process plays out.
In September, Titan and Medtronic entered into a development deal on surgical robots. The agreement built on a 2020 development and license deal. Titan achieved all three milestones in the agreement, including raising $18 million in capital in October 2020. In May, Titan signed a $2.6 million purchase order from Medtronic to provide instruments and cameras for preclinical activities.
“Medtronic’s interest has been in Titan’s ability to innovate,” Vance told MassDevice in October. “That was the genesis of the arrangement we had about two-and-a-half years ago when we were asked to develop some technology for them.”