Titan Medical (TSX:TMD;OTC:TITFX) said it applied for a listing on the NASDAQ exchange and revealed plans for a 1-for-30 share split, sending share prices soaring today in New York and Toronto.
The robot-assisted surgery company, which lists its shares on the OTC exchange in the U.S. and on the Toronto Stock Exchange, said the reverse split is slated to go into effect June 19 when the markets open. The split is aimed at meeting the NASDAQ exchange’s listing requirements.
“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 in prepared remarks. “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 419,888,311 to 13,996,277.
TITFX shares were up 18.0% to 21¢ apiece today in late-morning trading in New York; TMD shares gained 10.2% to C27¢ (about 20.9¢) in Toronto.