Titan Medical (CVE:TMD) said today it filed a prospectus supplement for the offering it announced earlier this week, saying its agent Bloom Burton & Co. is looking to float 14 to 16 million shares to bring in between $10.6 and $12.1 million (CAD $14 – $16 million).
Each warrant is exercisable at the price of 92¢ (CDN $1.20) and entitles the holder to acquire 1 common share of stock in Titan Medical for 5 years following the closing, which the company said it expects to happen on or about March 31.
Bloom Burton & Co have been granted an over-allotment option at the issued price plus an additional 15¢ (CAD 20¢) per over-allotment warrant, which are exercisable in part or whole any time on the closing date or up to 30 days after, according to an SEC filing. Over-allotment warrants cannot exceed 15% of the number of units issued in the offering.
The offering is being pursued through an agency agreement between the company and Bloom Burton & Co, which will be paid a cash commission of 7% of gross proceeds, according to a press release.
Common shares are listed on the TSX under the symbol “TMD”, and warrants will be listed under “TMD.W.T.H.” according to the company.
Funds from the round will be used to fund continued development of its Sport surgical system, as well as for working capital and other general corporate purposes.
In February, Titan Medical said an over-allotment option on its most recent offering added another $1.1 million (CDN $1.6 million) through the sale of an additional 1.7 million units at 65¢ (CDN 90¢) to the round, lifting the previous round total to approximately $8.8 million (CDN $12 million).
Each unit sold in the offering, which was managed by Bloom Burton & Co. Limited, consists of 1 common share of stock and one common share purchase warrant, which entitles the holder to acquire one share of the company at 73¢ (CDN $1) per share for 60 months following closing.