Titan Medical Inc. (“Titan” or the “Company”) (TSX: TMD; OTC: TMDIF) is pleased to provide this further corporate update on its successful transition to an IP licensing company.
Given the state of the capital markets such that emerging tech issuers have generally faced severe challenges in raising capital for pre-revenue and development stage projects, Titan has determined to focus on exploring opportunities to generate revenue from the licensing of its existing patent portfolio, and as previously announced:
- the Company has terminated its R&D operations and has substantially cut operating expenses including management compensation and G&A expenses; and
- the Company has signed two licensing agreements as previously disclosed with two major players in the surgical robotic industry for total upfront payments of USD$15.5 million.
We believe that the two licensing deals validate the importance and value of our patent portfolio and we continue to pursue discussions with other parties toward additional non-exclusive licensing arrangements.
With the influx of new cash from the two recent licensing agreements and the termination of our R&D operations, the Company continues to manage its payables and expects to meet its projected obligations well into 2024. As part of the transition away from R&D operations, we are also exploring opportunities for the sale of our testing and manufacturing equipment.
Finally, the Company will also explore opportunities for a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities (a “Business Combination”). Although the Company will not be limited to a particular industry or sector for purposes of consummating a Business Combination, the Company intends to focus primarily on biotech, medtech and other life sciences and technology sectors.
Paul Cataford, Interim CEO and Chair, stated, “We had expected a better outcome from our strategic review process and we were disappointed with the lack of any bids for the Company despite the significant efforts in support of the process from our management and board and our financial advisor. However, we are very pleased with the recent developments noted above which have allowed us to place the Company on a much stronger financial footing. Under the circumstances, our Executive Team and Board have performed well and have generated surprisingly good results.
It is a pleasure and a privilege to serve with such a dedicated and hard-working Board and Management Team and I reiterate my appreciation to them as well as to our former management colleagues who were instrumental in this period of transition.”
The Company remains dedicated to continued shareholder engagement and we look forward to the upcoming annual meeting.