Paul Cataford Appointed Chairman of the Board
Heather Knight Appointed as Independent Director Cathy Steiner
Nominated for Election as Independent Director
Titan Medical Inc. (Nasdaq: TMDI; TSX: TMD), a medical device
company focused on the design and development of surgical
technologies for robotic single access surgery, announces financial
results for the three months ended March 31, 2021. During the first
quarter of 2021 the company raised proceeds of $34.5 million from
two equity financings and $10 million from the exercise of warrants
issued to investors in previous offerings. Titan also announces
changes to its board of directors appointing Paul Cataford as
Chairman of the Board and Heather Knight as an independent member
of the board. In addition, Cathy Steiner has been nominated for
election to the Board at the annual and special meeting of
shareholders on June 9, 2021.
“We welcome Paul Cataford as our new Chairman of the Board. In
his previous role as Lead Independent Director of Titan’s Board of
Directors, Paul has demonstrated his leadership skills and
corporate governance experience, and we believe that the separation
of the Chairman and CEO roles is aligned with best governance
practices,” said David McNally, President and Chief Executive
Officer of Titan.”
“We are delighted to announce that Heather Knight, General
Manager of U.S. Hospital Products at Baxter Healthcare has joined
our board. Heather is a dynamic sales and marketing executive with
nearly 25 years of proven healthcare commercial experience. In
addition, we are excited to announce that Cathy Steiner, Principal
of Origin Merchant Partners, an independent investment bank, has
been nominated to join the board upon shareholder approval at the
annual meeting. Cathy is a seasoned executive with over 20 years of
experience as an investment banker and financial and capital
markets advisor for healthcare companies. Cathy will succeed
Stephen Randall, who is retiring from the Board on June 9, 2021. We
are grateful to Stephen for his contributions to the company over
more than a decade as an executive, and four years as a member of
the Board.”
Mr. McNally continued, “Titan made significant progress during
the first quarter of 2021 including strengthening our financial
foundation, augmenting the senior management team, improving
financial accounting oversight and implementing enhanced governance
practices and policies. We believe our accomplishments and the
steps we are taking will position us to achieve our vision of
providing a leading-edge robotic single access surgical system for
the benefit of patients and surgeons.”
“Our growing engineering team in Chapel Hill, North Carolina is
finalizing development of our Enos™ robotic single access surgical
system, while we clarify with the FDA expectations for our human
clinical studies planned for 2022. We also continue to execute on
the milestones associated with the Medtronic development and
license agreement, with the next milestone anticipated for
completion this month. We are proud of our progress and are very
excited about our future, and the potential to serve an
underpenetrated, yet very attractive market segment. We look
forward to sharing additional details on our progress in the coming
quarters.” McNally concluded.
Business highlights for the first quarter of 2021 and recent
weeks include:
- Completion of a “bought deal” offering underwritten by Bloom
Burton Securities Inc. for gross proceeds of $11.5 million.
- Launch of “Titan Living Labs”, a media-rich addition to Titan’s
website that provides access to stories behind the design and
engineering of the Enos surgical system.
- Completion of a second “bought deal” offering underwritten by
Bloom Burton Securities Inc. for gross proceeds of $23
million.
- David McNally presented to a live virtual audience at the H.C.
Wainwright Global Life Sciences Conference.
- David McNally led a day of virtual one-on-meetings with
investors at the 33rd Annual Roth Conference.
- David McNally participated in a fireside chat at the
Oppenheimer 31st Annual Healthcare Conference.
- David McNally presented to a live virtual audience at the Bloom
Burton Healthcare Investor Conference.
- Appointment of Kristen Galfetti as Vice President, Investor
Relations & Corporate Communications.
- Appointment of Chien Huang as Vice President, Finance.
Financial results for the three months ended March 31, 2021
include:
As of March 31, 2021, Titan had cash and cash equivalents of
$53.4 million, compared to $25.5 million at December 31, 2020.
Since December 31, 2020, the company has received $10 million from
the exercise of warrants and aggregate gross proceeds of $34.5
million from two financings that closed during the first quarter
2021.
Net and comprehensive loss for the three months ended March 31,
2021 was $14.8 million, compared with a net and comprehensive loss
of $0.8 million, for the three months ended March 31, 2020. The
increased loss is primarily due to increased research and
development expenses of $7.6 million in the first quarter of 2021
as the company progressed on development of its Enos system and the
activities under the development and license agreement with
Medtronic. In the first quarter of 2020, R&D expenses were
$0.05 million as the company had temporarily suspended its R&D
activities. As the company increased staffing and investment in
strategic business development and corporate governance, general
and administrative expenses increased to $4.1 million in the first
quarter of 2021 compared to $1.7 million in the first quarter of
2020. During the first quarter of 2021, the company also incurred a
non-cash loss on the fair value of warrants of $3.1 million
compared to a non-cash gain of $1.1 million in the first quarter of
2020.
As of March 31, 2021, current liabilities, excluding warrant
derivative liability were $5.2 million compared with $6.6 million
at December 31, 2020. As of March 31, 2021, the company had working
capital of $50.6 million compared to a working capital of $20.4
million at December 31, 2020.
The condensed consolidated interim financial statements for the
quarter ended March 31, 2021, have been prepared in accordance with
International Accounting Standards 34 (IAS 34) – Interim Financial
Reporting and should be read in conjunction with the annual audited
consolidated financial statements for the year ended December 31,
2020. These statements may be viewed at www.sedar.com and at
www.sec.gov.
Investor Audio Webcast Information
Titan Medical will host an investor audio webcast at 4:30 p.m.
ET today (May 17, 2021) to discuss the company’s financial results
for the quarter ended March 31, 2021 and 2020, and recent business
highlights. The webcast can be accessed in the Investor Relations
section www.titanmedicalinc.com.
About Titan Medical Inc.
Titan Medical Inc. (Nasdaq: TMDI; TSX: TMD), a medical device
company headquartered in Toronto, Ontario and with R&D
facilities in Chapel Hill, North Carolina, is focused on enhancing
robotic assisted surgery using innovative technology through a
single access point. The Enos™ robotic single access surgical
system is being developed with an ergonomic focus to provide a
surgical experience that imitates real-life movements that surgeons
demand, and includes multi-articulating instruments designed to
allow surgeons an increased range of motion in a confined space,
with dexterity and the ability to exert the forces necessary to
complete common surgical tasks. With the Enos system, Titan intends
to initially pursue gynecologic surgical indications.
Certain of Titan’s robotic assisted surgical technologies and
related intellectual property have been licensed to Medtronic plc,
while retaining world-wide rights to commercialize the technologies
for use with the Enos system.
Enos™ is a trademark of Titan Medical Inc.
For more information, visit www.titanmedicalinc.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of applicable Canadian and U.S. securities laws, which
reflect the current expectations of management of the company’s
future growth, results of operations, performance, and business
prospects and opportunities. Forward-looking statements are
frequently, but not always, identified by words such as “may”,
“would”, “could”, “will”, “anticipate”, “believe”, “plan”,
“expect”, “intend”, “estimate”, “potential for” and similar
expressions, although these words may not be present in all
forward-looking statements. Forward-looking statements that appear
in this release may include, without limitation, references to: the
company’s focus on the design and development of surgical
technologies for robotic single access surgery; Cathy Steiner
succeeding Stephen Randall on the company’s board; the company’s
belief that the steps it is taking will position it to achieve its
vision of providing a leading-edge robotic single access surgical
system for the benefit of patients and surgeons; the company’s next
milestone being anticipated for completion this month; the
company’s potential to serve an underpenetrated, yet very
attractive market segment; the company’s intention to host an
upcoming investor audio webcast; the company’s focus on enhancing
robotic assisted surgery using innovative technology through a
single access point; the Enos robotic single access surgical system
being developed with an ergonomic focus to provide a surgical
experience that imitates real-life movements that surgeons demand;
and that Titan intends to initially pursue gynecologic surgical
indications. These statements reflect management’s current beliefs,
and are based on information currently available to management.
Forward-looking statements involve significant risks, uncertainties
and assumptions. Many factors could cause the company’s actual
results, performance or achievements to be materially different
from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements, including,
without limitation, those listed in the “Risk Factors” section of
the company’s Annual Information Form and Form 40-F for the fiscal
year ended December 31, 2020 (which may be viewed at www.sedar.com
and at www.sec.gov). Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results,
performance, or achievements may vary materially from those
expressed or implied by the forward-looking statements contained in
this news release. These factors should be considered carefully,
and prospective investors should not place undue reliance on the
forward-looking statements. Although the forward-looking statements
contained in the news release are based upon what management
currently believes to be reasonable assumptions, the company cannot
assure prospective investors that actual results, performance or
achievements will be consistent with these forward-looking
statements. Except as required by law, the company expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210517005434/en/
Kristen Galfetti Vice President, Investor Relations
+1-781-869-2553 investors@titanmedicalinc.com
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