Titan Medical Reports First Quarter 2020 Financial Results
May 13 2020 - 4:30PM
Business Wire
Titan Medical Inc. (“Titan” or the “Company”) (TSX:
TMD) (Nasdaq: TMDI), a medical device company focused on the
design and development of a single-port robotic surgical system for
application in minimally invasive surgery (“MIS”), announces
financial results for the three months ended March 31, 2020.
All financial results are prepared in accordance with
International Accounting Standards (“IAS”) 34 on a basis consistent
with the Company’s 2019 annual financial statements and are
reported in U.S. dollars, unless otherwise stated. The unaudited
condensed interim financial statements and management’s discussion
and analysis for the period ended March 31, 2020 may be viewed at
www.sedar.com and at www.sec.gov.
David McNally, President and CEO of Titan, said, “Despite the
emergence of the COVID-19 pandemic during the first quarter of
2020, we have since closed three incremental financings. We
completed a first registered direct offering for proceeds of
approximately $1.2 million on March 27. On April 28, we received a
$1.5 million senior secured loan from a leading global medical
technology company, and then on May 7, we completed a second
registered direct offering for $2.0 million.”
Mr. McNally concluded, “We also reached an agreement with our
primary product development supplier to pay off the amounts owing
by the end of 2020. The supplier agreement and our recent
financings are intended to position the Company to raise additional
capital to satisfy our creditors and resume development of our
single-port robotic surgical system.”
Business highlights and achievements for the first quarter of
2020 and recent weeks include:
- On January 6, 2020, the Company and Cambridge Design
Partnership Ltd. announced an expanded engagement for robotic
instrument development.
- On January 27, the Company announced that it had received ISO
13485: 2003 Certification from a European Notified Body.
- On March 26, the Company announced that it had expanded and
strengthened its global IP portfolio to 49 issued patents and 86
patent applications; the portfolio has since grown to 52 issued
patents and 84 applications.
- On March 27, the Company announced receiving proceeds of $1.2
million from a registered direct offering of common stock and
warrants, led by H.C. Wainwright & Co.
- On April 29, the Company announced a $1.5 million senior
secured loan facility with a leading global medical technology
company.
- On April 30, the Company announced that it had entered into a
letter agreement with its primary product development supplier for
the payment of outstanding payables.
- On May 7, the Company announced receiving proceeds of $2.0
million from a registered direct offering of common stock and
warrants, led by H.C. Wainwright & Co.
Financial results for the three months ended March 31, 2020
include:
- Research and development (“R&D”) expenses for the three
months ended March 31, 2020 were $46,119, compared with R&D
expenses of $14,408,612 for the corresponding prior-year period, as
the Company suspended product development during the first quarter
of 2020 due to insufficiency of available capital and disruption to
supplier relationships.
- Net and comprehensive loss for the three months ended March 31,
2020 was $768,043, compared with a net and comprehensive loss of
$28,282,880, for the three months ended March 31, 2019. In addition
to reduced R&D expenses, the results for both periods include
the impact of changes in the valuation of outstanding
warrants.
- Cash, cash equivalents and deposits with service providers as
of March 31, 2020 were $2,241,619, compared with cash, cash
equivalents and deposits with service providers of $1,295,892 as of
December 31, 2019. At March 31, 2020, current liabilities,
excluding warrant liability were $10,210,103 compared with
$11,433,967 as of December 31, 2019.
About Titan
Titan Medical Inc. is focused on computer-assisted robotic
surgical technologies for application in MIS. The Company is
developing a single-port robotic surgical system comprised of a
surgeon-controlled patient cart that includes a dual-view camera
system with 3D and 2D high-definition vision options and
multi-articulating instruments for performing MIS procedures, and a
surgeon workstation that provides an advanced ergonomic interface
to the patient cart and a 3D endoscopic view inside the patient’s
body. Titan intends to initially pursue gynecologic surgical
indications for use of its single-port robotic surgical system.
For more information, please visit the Company’s website at
www.titanmedicalinc.com.
Forward-Looking Statements
This news release contains “forward-looking statements” within
the meaning of applicable Canadian and U.S. securities laws. Such
statements reflect the current expectations of management of the
Company’s future growth, results of operations, performance and
business prospects and opportunities. Wherever possible, words such
as “may”, “would”, “could”, “will”, “anticipate”, “believe”,
“plan”, “expect”, “intend”, “estimate”, “potential for” and similar
expressions have been used to identify these forward-looking
statements. These statements, including with respect to the use of
the net proceeds of recent financings and the Company’s expanded
relationship with Cambridge Design Partnership Ltd., reflect
management’s current beliefs with respect to future events and are
based on information currently available to management. There can
be no assurance that the Company will be successful in raising
additional capital necessary to satisfy its creditors, to pay its
primary product development supplier as well as other suppliers and
to resume development of its single-port robotic surgical system.
Furthermore, as previously announced on March 30, 2020, the Company
notes that its business and prospects are subject to added risks
associated with and arising from COVID-19, and the uncertainty of
the effects, duration and severity of the outbreak. For example,
the potential effects on the Company’s product and service
providers, consultants, U.S. and European regulatory authorities
and investigational hospital sites is presently unknown. Titan’s
previous market opportunity and growth projections are rendered
unreliable given the severity of COVID-19 on the healthcare sector
as well as, more broadly, on the economy and the capital markets.
The Company therefore has withdrawn and disclaimed all prior
disclosures and references in its annual information forms,
management’s discussion and analysis, material change reports, news
releases, investor presentations, letters to shareholders,
prospectuses and other regulatory filings, with respect to: i)
market research reports published by external market research
firms; ii) market size and growth projections; iii) any and all
product and service pricing estimates; iv) revenue projections; and
v) market and revenue growth set forth in news releases or filings
of other issuers in the robotic surgical technology sector.
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 Report for the year ended December 31, 2019
(which may be viewed at www.sedar.com and 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200513005819/en/
Contact Information Stephen Randall Chief Financial
Officer 416-548-7522 stephen@titanmedicalinc.com
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