Titan Medical Receives Final Milestone Payment and Retires Senior Secured Loan From Medtronic
January 26 2022 - 9:56AM
Business Wire
Titan Medical Inc. (Nasdaq: TMDI; TSX: TMD), a medical
technology company focused on the design and development of
innovative surgical technologies for robotic single access surgery,
announced today that it has received payment from Medtronic plc
after successfully achieving the final milestone under the
development and license agreement announced on January 4, 2022. In
addition, the senior secured loan from Medtronic has been
retired.
Titan received a net payment from Medtronic of $8.3 million. The
payment is comprised of a $10.0 million milestone payment related
to achieving the final milestone and a $0.6 million payment related
to certain legal, transaction and intellectual property costs. A
portion of the gross amount of $10.6 million was used to retire the
$2.3 million senior secured loan with Medtronic to get to the net
payment. The senior secured loan retirement included the original
note of $1.5 million plus $0.6 million in legal, transaction and
intellectual property costs and $0.2 million in interest.
On June 4, 2020, Titan announced it had entered into a license
agreement as well as a development and license agreement with
Medtronic to advance certain robotic-assisted surgical technologies
for use by both Titan and Medtronic. As a result of this
development activity, Titan has filed several new patent
applications for which it retains world-wide rights to
independently commercialize the technologies for use with its own
Enos™ robotic single access surgical system. Additionally, the
company was able to further attract and develop its team in Chapel
Hill, North Carolina to further expand its knowledge base in
robotic assisted surgery. The collaboration with Medtronic was
possible without impact to the timeline for the development of the
Enos system. The previously announced delay in the timeline of the
Enos system are due, in part, to an uncertain and evolving
regulatory pathway; certain resource gaps, particularly in the
transfer to manufacturing and regulatory capability; and
uncertainty and challenges relating to manufacturing (which may be
offset with the engagement of an OEM manufacturer as announced on
January 11, 2022). Additional details of the agreements with
Medtronic may be viewed at www.sedar.com and at www.sec.gov.
About Titan Medical
Titan Medical Inc. (Nasdaq: TMDI; TSX: TMD), a medical
technology company headquartered in Toronto, Ontario and with
R&D facilities in Chapel Hill, North Carolina, is focused on
enhancing robotic assisted surgery using innovative technologies.
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.
Titan Medical 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; the company’s
belief that the uncertainty and challenges relating to
manufacturing may be offset with the engagement of an OEM
manufacturer; the company’s intention to initially pursue
gynecologic surgical indications with the Enos system; and the
license of certain of Titan’s robotic assisted surgical
technologies and related intellectual property to Medtronic plc,
while retaining world-wide rights to commercialize the technologies
for use with the Enos system. These statements reflect management’s
current beliefs with respect to future events 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, as well as the assumptions discussed under
the section titled “Development Plan” of the company’s Management’s
Discussion & Analysis (MD&A) for the fiscal period ended
September 30, 2021 (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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220126005658/en/
Kristen Galfetti Vice President, Investor Relations &
Corporate Communications +1-781-869-2553
investors@titanmedicalinc.com
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