Titan Medical Reports Operating and Financial Results for the Second Quarter 2024
16 August 2024 - 2:32AM
Titan Medical Inc. (“
Titan” or the
“
Company”) (TSX: TMD; OTC: TMDIF), today reported
financial results for the three and six months ended June 30, 2024.
Recent Activities in Q2 2024:
- On May 29, 2024,
the Company announced an amendment to the timeframe under which
certain closing conditions must be met in the amalgamation
agreement dated March 17, 2024 with Conavi Medical Inc.
(“Conavi”), 1000824255 Ontario Inc. (a
wholly-owned subsidiary of Titan) (the “Amalgamation
Agreement”).
- On July 5, 2024,
the Company announced the second amendment to the timeframe under
which certain conditions must be met in the Amalgamation Agreement
and announced the Company was seeking an additional extension with
the Toronto Stock Exchange (“TSX”) to hold its
Annual General and Special Meeting of Shareholders (the
“Titan AGM”) on or before September 30, 2024.
- On August 14,
2024, the Company announced the third amendment to alter certain
closing conditions that must be met in the Amalgamation Agreement.
- extending the
Outside Date (as such term is defined in the Amalgamation
Agreement) for completion of the Proposed Transaction to October
10, 2024;
- extending the
date by which the Concurrent Financing (as such term is defined in
the Amalgamation Agreement) must be committed to September 3,
2024;
- reducing the
minimum aggregate size of the Concurrent Financing (as such term is
defined in the Amalgamation Agreement) from $15 million to $7.5
million;
- extending the
date by which Conavi financial statements must be completed to
August 23, 2024;
- reducing the
minimum net cash Titan must have at the Effective Time (as such
term is defined in this Amalgamation Agreement) from US$5 million
to US$2 million;
- extending the
targeted date by which the information circular for the Titan AGM
must be mailed to shareholders to September 3, 2024;
- extending the
targeted date by which the Titan AGM must be held to September 30,
2024;
- extending the
targeted date by which the information circular for the Conavi
annual general meeting must be mailed to shareholders to September
3, 2024; and
- extending the
targeted date by which the Conavi annual general meeting must be
held to September 30, 2024.
Financial Highlights:
As of June 30, 2024, Titan had cash of $3.9
million, compared to $7.5 million as at December 31, 2023. Working
capital was $3.3 million as of June 30, 2024, compared to $5.5
million as at December 31, 2023.
Research and development
(“R&D”) expenses were nil for the three months
ended June 30, 2024 compared to $0.4 million for the three months
ended June 30, 2023. R&D expenses were recovery of $0.1 million
for the six months ended June 30, 2024 compared to $0.8 million for
the six months ended June 30, 2023.
In the three and six months ended June 30, 2023,
the Company implemented cost-cutting measures that significantly
reduced R&D expenses. In the six months ended June 30, 2024,
R&D expense recovery of $0.1 million is attributed to
cancellation of stock options and restricted share units related to
R&D personnel.
General and administrative
(“G&A”) expenses were $1.1 million and $2.0
million for the three and six months ended June 30, 2024 compared
to $4.3 million and $6.6 million for the comparative periods ended
June 30, 2023. The decrease in G&A expenses in the current
period is related to the cost-cutting measures implemented in Q2,
2023. In 2023, G&A expenses included severance charges of
$1.4M, transaction costs of $1.5M, and increased stock-based
compensation, offset by reduction in costs due to cost-cutting
measures.
The Company’s interim consolidated financial
statements and management discussions and analysis for the period
ended June 30, 2024 are available at www.sedarplus.ca. The
Company’s condensed interim consolidated financial statements have
been prepared by management and reviewed by the Company’s
auditors.
About Titan Medical
Titan Medical Inc. (TSX: TMD; OTC: TMDIF) is a
medical technology company incorporated under the Business
Corporations Act (Ontario) and headquartered in Toronto, Ontario,
has developed an expansive patent portfolio related to the
enhancement of robotic assisted surgery (RAS), including through a
single access point, and is currently focused on evaluating new
opportunities to further develop and license its intellectual
property while pursuing the completion of its agreed upon
Transaction with Conavi Medical Inc.
Cautionary Statement Regarding Forward-Looking
Information
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 Titan’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: Titan evaluating new opportunities to
further develop and license its intellectual property, the payment
of future settlement amounts, the delivery of materials to Titan,
and the completion of the merger with Conavi.
These forward-looking statements reflect
management’s current beliefs with respect to future events, and are
based on information currently available to management that, while
considered reasonable by management as of the date on which the
statements are made, are inherently subject to significant
business, economic and competitive uncertainties and contingencies
which could result in actions, events, conditions, results,
performance or achievements to be materially different from those
projected in the forward-looking statements. Forward-looking
statements involve significant risks, uncertainties and assumptions
and many factors could cause Titan’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. Such factors and assumptions
include, but are not limited to, Titan’s ability to retain key
personnel; its ability to execute on its business plans and
strategies; its ability to continue to license some or all its
intellectual property to third parties and receive any material
consideration and other factors listed in the “Risk Factors”
section of Titan’s Annual Information Form for the fiscal year
ended December 31, 2023 (which may be viewed at www.sedarplus.com).
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 and Titan has
attempted to identify important factors that could cause actual
actions, events, conditions, results, performance or achievements
to differ materially from those described in forward-looking
statements, Titan cannot assure prospective investors that actual
results, performance or achievements will be consistent with these
forward-looking statements. Except as required by law, Titan
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. Accordingly, investors
should not place undue reliance on forward-looking statements. All
the forward-looking statements are expressly qualified by the
foregoing cautionary statements.
ContactChien HuangChief Financial
Officerinvestors@titanmedicalinc.com
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