Titan Medical Reports Financial Results for the First Quarter 2024

/EIN News/ -- TORONTO, Ontario, May 13, 2024 (GLOBE NEWSWIRE) -- Titan Medical Inc. (“Titan” or the “Company”) (TSX: TMD; OTC: TMDIF), today reported financial results for the three months ended March 31, 2024.

Recent Activities:

• On March 18, 2024, the Company announced it has entered into a definitive amalgamation agreement (the “Definitive Agreement”) with Conavi Medical Inc. (“Conavi”) to combine the companies in an all-stock transaction (the “Transaction”). Under the terms of the Definitive Agreement, a newly incorporated and wholly-owned subsidiary of the Company and Conavi will amalgamate and the shareholders of Conavi will be issued Common Shares of the Company (“Common Shares”) based on an exchange ratio to be determined pursuant to the Definitive Agreement. The exchange ratio will be adjusted, if necessary, such that the Company’s shareholders prior to closing of the Transaction will hold at least 10% of the resulting shares following completion of the Transaction, but may be higher depending on the Company’s cash balance on the Transaction closing date. In connection with the Transaction, Titan expects to delist its common shares from the Toronto Stock Exchange and apply to have them listed instead on the TSX Venture Exchange (the “TSXV”). Titan is focused on the execution of the Transaction, which remains subject to a number of conditions precedent set forth in the Definitive Agreement, including the approval of the Company shareholders, the Conavi shareholders, and the approval of the TSXV for the listing of the Common Shares following closing of the Transaction.
• On March 20, 2024, the Company announced a Q&A session with registered shareholders regarding the Transaction and in the session on March 27, 2024 management provided prepared remarks and responded to questions that had been submitted.
• On March 29, 2024, the Company announced the release of its 2023 year end financial results.
• On April 1, 2024, the Company announced that a contractual dispute with a contract manufacturer was settled.

Financial Highlights:

As of March 31, 2024, Titan had cash of $5.7 million, compared to $7.5 million as at December 31, 2023. Working capital was $4.4 million as of March 31, 2024, compared to $5.5 million as at December 31, 2023.

Research and development (“R&D”) expenses were recovery of $0.1 million for the three months ended March 31, 2024, compared to expense of $0.5 million for the three months ended March 31, 2023. In the three months ended March 31, 2024, the recovery is attributed to cancellation of stock options and Restricted Share Units (“RSUs”) related to R&D personnel.

General and administrative (“G&A”) expenses were $0.9 million for the three months ended March 31, 2024, compared to $2.3 million for the three months ended March 31, 2023.

The Company’s interim consolidated financial statements and management discussions and analysis for the period ended March 31, 2024 are available at www.sedarplus.ca. The Company’s condensed interim consolidated financial statements have been prepared by management and have not been 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.

Contact
Chien Huang
Chief Financial Officer
investors@titanmedicalinc.com

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