After a remarkable run that began last November, Titan Medical (TSXV:TMD) today announced it is raising money at a price that is much less dilutive than it would have been last fall.
Titan says it has engaged Dundee Securities to sell 10,611,500 units of the company at $2.10 each for total gross proceeds of $22,284,150. A green shoe provision will allow the company to bump the financing up by 15%. The company expects the offering, which includes a full warrant, to close on April 23rd.
Shares of Titan have raced from under forty cents last September to a high of $2.61 yesterday. The company has not yet posted any revenue, but has invested more than $35-million in its offerings, owns seven patents, and will look to hit the market in 2015.
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Toronto-based Titan Medical, which listed on the TSX Venture exchange in January of 2012, is the company behind SPORT, the “Single Port Orifice Robotic Technology” Surgical System. The system, which is currently still under development, features a surgeon-controlled single incision platform. The platform includes a 3D vision system and interactive instruments for performing minimally invasive procedures. The company says the system is easier for surgeons to use and offers patients reduced pain, risk of infection and scarring, and a quicker recovery time means a shorter hospital stay. The SPORT system will sell to hospitals for about $1-million per unit.
One recent report says the global surgical robotics market is estimated to grow at an annual rate of 12%, reaching $18-billion in 2018.
At press time, shares of Titan Medical were down 8.4% to $2.39.