Titan Medical (Nasdaq:TMDI) introduced right this moment that it plans to assessment and consider strategic options to unlock shareholder worth.
Toronto-based Titan develops single-access robotic-assisted surgical procedure expertise. It consulted with monetary and authorized advisors to find out that the assessment is within the firm’s and stakeholders’ finest curiosity.
In response to a information launch, Titan’s board plans to contemplate a full vary of strategic options. That will embrace a company sale, merger or different enterprise mixture. It may additionally result in a sale of all or a portion of its property, strategic funding or different vital transaction.
Titan Medical earlier this month introduced a plan to carry a digital shareholder assembly on Jan. 12, 2023. The aim is to hunt approval for a share consolidation plan to take care of the corporate’s Nasdaq itemizing.
As a part of the strategic assessment, Titan engaged Raymond James as a monetary advisor. Raymond James’ position consists of advising the corporate within the assessment and analyzing strategic options.
No ensures out of the assessment
Titan didn’t set a timetable for the completion of this course of. The corporate mentioned it doesn’t intend to offer updates on developments till it executes a definitive settlement. An exception may come ought to the board decide that an replace is suitable or required.
The corporate intends to guage all choices pretty to maximise shareholder worth. Nevertheless, it mentioned it couldn’t guarantee that the method will lead to any transaction. As well as, ought to the corporate undertake a transaction, it has no ensures concerning its phrases or timing.
“Our administration crew is totally aligned with the board’s determination to discover choices to maximise shareholder worth,” said Titan President and CEO Cary Vance. “We consider it’s prudent to undertake a assessment of our strategic choices to find out the perfect path ahead to understand the worth of our improvements in single-access robotic-assisted applied sciences to maximise shareholder worth. Our Board and administration crew stay dedicated to our technique of offering sufferers, surgeons and hospitals with an modern, improved surgical expertise.”
Might prior relationships come into play?
Titan has a longstanding relationship with medtech big Medtronic, together with a variety of buy orders, milestone funds and extra. That relationship might be price maintaining a tally of as Titan’s assessment course of performs out.
In September, Titan and Medtronic entered into a development deal on surgical robots. The settlement constructed on a 2020 development and license deal. Titan achieved all three milestones within the settlement, together with raising $18 million in capital in October 2020. In Could, Titan signed a $2.6 million purchase order from Medtronic to offer devices and cameras for preclinical actions.
“Medtronic’s curiosity has been in Titan’s capability to innovate,” Vance instructed MassDevice in October. “That was the genesis of the association we had about two-and-a-half years in the past after we have been requested to develop some expertise for them.”
Editor’s Be aware: This text first appeared on sister web site MassDevice and was republished with permission.