TORONTO, ON–(Marketwired – June 01, 2016) –
Titan Medical Inc. (“Titan”) (TSX: TMD)(OTCQX: TITXF) today announced that it has entered into an agreement (the “Subscription Agreement”) for an equity investment from Shanghai Jugu Equity Investment Fund Co. Ltd. (“Shanghai Jugu”). Under the terms of the agreement, Shanghai Jugu will subscribe for and purchase U.S. $16,000,000 worth of Common Shares of Titan under a private placement, at a subscription price of CDN $0.746 per share. The shares will be issued pursuant to an exemption from prospectus requirements and will be subject to resale restrictions for a period of 4 months following closing of the private placement under Ontario securities laws.
The Subscription Agreement provides that the Private Placement may be completed in two separate closings: (1) at the first closing, expected to take place by June 30, 2016, (“First Closing”) the parties will complete the issuance and purchase of 16,377,568 Titan Shares and (2) at a second closing (“Second Closing”), to occur following clearance by the TSX of a Personal Information Form (the “PIF”) to be submitted by Shanghai Jugu, the parties will complete the issuance and purchase of 11,506,350 Titan Shares. The Second Closing will be conditional upon clearance of the PIF by the TSX.
The proceeds will be used for the ongoing development and commercialization of Titan’s SPORT™ Surgical System.
“We are very pleased that Shanghai Jugu has recognized Titan as a valuable investment opportunity,” commented Reiza Rayman, President of Titan Medical Inc. “This is an indication of emerging market interest in our technology and the value that it can bring to healthcare.”
John Hargrove, Chairman and Chief Executive Officer of Titan Medical Inc., commented, “The SPORT™ Surgical System is expected to provide value clinically, financially, and operationally. As such, new markets that were not previously served can be addressed with our technology.”
About Titan Medical Inc.
Titan Medical Inc. is a Canadian public company focused on the design and development of a robotic surgical system for application in minimally invasive surgery (“MIS”). The Company’s SPORT™ Surgical System, currently under development, includes a surgeon-controlled robotic platform that incorporates a 3D high-definition vision system and multi-articulating instruments for performing MIS procedures through a single incision. The surgical system also includes a surgeon workstation that provides a surgeon with an advanced ergonomic interface to the robotic platform for controlling the instruments and provides a 3D high-definition endoscopic view of inside a patient’s body. The SPORT™ Surgical System is designed to enable surgeons to perform a broad set of surgical procedures for general abdominal, gynecologic, and urologic indications. For more information, visit the Company’s website at www.titanmedicalinc.com.
About Shanghai JuGu Equity Investment Fund Co. Ltd. section.
Shanghai JuGu, founded in 2008, is a private equity fund providing private equity, venture capital and other related financial services. Having registered capital of 100 million yuan and accumulated financial assets under management of more than 2 billion yuan, Shanghai JuGu funds is dedicated to wealth management, inductrial investment, small and micro loans and advisory services. Shanghai JuGu’s head office is located in Pudong New District, Shanghai, China
This news release contains “forward-looking statements” which reflect the current expectations of management of the Company’s future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “potential for” and similar expressions have been used to identify these forward-looking statements. 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 dated March 30, 2016 (which may be viewed at www.sedar.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, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward-looking statements.
Titan Medical Inc:
Chairman and Chief Executive Officer
Tel: (416) 548-7522 (ext. 151)
EVC Group, Inc.:
Tel: (310) 625-4462
Tel: (646) 445-4800