Titan Medical closes $4m private placement round

Titan Medical (CVE:TMD) said today it closed a $4 million private placement round with Longtai Medical.

The Toronto-based medical company floated approximately 4.3 million shares at 92¢ (CDN $1.23) to Longtai, which is the Canadian subsidiary of China’s Ningbo Long Hengtai International Trade Co.

Longtai imports and distributes high-end medical devices for multinational companies, Titan Medical said in a press release.

Titan granted Longtai exclusive rights to negotiate for exclusive marketing, sales and distribution for Titan’s SPORT surgical robotics system or 193 days.

Longtai paid $2 million as a deposit toward a distributorship agreement to be repaid if the companies do not enter the agreement in 183 days. Upon signing the agreement, Longtai agreed to purchase an additional $4 million in common shares .

If the companies successfully negotiate the distributorship agreement, Longtai said it will invest an additional $15 million to establish and support a Titan operations office and facility in the Asia Pacific region, as well as a training, sales and marketing programs for the Sport.

Last week, Titan Medical said it is plans to complete its 1st in-human Sport surgical system units during the 1st quarter of 2016 and announced a recently closed round of financing that brought in $8.6 million (CDN $11.5 million).

The company reported earnings from its 3rd quarter, ended on September 30, with losses growing to $10.9 million compared with $3.3 million during the same period in 2014. R&D costs were up for the company as well, growing from $3.1 million in its 3rd quarter in 2014 to $10.7 million this year.

The company said it closed a unit offering, bringing in a total $8.6 million for the company through a base offering of 8.1 million and over-allotment of an additional 1.2 million units sold at 92¢ (CDN $1.23) each.

The deal was made between Titan Medical and Octagon Capital Corporation, according to the press release.

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