Titan Medical raises $16m from Chinese private equity firm

Titan Medical (CVE:TMD) said today that it raised $16 million in a private placement with Chinese private equity player Shanghai Jugu Equity Investment Fund.

Shanghai Jugu paid about $56.9¢ apiece (C74.6¢) for some 27.9 million TMD shares, the Toronto-based robot-assisted surgery company said.

The cash is earmarked for the Sport surgical platform Titan is developing. The company said the placement consists of a 16.4 million-share transaction slated to close by June 30, and a 2nd tranche of 11.5 million shares, to be triggered by Toronto Stock Exchange clearance of Shanghai Jugu’s personal information form.

“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,” chairman & CEO John Hargrove said in prepared remarks.

“We are very pleased that Shanghai Jugu has recognized Titan as a valuable investment opportunity,” added president Reiza Rayman. “This is an indication of emerging market interest in our technology and the value that it can bring to healthcare.”

Last month, Titan inked a 3-month extension on negotiations with distributor Longtai Medical for the exclusive rights to its Sport surgical robot in the Asia-Pacific region. Longtai put more than $24 million into Titan last November.

A March offering of shares and warrants grossed about $11.5 million (C$15.1 million) for Titan Medical.

(C$1 = $.763045)

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