TORONTO, ON--(Marketwired - October 30, 2015) -
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Titan Medical Inc. ("Titan" or the "Company") (
Under the terms of the Letter Agreement, Longtai will subscribe for and purchase US$4,000,000 worth of Common Shares of Titan under a private placement, at a subscription price of CDN$1.23 per share. The private placement is expected to close on November 15, 2015 and is subject to normal closing conditions including TSX approval. Titan has granted to Longtai exclusive rights to negotiate with Titan for an exclusive marketing, sales and distribution agreement for Titan's SPORT™ Surgical System in the Asia Pacific region (the "Distributorship Agreement") for a period of 183 days commencing at closing. Additionally, Longtai has paid to Titan US$2,000,000 as a deposit toward the Distributorship Agreement ("Distributorship Deposit"), which shall be repaid to Longtai in the event that the agreement is not entered into within the 183-day period. Concurrently with the signing of the Distributorship Agreement, Longtai has agreed to subscribe for and purchase an additional US$4,000,000 worth of Common Shares at a share issue price equal to the 5-day VWAP (less a 12.5% discount). If the Distributorship Agreement is signed and the second US$4,000,000 private placement is completed, Titan shall retain US$1,400,000 of the Distributorship Deposit and repay US$600,000 to Longtai.
Based on successful negotiations, the Distributorship Agreement will further lead to an additional US$15,000,000 investment by Longtai. The investment proceeds will be used for the establishment and support of a Titan operation office and facility in the Asia Pacific Region; establishment of a training program for the SPORT system; sales and marketing of the SPORT system.
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 Single Port Orifice Robotic Technology, SPORT™ Surgical System, currently under development, is comprised of a surgeon-controlled robotic platform that includes a 3D vision system and interactive instruments for performing MIS procedures, and a surgeon workstation that provides the surgeon with an interface to the robotic platform for controlling the interactive instruments and providing a 3D endoscopic view of inside a patient's body during MIS procedures. The SPORT™ Surgical System is being designed to expand robotic surgery into both simple and complex areas of surgical specialties and procedures that are currently under-serviced. It is also being designed to allow surgeons to perform procedures within small- to medium-size surgical spaces for general abdominal, gynecologic, and urologic indications. For more information, visit the Company's website at www.titanmedicalinc.com.
About Ningbo-Longtai Healthcare Group
Medical Distribution
Ningbo-Longtai has engaged in the distribution of medical equipment for 17 years and is among the top medical equipment distributors in China. Ningbo-Longtai has constructed a very mature three-level distribution system, with 20+ provincial sub dealers, and approximately 1000 sub-sub dealers. Currently, the company distributes AGFA film, printers, CR, DR, Tohsiba DR, Newtom CBCT, Medi-future FFDM, Stephanix DRF, and more product lines will come.
Medical equipment service
The Ningbo-Longtai service team was set up ten years ago, and has 50+ service engineers and a dozen service offices. The company has its own service spare parts storage and standard 900 call center. Its response speed and fix speed are all better than international companies, and it has a very good reputation in the industry.
Healthcare service
Ningbo-Longtai is preparing to establish two high-end healthcare centers. They are all in leading positions in hardware, service quality and techniques.
Forward-Looking Statements
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 31, 2015 (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
Contact Information:
CONTACT INFORMATION
Titan Medical Inc.
John Hargrove
Chairman & Chief Executive Officer
(416) 548-7522 (ext. 151)
john.hargrove@titanmedicalinc.com
www.titanmedicalinc.com