SOURCE: Titan Medical Inc.

Titan Medical Inc.

November 23, 2015 16:26 ET

Titan Medical Inc. Closes Private Placement of US$4,000,000

TORONTO, ON--(Marketwired - November 23, 2015) -


Titan Medical Inc. ("Titan" or the "Company") (TSX: TMD) (OTCQX: TITXF) is pleased to announce that it has closed its previously announced private placement of 4,290,280 common shares of Titan ("Common Shares") at a subscription price of CDN$1.23 per common share for gross proceeds of approximately US$4,000,000 (the "Private Placement") with Longtai Medical Inc. ("Longtai"). Longtai is the Canadian subsidiary of Ningbo Long Hengtai International Trade Co. Ltd., a corporation incorporated under the laws of China with annual sales exceeding US$100,000,000. Longtai is an importer and distributor of high end medical devices for multinational companies.

The Private Placement was completed pursuant to agreements entered into by Titan and Longtai, and announced by news release, on October 30, 2015 (collectively, the "Agreement") and constitutes the first step toward a broader potential relationship between Titan and Longtai for establishing a market for Titan's SPORT™ Surgical System in China and the Asia Pacific region. The Company intends to use the net proceeds of the Private Placement for the continued development of the SPORT™ Surgical System, and for working capital and other general corporate purposes.

Under the Agreement, Titan has granted to Longtai exclusive rights to negotiate 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. 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. Longtai will, concurrently with the signing of the Distributorship Agreement, 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 will 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 for the establishment and support of a Titan operations office and facility in the Asia Pacific Region; establishment of a training program for the SPORT system; and 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

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 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.

The securities offered in the Private Placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state laws.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described herein.

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