Titan Medical Announces Corporate Update and Provides Bi-Weekly MCTO Status Update

TORONTO, Ontario, May 29, 2023 (GLOBE NEWSWIRE) -- Titan Medical Inc. (“Titan” or the “Company”) (TSX: TMD; OTC: TMDIF) announced today a corporate update and is also providing a default status report in accordance with the alternative information guidelines set out in National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”).

Corporate Update:

As a result of the strategic review process (“Strategic Review”) announced on November 30, 2022, the Board of Directors of Titan have approved a strategic transition (“Strategic Transition”) in the Company’s business from the development and commercialization of robotic-assisted surgery (“RAS”) technologies to evaluating new opportunities to further develop and license its intellectual property (“IP”). Titan continues to retain the rights necessary to develop and commercialize RAS technologies, should it choose to do so, including the two-instrument Enos single-access RAS system (the “Enos System”) and, as announced on January 9, 2023, a three-instrument single-access RAS system that builds on the Enos System technologies.

In connection with the Strategic Review, as previously disclosed, Raymond James Ltd. and members of Titan’s leadership team, conducted a comprehensive outreach to over 55 potential counterparties, engaged in a number of management presentations and cooperated in confidential due diligence reviews by a subset of the potential counterparties. While none of the parties expressed an interest in acquiring the Company’s business, the Company has, as announced last week, entered into a license agreement with a third party and continues to evaluate additional licensing opportunities.

With today’s announcement, the Company has concluded its engagement with Raymond James with respect to the Strategic Review. While focusing on the Strategic Transition, the Company will continue to review and evaluate further strategic alternatives for the business, including a corporate sale, merger or other business combination, a sale of all or a portion of the company’s assets, strategic investment or other significant transaction.

In order to further reduce operating cost in the business, the following management changes will occur effective June 1, 2023:

• Cary Vance will step down as the Company’s President and CEO. Paul Cataford will be appointed Interim President and CEO while the Company continues with its Strategic Transition. Mr. Vance will remain on the Board, replacing Mr. Cataford on each of his Board Committee assignments. Mr. Cataford will continue as Board Chair.
• Chien Huang, the Company’s Vice President, Finance will be appointed Chief Financial Officer and the Company’s current Chief Financial Officer, Stephen Lemieux, will transition to a consulting role to ensure an orderly transition and provide ongoing support to Mr. Huang, Mr. Cataford and the Board.
• Jasminder Brar, the Company’s Vice President, Legal and IP, General Counsel and Corporate Secretary, will transition to a consulting role to assist and advise the Company with IP transition and strategy.
• Bill Fahey, the Company’s Vice President, Operations and Manufacturing, will transition to a consulting role to assist the Company with technical matters.
• Nate Jones, the Company’s Director of Human Resources will transition to a consulting role to assist the Company with human resources matters related to Titan Medical USA Inc., its wholly owned U.S. subsidiary.