Titan Medical Reports Financial Results for the First Quarter 2024

TORONTO, Ontario, May 13, 2024 (GLOBE NEWSWIRE) -- Titan Medical Inc. (“Titan” or the “Company”) (TSX: TMD; OTC: TMDIF), today reported financial results for the three months ended March 31, 2024.

Recent Activities:

• On March 18, 2024, the Company announced it has entered into a definitive amalgamation agreement (the “Definitive Agreement”) with Conavi Medical Inc. (“Conavi”) to combine the companies in an all-stock transaction (the “Transaction”). Under the terms of the Definitive Agreement, a newly incorporated and wholly-owned subsidiary of the Company and Conavi will amalgamate and the shareholders of Conavi will be issued Common Shares of the Company (“Common Shares”) based on an exchange ratio to be determined pursuant to the Definitive Agreement. The exchange ratio will be adjusted, if necessary, such that the Company’s shareholders prior to closing of the Transaction will hold at least 10% of the resulting shares following completion of the Transaction, but may be higher depending on the Company’s cash balance on the Transaction closing date. In connection with the Transaction, Titan expects to delist its common shares from the Toronto Stock Exchange and apply to have them listed instead on the TSX Venture Exchange (the “TSXV”). Titan is focused on the execution of the Transaction, which remains subject to a number of conditions precedent set forth in the Definitive Agreement, including the approval of the Company shareholders, the Conavi shareholders, and the approval of the TSXV for the listing of the Common Shares following closing of the Transaction.
• On March 20, 2024, the Company announced a Q&A session with registered shareholders regarding the Transaction and in the session on March 27, 2024 management provided prepared remarks and responded to questions that had been submitted.
• On March 29, 2024, the Company announced the release of its 2023 year end financial results.
• On April 1, 2024, the Company announced that a contractual dispute with a contract manufacturer was settled.

Financial Highlights:

As of March 31, 2024, Titan had cash of $5.7 million, compared to $7.5 million as at December 31, 2023. Working capital was $4.4 million as of March 31, 2024, compared to $5.5 million as at December 31, 2023.

Research and development (“R&D”) expenses were recovery of $0.1 million for the three months ended March 31, 2024, compared to expense of $0.5 million for the three months ended March 31, 2023. In the three months ended March 31, 2024, the recovery is attributed to cancellation of stock options and Restricted Share Units (“RSUs”) related to R&D personnel.