Titan Medical Inc. (Nasdaq: TMDI) designs and develops surgical technologies for robotic single access surgery, focuses on medical devices. TMDI shares plunged in the pre-market session as it was down -15.98% to $1.58 after the announcement that its board of directors has approved a deal under which Bloom Burton will purchase, on a bought deal basis, 6,451,613 shares of the Company for US$1.55 for aggregate gross proceeds of US$10,000,000.
One unit consists of one common share in the company’s capital and one-half of a common share purchase warrant. Each Warrant is exercisable for one common share at an exercise price of US$2.00 per share for 60 months from the closing of the Offering.
Underwriters have been granted an option to purchase up to an additional 15% of the number of Units initially sold under the Offering at the Offering Price.
Proceeds from the Offering will develop the company’s robotic surgical technologies and general working capital. Under normal circumstances, the Offering is expected to close by January 29, 2021, or at another agreed-upon date by the Company and the Underwriters. These conditions are subject to the receipt of all necessary regulatory, stock market, and other approvals, including the Toronto Stock Exchange’s support.