Titan Medical (TSX:TMD) said today that it closed a deal with Longtai Medical to convert a $2.0 million distributorship deposit to equity. The move makes Longtai the robotic surgical company’s largest shareholder.
In May of 2015, Titan Medical and Longtai, a subsidiary of Chinese medical device distributor Ningbo Long Hengtai International Trade Co., inked a deal to make Longtai the company’s exclusive distributor of its Sport robotic surgical platform in China.
According to the latest deal, Titan issued 16,892,000 shares to Longtai at 12¢ (CDN 15¢) apiece. Each unit offered is made up of one common share and one purchase warrant exercisable for a single common share at 16¢ (CDN 20¢) apiece for 60 months from the offering’s closing.
“We are very excited to become Titan’s largest shareholder and a long-term strategic partner. We look forward to working with Titan in the future development of the China and Southeast Asia markets,” Longtai CEO Feng Ting Ling said in a prepared statement when the deal was first announced.
In July this year, Titan Medical closed a stock offering worth nearly $7 million for the Sport robot-assisted surgery platform that it’s developing.