Titan Medical (TSX:TMD) said today that it inked a deal with Longtai Medical to convert $2 million Longtai paid as a distributorship deposit to equity, making Longtai the robotic surgical company’s largest shareholder.
The conversion comes 2 years after Titan Medical and Longtai negotiated a deal that would have made Longtai the company’s exclusive distributor of its Sport robotic surgical platform in China.
Through the deal, Titan is issuing 16.9 million units at 12¢ (CDN 15¢) per share. Each unit offered consists of 1 common share and one purchase warrant exercisable for a single common share at 16¢ (CDN 20¢) for 60 months from the closing of the offering.
“We are very pleased to have reached this agreement with Longtai, which conserves our cash and provides them with an equity ownership position in Titan. Longtai will become our largest shareholder and also is a valued strategic partner as we anticipate expansion into China and Southeast Asia following the introduction of SPORT Surgical System in the United States and Europe,” Titan CEO David McNally said in a press release.
“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.
Last month, Titan Medical said it closed a stock offering worth about $7 million for the Sport robot-assisted surgery platform it’s developing.