Titan Medical (CVE:TMD) said today that it’s spiking talks with Chinese distributor Longtai Medical over its Sport robot-assisted surgery platform so it can focus on winning regulatory approvals in the U.S. and Europe.
Back in October 2015, Toronto-based Titan inked a private placement deal with Longtai, a subsidiary of Chinese medical device distributor Ningbo Long Hengtai International Trade Co., that could have ended up being worth more than $24 million.
Longtai put up a $2 million deposit toward the distribution deal, but now that talks have ended that money must be returned, Titan said.
“We are focused on our largest target markets in the United States and Europe. It is worth noting that lengthy discussions with Longtai began in October 2015 and included a good faith $2 million deposit and 2 term extensions, but with initial priority the United States and Europe, other partnering opportunities and our commitment to focus the contemplated distribution agreement is not in the best interests of Titan. We part ways with Longtai amicably and look forward to reporting on additional milestone progress in the near-term,” CEO David McNally said in prepared remarks.
Titan put the Sport program on hold last August after its development partner Ximedica suspended development until Titan could cover its bills. Adding insult to injury, a planned $16.0 million equity investment from Shanghai JuGu Equity Investment Fund, originally slated to close June 30 and extended to August 15, failed to materialize.
The companies re-started the program last October after Titan raised nearly $7.9 million with an overnight offering, putting the Sport project back on track for human factors and usability testing with Providence, R.I.-based Ximedica.
The company, which closed a $6 million offering last month, put former Domain Surgical CEO McNally in the corner office in January. He succeeded interim chief John Barker, who was named to replace John Hargrove last October while the company searched for a full-time CEO.