Titan Medical Inc. (Nasdaq: TMDI; TSX: TMD), a medical technologycompany focused on single access robotic-assisted surgery (RAS)system, today announced the company will implement certaincost-cutting measures with a view to preserving capital to supportthe strategic review process announced on November 30, 2022 whileallowing the company to continue working on the investigationaldevice exemption (IDE) filing with the U.S. Food and DrugAdministration (FDA). As part of this plan, the company’s U.S.subsidiary will be temporarily furloughing approximately 40employees at its Chapel Hill, North Carolina facility effectiveimmediately.
“While the company works through the strategic review process,and in view of the company’s capital position and the challengingmarket conditions, we have had to make the extremely difficultdecision to place some of our employees on furlough,” said CaryVance, Titan’s President and Chief Executive Officer. “Theseemployees have made valuable contributions to the development ofrobotic assisted technologies, and as we have communicated to theimpacted employees, we look forward to bringing our employees backto work if and as soon as we are able. While this is not the newswe would want to have been sharing, it is a necessary measure thatallows us to strategically maintain a workforce that supports thestrategic review process while continuing to make progress towardsan IDE filing.”
With this announcement, the company will limit work to tasksrelated to the strategic review process, the IDE filing andfulfilling certain other contractual development and supplyobligations. The cost-cutting measures will impact the timing andcosts of the company’s milestones and the company is thereforewithdrawing all forward-looking statements included in itscontinuous disclosure documents and other documents filed on SEDARor EDGAR with respect to the cost and timing of the development ofits Enos surgical system.
About Titan Medical
Titan Medical Inc. (Nasdaq: TMDI; TSX: TMD), a medical devicecompany headquartered in Toronto, Ontario and with operations inChapel Hill, North Carolina, is focused on enhancing roboticassisted surgery using innovative technology through a singleaccess point. The Enos™ robotic single access surgical system isbeing developed with an ergonomic focus to provide a surgicalexperience that imitates real-life movements that surgeons demandand includes multi-articulating instruments designed to allowsurgeons an increased range of motion in a confined space, withdexterity and the ability to exert the forces necessary to completecommon surgical tasks. With the Enos system, Titan intends toinitially pursue gynecologic surgical indications. On November 30,2022, the company announced the commencement of a strategic reviewprocess that will consider a full range of strategic alternativesincluding corporate sale, merger or other business combination, asale of all or a portion of the company’s assets, strategicinvestment or other significant transaction.
Enos™ is a trademark of Titan Medical Inc.
For more information,visitwww.titanmedicalinc.comandfollow@TitanMedicalon Twitter andLinkedIn.
Forward-Looking Statements
This news release contains “forward-looking statements” within themeaning of applicable Canadian and U.S. securities laws, whichreflect the current expectations of management of the company’sfuture growth, results of operations, performance and businessprospects and opportunities. Forward-looking statements arefrequently, but not always, identified by words such as “may”,“would”, “could”, “will”, “anticipate”, “believe”, “plan”,“expect”, “intend”, “estimate”, “potential for” and similarexpressions, although these words may not be present in allforward-looking statements. Forward-looking statements that appearin this release may include, without limitation, references to: thecompany’s plan to implement cost-cutting measures with a view topreserving capital to support the strategic review process; thecompany’s intention to temporarily furlough approximately 40employees; the fact that the company will limit work to tasksrelated to the strategic review process, the IDE filing andfulfilling certain other contractual development and supplyobligations; the company’s focus on single access robotic assistedsurgery; the Enos system providing a surgical experience thatimitates real-life movements; the Enos platform being designed topromote faster recovery, shorter hospital stays, lower risk ofinfection, fewer scars and less post-operative pain; Titan’smission of improving outcomes for patients, hospitals and surgeons;and the company’s intention to initially pursue gynecologicsurgical indications with the Enos system.
These forward-looking statements reflect management’s currentbeliefs with respect to future events and are based on informationcurrently available to management that, while considered reasonableby management as of the date on which the statements are made, areinherently subject to significant business, economic andcompetitive uncertainties and contingencies which could result inactions, events, conditions, results, performance or achievementsto be materially different from those projected in theforward-looking statements. Forward-looking statements involvesignificant risks, uncertainties and assumptions and many factorscould cause the company’s actual results, performance orachievements to be materially different from any future results,performance or achievements that may be expressed or implied bysuch forward-looking statements. Such factors and assumptionsinclude, but are not limited to, the Company’s ability to retainkey personnel and/or recall personnel from furlough; its ability toexecute on its business plans and strategies; the sufficiency ofits working capital to continue to fund its operations during itsstrategic review process and other factors listed in the “RiskFactors” section of the company’s Annual Report for the fiscal yearended December 31, 2021 (which may be viewed at www.sedar.com andat www.sec.gov). Should one or more of these risks or uncertaintiesmaterialize, or should assumptions underlying the forward-lookingstatements prove incorrect, actual results, performance, orachievements may vary materially from those expressed or implied bythe forward-looking statements contained in this news release.These factors should be considered carefully, and prospectiveinvestors should not place undue reliance on the forward-lookingstatements.
Although the forward-looking statements contained in the newsrelease are based upon what management currently believes to bereasonable assumptions and the company has attempted to identifyimportant factors that could cause actual actions, events,conditions, results, performance or achievements to differmaterially from those described in forward-looking statements, thecompany cannot assure prospective investors that actual results,performance or achievements will be consistent with theseforward-looking statements. Except as required by law, the companyexpressly disclaims any intention or obligation to update or reviseany forward-looking statements whether as a result of newinformation, future events or otherwise. Accordingly, investorsshould not place undue reliance on forward-looking statements. Allthe forward-looking statements are expressly qualified by theforegoing cautionary statements.
Contact
Kristen Galfetti
Vice President, Investor Relations & CorporateCommunications
+1-781-869-2553
investors@titanmedicalinc.com
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