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Correction to my last message...I meant to say "by the inverse of the dilution" not "the inverse of the reverse split."
There is dilution on OTC, dilution on Nasdaq, dilution if there is a private equity deal. What uplisting will get us is a significant increase in demand for shares. Accepting dilution as a a long wouldn't be so bad if the market cap increased by the inverse of the reverse split.
And as to things happening overnight, I think the one thing we've all learned here is that any move we make takes time. But I'd rather see McNally do things that are long plays than slapping short term bandaids on this to stop the bleeding.
I still believe the best path is for them (and us) to hold our noses and do the RS to facilitate an uplist to NASDAQ. Alternatively, do like Transenterix did and get a flailing company that is *already* on NASDAQ (SafeStitch in their case) to acquire us which also serves to get us on the big exchange.
Let's talk non-dilutive funding...so I give Titan 60 million to finish SPORT and in return I get what instead of shares? Will it be interest on debt? Will it be a long-term royalty on every unit sold? What other avenues are there?
List of companies presenting next week at the Noble Conference:
https://www.noblelinx.com/presenters.php
You're right, not a huge amount of money. But since warrants are like insurance, you could look at this as the first $2,600 of a $17,600 share purchase that would only be profitable if the PPS is way higher than 0.75. Just my two cents.
I wonder if the insider who just picked up 20k of TMD WT.I did so because they don't expect the units to be in the money for a few years, or as a cheap way to pick up shares because they're going to be over the 0.75 strike soon?
A Titan insider picked up 20,000 of the "I" warrants on January 25, 2017. The purchase was at 0.13 per unit. These warrants expire in 2021, but have the lowest available strike price (0.75).
Source: Canadian Insider
Here's how I think this'll go down:
Titan is going to close in on design freeze just as Medtronic or Verb get ready to unveil their surgical robot.
Another of the device companies that didn't get on the robot bandwagon is going to panic. "What's the quickest path to adding a robot to our portfolio?"
McNally is going to say "well here's a finished one you can buy for X billion dollars.
Hopefully multiple companies will also want SPORT so they can add a robot to their portfolio, creating a bidding war.
Negotiations and profits ensue.
JMHO.
201k share bid as of 11:20am
There are a couple of different ways that I look at McNally's options grant. First of all, it could be a sign that he accepted a compensation package that is light on salary and heavy on options, which is a good thing since he'll only get paid if he performs. This will become clearer in about a month when Titan releases details on his salary with their 2016 EOY MD&A.
It also could be that the Board granted him options to reflect that he is CEO, President, and a Director. This is not out of line with the number of options that Hargrove and Rayman had, plus the options that a director on the Board has (I wanted to confirm this, but SEDI is down this morning).
It was an eye-opening grant, but as an investor I will be extremely happy if incentivizing McNally results in a healthy payday for all of us.
McNally got 8.325M options this week. See SEDI or Canadian Insider for details.
AND we got a new patent application today for a bipolar end effector apparatus:
https://worldwide.espacenet.com/publicationDetails/biblio?DB=worldwide.espacenet.com&II=0&ND=3&adjacent=true&locale=en_EP&FT=D&date=20170119&CC=WO&NR=2017008142A1&KC=A1
According to Canadian Insider, David McNally was granted 8.325M options on January 17.
We'll find out in the 2016 EOY MD&A on or before March 1.
Yep, agree. My guess is that Dr Fowler's lack of experience in developing a device this complex lead to the perception that the unit was close to done.
In my conversation with Barker, he indicated that the Board now feels that the SPORT roadshow in 2016 might have been premature. It gave the impression that SPORT is nearly finished, which is not the case. The form factor and mechanics are finished, but the system software, safety systems, etc are still ahead (and that's a non trivial task). With that in mind, I'm not sure if they'll exhibit SPORT again until it's closer to being commercially ready.
Look at it this way...we have gotten something new every Monday since the new year:
-David McNally came on as CEO (Jan 3)
-Reiza Rayman resigned from the Board (Jan 9)
-Engineering VP job posting goes live (Jan 16)
Let's hope the trend continues.
Perhaps, although his primary role is quality control. The FDA and CE mark role was just to fill the void left by Fowler.
Ugh...these guys from CPR international have AOL email accounts. Embarrassing. <facepalm>
A few things I gleaned from the new job posting:
-Titan is using executive search firm CPR International, based in Palm Beach, FL.
- They intend to continue functioning as a virtual company.
- Multiple subcontractors are in play (Ximedica, Plexus, Cadence, Live Data, Microline?) that will have to be managed by this person
- The VP of engineering will become responsible for IP (not sure if this means Jasminder Brar is out)
- The posting also suggests that they're going to staff up internally from an R&D point of view (because this person is responsible for hiring those people)
- Lastly "excellent base salary and options" suggests to me that they have an idea of where they're going to get their next funding round (since they have to be on fumes by now)
That makes sense. The SAB members left are like the ambassadors to their specialties. For example, Dr. Advincula is probably the most well known robotic surgeon in the OBGYN space, which is important for Titan since benign hysterectomies with SPORT could provide huge case volumes.
Glad they kept the four best surgeons on the SAB. I'm liking this streamlined approach.
I think my days as the Titan Bloodhound are numbered. If these guys keep making very public moves as they have the past two Mondays, I won't need to search the depths of the Internet for crumbs...
Usually in cases like these, the Board politely gives one the chance to resign before being removed by force.
Interesting...a non medical Twitter handle run by Root Ventures tweeted out a pic of SPORT to 30k followers yesterday. See:
The SPORT robotic surgical system by Titan Medical. pic.twitter.com/3PLOiarjNL
— MachinePix (@MachinePix) January 9, 2017
It's interesting to note that a lot of key faces from the May 16 deck are no longer in the January 17 deck.
http://www.titanmedicalinc.com/wp-content/uploads/2016/06/titan-investor-presentation-5-24-16.pdf
Corporate presentation deck got a refresh last week:
http://www.titanmedicalinc.com/wp-content/uploads/2016/11/Titan-Medical-Investor-Presentation-January-5-2017.pdf
Thanks for the heads up. That makes more sense, but 1000 shares is still a small lot for an insider.
CAD
A very small 640 share block was bought by a Titan insider yesterday at .64. Per Canadian Insider
Like I said...interesting, not useful.
Interesting chatter about Titan:
https://profit.ly/ticker/TITXF?page=1&size=10
Scalpel, the traders may help propel things for the investors tomorrow if we see the share price break above the 200 day moving average at .515. That's an excellent technical signal that will support the momentum from the last couple of days.
You can tell the MMs are working to stay below the 200 day MA. That big sell order at .499 is struggling to fill.
Well over $1M shares this morning, and the PPS is flirting with .43 for the second time today.
It's good to finally see them taking the "running the business" side of things as seriously as the investment they've made in SPORT.
We would need to get way north of .75 and 1.00 in order for those warrants to really be in the money. I think the .75 warrants would need to be at least around .95 or 1.00 for anyone to seriously consider exercising them.
We'd probably need a combination of new CEO + low-dilution financing + a strong new industry partner in order to get the PPS back up there.
It's interesting to note that McNally has used a combination of debt and equity to fund some of his previous successes. Maybe this will open the door to the Board entertaining the idea of taking on some debt to get this over the finish line (hopefully with terms better than the NY deal ORrep8 alluded to).