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There is a lot of blaspheming about the offering. Keep in mind that even if the offering was maxed out immediately, there is a lengthy process associated with closing of the offering. After the offering is filled, a closing date is scheduled and coordinated among parties and documentation and fund availability has to be set up. In addition to that process, the OSC has a review period (and comment period) before the final prospectus is filed. Patience. Buying opportunity.
Odd still that Titan is trading in lock step with the toy robot.
Odd price action. Feels like manipulation. You have low volume ask at .328 then a jump to .38.
Need off the OTCs.
Why do you say that? It's only 5.5% off prior close. Bid is typically at or lower than prior close unless there is news pre-market.
Have to agree. It’s all about valuation, not s/o. And the reverse is all about institutional viability and credibility, not share consolidation. It’s just a byproduct.
L&S
All relative to comp set so rn it’s ISRG. Their market cap has at least doubled over same timeline you mention, and TRXC is in the dust, so existing market is far different. Put ISRG multiple on titan’s projected CF in year 5.
Nice catch IITF
They are setting themselves up to be funded through 2018. They will likely engage in partnerships for distribution if they go it alone, but I'll put my money on a liquidity event in 2018 or just after.
Should open up after offering closes.
This is a big hit to the shorts that have been hanging around for so long.
For years now, Titan has been incredibly predictable and easy to short. The only data points you needed were burn rate and cash on hand.
Now that there is a full runway of cash, and positive news will likely continue, there is considerably more risk to be short.
Hopefully this yields a shift in behavior and we see mostly upward momentum from here on out.
L&S
Share price should explode. This is a huge move to remove risk. Funded well into FDA submission. Amazing stuff.
Can you resend the Bloomberg info? I? don’t think there are any analysts running takeout valuations right now. Titan has no coverage. That was probably an algo blurb.
I'm not implying anything. I'm stating that with the max raise (not including an overallotment), Titan would need an additional $10m to get to the end of Q3. It's spelled out in the filing.
Funding is the biggest obstacle, especially on the OTCs. There is no control over what the market may do, nor can we predict how all trials will go, or what competitors may do, regulatory changes, etc. Anything negative would impact our ability to raise capital. Titan is in a great place today and there is a tremendous amount of interest which makes it easier to raise capital. There is downside in the dilutive nature, but this mitigates the future risk of funding. It's a smart move by management despite everyone's hurt feelings. Also, if Titan uplists within the next several months, the value proposition will be much better to institutional investors if we have a runway of cash as opposed to needing to do an imminent raise.
To your point regarding clinical success, demand should be higher, yes, but at that point there should be nothing keeping the share price from running higher if we don't need more cash immediately.
WIN-WIN
L&S
Lunchtime search led me to an amended short form prospectus that was filed on SEDAR last night. They completely revised the explanation of current funds and future funds needed.
See pages 26-27 for the full description.
The key takeaway is that with completion of the max offering, Titan is good with cash for 7.5 months from today. Beyond that, they will only need an additional $10 mil to get through the end of Q3.
This is great news and a huge burden removed. Titan should be able to get that money through the exercise of warrants. Share price should run free for a while now.
Interesting interview with Huennekens. Says Verb is not building their own robot. Assume they will have many partners.
https://www.slideshare.net/mobile/JosephMullings2/how-verb-surgical-will-deliver-on-surgery-40-by-tina-tan
They're updating the corporate presentation. Down from the website.
Yea, these sound like comments from people that aren't interested. COME ON GUYS!
Advincula: "The future of single-port robotic surgery is bright and I am excited to actively participate in this journey with Titan Medical."
Burke: "I must say that the SPORT system, with its sophistication, makes a highly compelling case for single-port robotic surgery."
SPORT, I laid this out for you so you can understand where I am getting the numbers.
They are directly in the short form prospectus. Also, if you read the footnotes related to the milestone table, they outline R&D costs versus administrative.
This is direct from the company
The printing company solicits the shareholder information directly from brokers/custodians. Titan does not have the info.
Let me break this down for Team Titan before this gets exhausted.
As of 9/30/17:
+ $5.9m (4Q17)
+ $10.0 (1Q18)
+ $9.5m (2Q18)
+ $9.5m (3Q18)
= $34.9m needed for 9/30/17 to 9/30/18
Assuming a linear burn rate, we can assume that Titan burned through $3m up until 11/13/17.
As of 11/13/17:
+ $2.9m (4Q17)
+ $10.0 (1Q18)
+ $9.5m (2Q18)
+ $9.5m (3Q18)
= $31.9m needed for 11/14/17 to 9/30/18
- $14m cash on hand
- $12m cap raise 11/15/17
= $5.9m to get to the end of Q3
THIS PUTS TITAN IN A GREAT POSITION FOR 2018
The numbers don’t bridge. Look at that milestone table.
This is directly from the call script:
In March, we completed a capital raise led by Bloom Burton Securities, Inc. yielded US$5 million. In June, we completed a capital raise yielding US$7 million. As noted earlier, in August, we converted the US$2 million distribution deposit to equity held by Longtai. In October, we completed our US$2.7 million surgeon-led private placement. In September and October, we received US$7.1 million financing proceeds as a result of warrants exercised. Already in this month of November we have received US$1.7 million financing proceeds as a result of warrants exercised. As a result, our cash position, including deposits on hand with our product development partners exceeds US$14 million. At our projected burn rate, our present capital position will carry us into the second quarter of 2018.
After reading that, now let's assume that we only have half of what we need for Q2 so we would need an additional ~$5 mil. After this raise, assuming we fill the max, that would be an additional $12 mil which will leave us just $2-3 mil from having all funds to get us through Q3 as outlined in the milestones.
Added here, we all know this is a bargain at this level when we get through the emotions.
NOT MUCH MONEY NEEDED UNTIL SUBMISSION AFTER THIS RAISE. THAT'S HUGE.
Everyone will agree with your thoughts, but they are mostly speculative in nature.
There's just no guarantee of higher PPS at a later date, this is the prudent play. The inherent risk in the day-to-day forces management to act this way.
Pricing is announced at $.50 CDN, min $13m CDN, max $15 CDN. Warrants at $.60.
That's good I think
I slept on it and I'm with you Quid and 66. Poor timing, but great to get the money. Warrants are no guarantee and who knows what market conditions may be like next year when funds are needed. This will allow management to focus on more critical items like regulatory submission and M&A.
Full speed ahead.
Ok. Confused bc I? thought Randall mentioned yesterday that we have $14 currently?
That was as of 9/30. That number should be about $20 mil now.
IITF, Flendy, thoughts?
Wonder if Mc got a call from an institutional investor after yesterday’s call.
Very surprising but this is money they didn't want to turn down. In addition, if this allows a fatter wallet to further accelerate the timeline, I'm all for it. And perhaps this adds longer-term stability in the event of a near-term uplist to NASDAQ.
Also, Mc has a major vested interest at .56 cents so doing an offering today is not in his best interest if he wanted to sneak out somehow. He knows the deal. My take here is that he is positioning this for a buyout in mid-2018.
There are many pros and cons but further dilution always stinks.
You can't focus on share price, have to consider market value. What's your fair assessment of Titan's value, holistically, today and mid-2018?
I think we are significantly undervalued today. Depending on warrant exercise or tack-on financing, things could change, but at today's s/o, I believe we should be closer to $1 today, and should be closer to $2 mid-2018.
JMO and impossible to predict, especially while manipulation continues on the OTCs.
Good points, scalpel and razor.
Also, honey, the shift in behavior is because the company stands in an excellent position today relative to 2 years ago. There is structure, funding, and an attainable, relatively near-term finish line for shareholders. There was almost nothing but uncertainty at that point with what proved to be very inept management.
An hour until open, but early ask looking strong at .51.
I? think this call was to quiet the naysayers. How is this list below not exciting?! Let’s go TITAN!
-Potentially accelerated timeline
-Funded into Q2
-Active warrant exercise minimizing dilution from need for add-on financings
-Active partnership conversations
-Active institutional investor conversations
-Strasbourg unit placed
-Columbia validation achieved
-SPORT better than expected in current form
-Mgmt understands R/S dynamics and managing post-split
WOW - funded into Q2!!!! Great news
This is GREAT! Potentially accelerated timeline and the same great results from Columbia! Keep it coming McNally!
Big day tomorrow!
Looks like it may be the running of the bulls this afternoon.
Can't wait to hear McNally's sweet voice discuss all the recent positive developments with SPORT.
Technical posters, did this morning’s move look like a true increase then a quick profit take or manipulation? Quite a quick pullback off the high, seems like an artificial suppression.
You retain same ownership %. Nobody actually wants a reverse and it’s not about patience. Would need to organically grow to $4 per share to uplist anyhow which is a big task.
Uplist is crucial to 1) get rid of the manipulation and 2) allow for institutional investors
Fingers crossed for a partnership of some kind. Funding worries mostly removed. Reverse at $1-$1.50 in Q1. Then a 10:1 split to NASDAQ. Then design freeze to keep the train moving.
Looks like it was around $300+ mil around the time of submission, and spiked to nearly double that in anticipation of clearance. We should be at least double those numbers based on feedback and market opportunity.
https://www.zacks.com/stock/chart/TRXC/fundamental/market-cap
Shares are irrelevant, look at market cap instead
Titan is way undervalued based on that and a different beast than TRXC was then, so should command a significant premium to TRXC pre-submission
Market and industry dynamics have also shifted in our favor to offer additional tailwinds
We need an uplist to rid of the OTC games so we can get a real, sensible value on this puppy
Great buying opp at these levels