The Company intends to use the net proceeds of the Offering as follows:
?Build five first in-human units of its SPORTTM Surgical System
Fund anticipated negative cash flow from operating activities and working capital
Total Net Proceeds
Notes:
(1) Canadian figures are based on an exchange rate of USD $1 equals CDN $1.3158.
Proceeds from the Offering(1) US $5.48 million
(CDN $ 7.21 million)
US $1.37 million (CDN $ 1.80 million)
US $6.85 million (CDN $ 9.01 million)
?Please see “Business of the Company – Development Objectives” for a detailed description of the development milestones of the Company and the estimated costs associated therewith.
The Company intends to use the funds available to it as stated in this prospectus supplement; however, there may be circumstances where, for sound business reasons, a reallocation of funds may be deemed prudent or necessary. See “Risk Factors - Risks Relating to the Offering and the Units”.
Additional funding will be required, despite completion of the Offering, for the development and commercialization of the SPORTTM Surgical System, currently estimated at approximately US $57 million. At September 30, 2015, the Company had approximately US $10,085,394 in cash and cash equivalents and working capital of approximately US $3,644,644 excluding warrant liability. The Company anticipates that it will be able to continue to operate for 3 months from September 30, 2015 based on the current amount of its cash on hand and short term securities and its current rate of expenditures, not including the proceeds from the Offering or funds received or receivable from Longtai in connection with the Letter Agreement. If the full proceeds of the Offering are received by the Company, it is expected that the Company will be able to continue to operate for 5 months from October, 2015 based on the current amount of its cash on hand, short term securities, the proceeds from the Offering and its current rate of expenditures. The Company expects that approximately US $30,000,000 in incremental funding will be required by the end of 2016 to maintain it’s currently anticipated pace of development. If additional funding is not available, the pace of the Company’s development plan may be reduced and the Company may not be able to continue as a going concern. See “Risk Factors”.
