Titan Medical Inc (TMDIF)

[66Mustang]

DRG, I expect some big players will express a serious interest starting after our FDA filing and maybe prior to approval. I think the current management team including BOD has a good idea what it will really be worth, and I'm not sure the big guys will offer enough up front, unless it becomes either a bidding war or a defensive move (someone buys us to prevent competition from buying us).

Every MD&A and Short Form Prospectus that I can recall echoes the same sentiment that (I just found it...) "the Company intends to utilize a direct sales force and/or distribution partner(s) to initiate marketing of the SPORT Surgical System to hospitals." They also throw in tidbits like "our intention to retain future earnings, if any, to finance expansion and growth" which probably would not be taken into consideration if their primary objective is to sell the company.

On the other hand, once they are established in the marketplace and moderately profitable, their value will likely be some multiple of their value at time of regulatory approval, so well worth the wait, maybe two to five years (depending on rate of adoption, capabilities of a distribution partner, etc.) to get their feet solidly planted for real negotiations. History for Mr. McNally is just that; get the organization on solid ground, optimize value, then sell. My best guess is a repeat performance.

Message in reply to:

Hate to break up the shop talk '66. But, do you think the chances of Titan being approached with serious solicitations of a buyout shortly after FDA clearance (Pre-Revenue streams) is probable? By "serious" I mean offers that get the attention of management to actually consider taking. Or do you think management is hell bent on going at it alone? Which is more probable in your opinion?