Titan Medical Inc (TMDIF)

[FISH21049]

Titan Medical Announces US$2.0 Million Registered Direct Offering Priced At-the-Market Under Nasdaq Rules

Business Wire
Business Wire•May 4, 2020

Titan Medical Inc. ("Titan" or the "Company") (TSX:TMD) (Nasdaq:TMDI), a medical device company focused on the design, development and commercialization of a robotic surgical system for application in minimally invasive surgery ("MIS"), is pleased to announce today that it has entered into definitive agreements with institutional investors that provide for the purchase and sale of 5,514,504 common shares of the Company (the "Common Shares") at a per share purchase price of US$0.36268 per Common Share in a registered direct offering priced at-the-market under Nasdaq rules, resulting in expected total gross proceeds of approximately US$2.0 million. In addition, Titan has agreed to issue to the investors unregistered warrants to purchase up to an aggregate of 2,757,252 Common Share purchase warrants (each, a "Warrant"). Each whole Warrant is exercisable to purchase one Common Share (a "Warrant Share") at an exercise price of US$0.3002 per Common Share for a period of five and one-half (5.5) years following the date of closing of the offering.

H.C. Wainwright & Co. is acting as the exclusive placement agent for the offering.

The closing of the sale of the securities is expected to occur on or about May 6, 2020, subject to the satisfaction of customary closing conditions including required approvals from the Toronto Stock Exchange ("TSX"). Titan intends to use the net proceeds from the offering for general corporate purposes including: resuming the development of its single-port robotic surgical system, instruments and accessories; funding working capital (including the reduction of outstanding payables); and capital expenditures.

The Common Shares (but not the Warrants or the Common Shares underlying the Warrants) are being offered and sold in the registered direct offering by Titan pursuant to a "shelf" registration statement on Form F-3 (Registration No. 333-232898), including a base prospectus, previously filed with and declared effective by the Securities and Exchange Commission (the "SEC") on August 2, 2019. The offering of the Common Shares will be made only by means of a prospectus supplement that forms a part of the registration statement to be dated on or about May 4, 2020. The prospectus supplement will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Electronic copies of the prospectus supplement and accompanying base prospectus may also be obtained, when available, by contacting H.C. Wainwright & Co., LLC at 430 Park Avenue, 3rd Floor, New York, NY 10022, by phone at 646-975-6996 or e-mail at [e-mail].

The Warrants described above were offered in a private placement under the United States Securities Act of 1933, as amended (the "Act"), and the Warrants and Common Shares issuable upon exercise of the Warrants have not been registered under the Act or applicable state securities laws. Accordingly, the Warrants and Common Shares issuable upon exercise of the Warrants may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction, and no securities will be offered or sold to residents of Canada.

The TSX has confirmed that the Company qualifies as an "Eligible Interlisted Issuer" pursuant to Section 602.1 of the TSX Company Manual which provides that the TSX will not apply certain of its requirements to issuers whose shares are listed on another recognized stock exchange such as the Nasdaq Capital Market. The TSX has determined to accept notice of the Offering and has conditionally approved for listing up to an additional 29,328,422 Common Shares.