Titan Medical Inc (TMDIF)

[BIGKAHUNA57]

Reply 127665 - SPORT. While you speculate that MDT could have "given" the $18M to Titan, you are also aware (or you are now) that (IMO) they wouldn't publicly disclose that they are taking an equity stake in TMDI b/c it would spike the SP. You may speculate that I'm guessing. Sure I am. But (I'll bet) everyone on this board would like to have more shares before MDT announces an equity stake in TMDI before it happens.

So my first question would be: "Why would MDT care about spiking TMDI's share price?" B/C it happened to MDT previously with Mazor and (IMO) it would not be viewed as a wise strategic business decision to increase the sp, with the possibility of a BO or as a possible future competitor. If the sp was $25 a share, and TMDI put out a prospectus of 10M shares, that would get them to where ever they wanted to go without MDT.

So, by inference of your point of reference, MDT clearly wants some future outcome to remain in their entire control. B/C the Mazor business arrangement was completely out of their control.

05.18.2016 Mazor announced 2 strategic agreements with MDT. The details of which disclosed both agreements, timelines, plans and partnership details.

https://www.businesswire.com/news/home/20160518005367/en/Mazor-Robotics-Signs-Strategic-Commercial-and-Investment-Agreements-With-Medtronic-a-Global-Leader-in-Spine-Technologies-and-Solutions

05.13.16 The stock was just above $10 per share. Before 05.31.16 the sp was nearly $17. Mazor just launched Mazor X in October 2016.

https://investors.mazorrobotics.com/stock-information

Then Mazor signed an EXCLUSIVE agreement with MDT to sell and distribute the Mazor X.

In May 2016 we entered into a strategic, two-phase Exclusive Lead Sharing and Distribution Agreement and a Purchase Agreement with Medtronic and certain of its affiliates. In August 2017, we entered the next phase of this agreement, in which Medtronic assumed global exclusive commercial rights to the Mazor X system for spine surgeries. We rely significantly on the results of Medtronic’s sales, as our exclusive global distributor of the Mazor X for spine surgeries. Failure by Medtronic to generate Mazor X system sales and support of the clinical installed base, could have substantial impact on our business.

I'll let those that analyze financial statements decide whether Mazor was in worse shape financially in 2017, as compared to TMDI now.

https://last10k.com/sec-filings/mzor

We have sustained net losses in every fiscal year since our inception in 2000, including a net loss of $12.4 million for the year ended December 31, 2017. As of December 31, 2017, we had total shareholders’ equity of $113.8 million and cash and cash equivalents, short term investments and long-term investments of approximately $108.3 million. Our accumulated deficit as of December 31, 2017 was $134.3 million. We anticipate that we will continue to incur substantial net losses for at least the next 12 months as we expand our research and development team to support the existing and new capabilities of the Mazor X system and Renaissance, or our Robotic Guidance Systems, and expand their adoption and clinical implementation. Our losses have had and will continue to have an adverse effect on our shareholders’ equity and working capital. Any failure to achieve and maintain profitability would continue to have an adverse effect on our shareholders’ equity and working capital and could result in a decline in our share price or cause us to cease operations.

Mazor was generating revenue. By end of 2017 a little over $100M, but with deficits of +$134M.

However...by 11.24.17 the share price was over $60.00. It did drop to the low $50's, but then shot back up to over $70 soon thereafter.

ANSWER: That's why MDT didn't make an announcement that they were "giving" Titan $18M.

So my thoughts would take me to question why such different executions? Why lock down a simple development agreement at all? Why the $1.5M loan? Why require that TMDI wait until after the 4th milestone to pay off the loan? Why include an extended period after the 4th milestone from which to payoff the loan?

When is a simple (secret) project NOT a simple (secret) development project?

Just a little food for thought.

Good luck to all. Regards,BK