Titan Medical Inc (TSE: TMD, NASDAQ:TMDI) has revealed its pricing plans for a secondary stock offering, a move which is not being welcomed by investors.
Shares in the Canadian medical device company shed nearly 22% to hover at C$2.85 in Wednesday’s afternoon session on the Toronto Stock Exchange, a day after the developer of robotic surgical systems said it would issue units at a price of US$2.50 per unit (C$3.25) to raise proceeds of between US$16mln to US$20mln (C$20.82mln to C$26.03mln).
Each unit is made up of a single share of Titan as well as a purchase warrant, which can be exercised for one share at a price of US$3.20 (C$4.16) for a period of five years following the closing of the offering.
Bloom Burton Securities is acting as the agent on the offering and the units will also be put up for sale in the United States via broker-dealers.
Titan’s final prospectus for the offering has been filed in the provinces of Ontario, British Columbia, and Alberta.
Based in Toronto, Titan, which also lists in the US on the Nasdaq, specializes in computer-assisted robotic surgical systems that are used in minimally-invasive surgeries.
The proceeds from the offering will be put towards the development of these devices as well as for working capital.
Contact Ellen Kelleher at [email protected]