Titan Medical Inc. (TSX VENTURE:TMD) is pleased to announce that it has agreed that Union Securities Ltd. will serve as the sole lead agent in connection with the previously announced private placement offering of units by Titan and that the offering will not be syndicated.
The offering is for minimum gross proceeds of $3 Million (or such other amount as the company shall determine) and maximum gross proceeds of $5 Million. Each unit, to be issued at $0.40, will comprise one common share of Titan and a 1/2 warrant. A whole warrant shall entitle its holder to purchase one additional common share for $0.48 and shall expire 18 months following closing.
If the maximum proceeds are achieved, Titan has agreed to grant to the lead agent an over-allotment option to purchase up to an additional 2,500,000 units at a price of $0.40 per unit. The over-allotment option may be exercised within 10 business days of the closing date, and the resulting purchase and sale of units shall be completed within 30 days of the closing date. The Company has agreed to pay a cash commission at closing of 7% in respect of the gross proceeds from the sale of units under the offering and the over-allotment option. In addition, Titan will issue at closing a number of non-assignable compensation options equal to 7% of all units sold pursuant to the offering and the over-allotment option. Each compensation option will entitle the agent to purchase one unit at $0.40 at any time prior to the date that is 24 months from the closing date.
All securities to be issued under the offering, and the compensation option and the over-allotment option as well as the securities issuable upon exercise of such options, will be subject to resale restrictions for a period of 4 months from the closing date under applicable securities laws and the policies of the TSX Venture Exchange. The offering is subject to approval by the TSX Venture Exchange.