Titan Medical Inc. (TSX VENTURE:TMD) is pleased to announce that it has completed its private placement offering resulting in the issue of 5,822,000 units for gross proceeds of $2,328,800. Each unit was issued at $0.40 and comprises one common share of Titan and a 1/2 warrant. Each whole warrant entitles its holder to purchase one additional common share of Titan for $0.48 and will expire June 23, 2011. The offering remains subject to acceptance by the TSX Venture Exchange.
Union Securities Ltd. acted as agent in connection with the offering. At closing, Titan paid the agent and members of the selling group aggregate cash commission of 7% of the gross proceeds from the offering. In addition, Titan issued to the agent and members of the selling group a number of non-assignable compensation options equal to 7% of all units sold pursuant to the offering. Each compensation option entitles its holder to purchase one unit at $0.40 at any time prior to the date that is 24 months from the closing date.
Titan has granted to the agent a purchase option to arrange for the purchase of up to 20% of the number of units that were sold in the offering at a price of $0.40 per unit. The purchase 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. Titan has agreed to pay the agent aggregate cash commission of 7% of the gross proceeds from the sale of units pursuant to the purchase option. In addition, Titan has agreed to issue a number of non-assignable compensation options equal to 7% of all units sold pursuant to the purchase option.
All securities issued under the offering, and the compensation options and the purchase option as well as the securities issuable upon exercise of such options and the warrants, will be subject to resale restrictions from the closing of the private placement offering until April 23, 2010 under applicable securities laws and the policies of the TSX Venture Exchange.