Due to the Inability to Find a Buyer, Titan Medical will Lay Off More Employees

Shares of Titan Medical Inc. have been temporarily halted at 87 cents after Titan Medical said that they have not received a bid to purchase the company, so they are implementing additional cost-cutting measures, such as layoffs, in order to cut expenses further.

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The Titan board of directors decided at its meeting in November that undertaking a review and evaluation of strategic alternatives was in the best interests of the company as well as its stakeholders. Raymond James was engaged to act as Titan's financial adviser to do so.

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During the financial adviser's and Titan leadership team's engagement with more than 40 potential counterparties, Titan's financial advisers conducted a comprehensive outreach, participated in multiple presentations by Titan's management team, and cooperated with potential counterparties in conducting a confidential due diligence review.

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In the end, none of the parties expressed a desire to buy the business of the company, and none of them submitted any proposals in order to seek a purchase.

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As I mentioned in the opening paragraph, Titan's technology requires a specialized approach, and it takes a considerable amount of time to get products to market, so it presented a smaller pool of potential investors. Many of the parties cited a number of factors including the stage and focus of development of the company's technology, the financial situation of the party, and a focus on the party's own operational activities at the present time.

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It is imperative that Titan continues to look for alternatives; however, effective immediately, Titan will take further steps to reduce costs, including layoffs of 48 employees at a subsidiary's Chapel Hill operations, which include all employees furloughed on December 6, as well as those employed at the subsidiary's Chapel Hill operations. In the event of the reduction of these employees, the remaining 18 employees will be responsible for supporting an upcoming strategic transaction, including selling the company's assets; completing deliverables pursuant to certain contractual obligations involving development and supply; maintaining the company's intellectual property portfolio; and maintaining the company's administrative and compliance duties.

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Taking into account Titan's working capital constraints, the company has decided to cease all costs associated with the development of its Enos single-access RAS system, including all work related to the investigational device exemption application for regulatory approval from the Food and Drug Administration (FDA).

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Furthermore, Heather Knight is resigning from the board of directors with effect from Monday, October 15, 2018.