Ms. Kristen Galfetti reports
TITAN MEDICAL IMPLEMENTS COST-CUTTING MEASURES TO SUPPORT STRATEGIC REVIEW PROCESS
Titan Medical Inc. will implement certain cost-cutting measures with a view to preserving capital to support the strategic review process announced on Nov. 30, 2022, while allowing the company to continue working on the investigational device exemption (IDE) filing with the U.S. Food and Drug Administration (FDA). As part of this plan, the company's United States subsidiary will be temporarily furloughing approximately 40 employees at its Chapel Hill, N.C., facility, effective immediately.
"While the company works through the strategic review process, and in view of the company's capital position and the challenging market conditions, we have had to make the extremely difficult decision to place some of our employees on furlough," said Cary Vance, Titan's president and chief executive officer. "These employees have made valuable contributions to the development of robotic-assisted technologies, and as we have communicated to the impacted employees, we look forward to bringing our employees back to work if, and as soon as, we are able. While this is not the news we would want to have been sharing, it is a necessary measure that allows us to strategically maintain a work force that supports the strategic review process while continuing to make progress towards an IDE filing."
With this announcement, the company will limit work to tasks related to the strategic review process, the IDE filing, and fulfilling certain other contractual development and supply obligations. The cost-cutting measures will impact the timing and costs of the company's milestones, and the company is therefore withdrawing all forward-looking statements included in its continuous disclosure documents and other documents filed on SEDAR or EDGAR with respect to the cost and timing of the development of its Enos surgical system.
Titan Medical, a medical device company headquartered in Toronto, Ont., and with operations in Chapel Hill, N.C., is focused on enhancing robotic-assisted surgery using innovative technology through a single access point. The Enos robotic single-access surgical system is being developed with an ergonomic focus to provide a surgical experience that imitates real-life movements that surgeons demand. The Enos system includes multiarticulating instruments designed to allow surgeons an increased range of motion in a confined space, with dexterity and the ability to exert the forces necessary to complete common surgical tasks. With the Enos system, Titan intends to initially pursue gynecologic surgical indications. On Nov. 30, 2022, the company announced the commencement of a strategic review process that will consider a full range of strategic alternatives, including corporate sale, merger or other business combination, a sale of all or a portion of the company's assets, strategic investment, or other significant transaction.
Enos is a trademark of Titan Medical Inc.
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