By Chris Wack
Titan Medical Inc. shares were halted at 87 cents after the company said no parties have submitted a bid to buy it, so it is instituting more cost-cutting measures, including layoffs.
In November, Titan's board of directors determined that it was in the best interests of the company and its stakeholders to undertake a review and evaluation of strategic alternatives, and engaged Raymond James as financial adviser.
The financial adviser and members of Titan's leadership team conducted a comprehensive outreach to more than 40 potential counterparties, engaged in a number of management presentations and cooperated in confidential due diligence reviews by a subset of the potential counterparties.
None of the parties expressed an interest in buying the company's business, and none chose to submit a proposal.
The specialized nature of Titan's technology and the time to bring a product to market presented a smaller pool of potentially interested parties. A number of the parties cited the stage and focus of the company's technology development, the party's financial circumstances, and a priority focus on the party's own current business operations.
While Titan continues to seek alternatives, effective immediately, it will initiate further cost-cutting measures, including a layoff of 48 employees at the Chapel Hill operations of a wholly owned subsidiary, which includes all employees furloughed on Dec. 6. With these cuts, the remaining 18 employees will focus on supporting a potential strategic transaction including a sale of the company's assets; continuing to complete deliverables pursuant to certain contractual development and supply obligations; maintaining its intellectual property portfolio; and continuing corporate administrative and compliance obligations.
Having regard to its working capital limitations, Titan has halted all expenditures related to the development of its Enos single-access RAS system, including work on the investigational device exemption filing with the U.S. Food and Drug Administration.
Also, Heather Knight resigned as a member of the board, effective Monday.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
February 08, 2023 09:44 ET (14:44 GMT)
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