The acquisition announcement comes after Titan’s over-a-year review of strategic options after citing cash concerns and limited access to new capital in 2022.

Katie Hobbins, Managing Editor

March 19, 2024

2 Min Read
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Titan Medical has found its path forward after reporting in 2022 that it would review strategic options citing cash concerns and limited access to new capital. Titan announced yesterday that Toronto, Canada-based Conavi Medical would acquire it in a reverse takeover that will take the combined company public.

After the decision to strategically review options in 2022, last year Titan implemented additional cost cutting measures and stopped spending on the development of its Enos system. The company sold non-exclusive licenses to its intellectual property to other surgical robotics companies including Intuitive Surgical, Medtronic, and Johnson & Johnson’s Auris Health, and saw several company executives step down, including former CEO Cary Vance.

Originally seeking a takeover agreement within the robotic surgery space, Titan broadened its search to developers like Conavi after that plan was deemed as not viable.

“This merger is the result of a thoughtful and careful review of strategic options and reflects the continued commitment of our management team and board of directors to deliver value to shareholders,” said Paul Cataford, Titan’s interim CEO and board chair. “Conavi is an exciting commercial-stage company with groundbreaking technology and an accomplished management team.”

As part of the transaction, Titan plans to delist its shares from the Toronto Stock Exchange on July 15 and apply to have them listed on the TSX Venture Exchange. Conavi, in the press release announcing the amalgamation agreement, said it will raise between $15 million and $20 million in financing. The deal gives Conavi a pre-money valuation of $69.8 million. Titan’s valuation is $5 million plus the amount of cash held in the company when the acquisition is completed – minus certain liabilities. A subsidy of Titan will merge with Conavi.

The Titan company name is expected to be changed to Conavi Medical or other options approved by its company shareholders.

Once combined, the new company will focus on commercializing Conavi’s Novasight Hybrid System. Novasight is a catheter-based device used as a guide in minimally invasive coronary procedures.

“This planned merger comes at a pivotal moment in the evolution of our company as we continue to advance the Novasight Hybrid System, which provides simultaneous and complementary data with which to better inform patient care, while offering providers a more cost- and space-effective option when purchasing intravascular imaging equipment,” said Thomas Looby, Conavi CEO. “Gaining access to the public capital markets will enhance our financial strength and fuel our growth strategy, enabling us to unlock the full potential of our hybrid imaging technology in the United States and globally.”

The companies have not disclosed a definitive acquisition timeline.

About the Author(s)

Katie Hobbins

Managing Editor, MD+DI

Katie Hobbins is managing editor for MD+DI and joined the team in July 2022. She boasts multiple previous editorial roles in print and multimedia medical journalism, including dermatology, medical aesthetics, and pediatric medicine. She graduated from Cleveland State University in 2018 with a bachelor's degree in journalism and promotional communications. She enjoys yoga, hand embroidery, and anything DIY. You can reach her at [email protected].

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