On June 20, 2023, Titan Medical Inc. issued a corporate update on its successful transition to an IP licensing company. Given the state of the capital markets such that emerging tech issuers have generally faced severe challenges in raising capital for pre-revenue and development stage projects, Titan has determined to focus on exploring opportunities to generate revenue from the licensing of its existing patent portfolio, and as previously announced:

• the Company has terminated its R&D operations and has substantially cut operating expenses including management compensation and G&A expenses; and
• the Company has signed two licensing agreements as previously disclosed with two major players in the surgical robotic industry for total upfront payments of USD$15.5 million.

We believe that the two licensing deals validate the importance and value of our patent portfolio and we continue to pursue discussions with other parties toward additional non-exclusive licensing arrangements. With the influx of new cash from the two recent licensing agreements and the termination of our R&D operations, the Company continues to manage its payables and expects to meet its projected obligations well into 2024. As part of the transition away from R&D operations, we are also exploring opportunities for the sale of our testing and manufacturing equipment.

Finally, the Company will also explore opportunities for a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities (a “Business Combination”). Although the Company will not be limited to a particular industry or sector for purposes of consummating a Business Combination, the Company intends to focus primarily on biotech, medtech and other life sciences and technology sectors.