For all equity investors recent years weeks are actually a brutal experience: most people are poorer compared to they were at the beginning of the season.
Investors in Titan Medical Inc., a company that’s focused “on the design and advancement of a robotic surgical system for application in non-invasive surgery,” have experienced the identical pattern.
But with an added dimension: unbelievable volatility.
The shares are actually trading about 50 % the total amount these were trading at in the heart of the other day with the main news as an overnight marketed offering of units (a $10.5-million deal that closed Friday); along with the company telling our world on Feb. 3 that, inside the request of IIROC Market Surveillance, it “is unacquainted with any material undisclosed development at this time which will increase the risk for recent movement within the Company’s stock price.”
And some shareholders are angry. “As existing shareholders we’ve suffered the anguish from the company raising $10 million,” said one noting that Titan also raised two plenty of equity last November, US$4 million utilizing a private placement and $11.5 million utilizing a public offering.
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Here it’s time line that has caused those shareholders being upset:
Two weeks back (Jan. 29) the shares traded at $1.30 C a 20 percent gain for the week;Noisy . area of the following week, the stock closed higher and reached $1.50 on Feb. 2 after hitting $1.83 by having an intraday basis. Daily volume was twice the standard;On Feb. 3, carrying out a markets closed, Titan C which closed at $1.45 a share – announced an overnight-marketed offering. It could sell units (shares and warrants) while using terms being occur the context of the market.On Feb. 4 the shares came by almost 35 % to $0.95 and fell using a further $0.15 in the morning. Volume was a much more than Ten times the conventional.One possible reason behind the large rise in trading is the fact unit offerings allow investors to purchase units and short the stock knowing they could cover rapid sale for exercise the warrant.Another possible explanation was that resistant to the norm, the offering agent hadn’t attracted enough investors to seal the offering before markets opened. At lunchtime on Feb. 4 Titan provided an “update” and said the agent (Bloom Burton) “is continuing to advertise the offering,” with further updates provided when available.
Stephen Randall, Titan’s chief financial officer, said, “we were unable to close it one thing every single day as anticipated,” adding “some in the commitments didn’t complete. We never might have gone inside it when we didn’t think we’d an entire book.”
On Feb. 5 Titan stated it would sell around 8.9 million units – with every unit which includes a share plus a warrant C at $0.90 per unit. The cost of the units represented a substantial discount towards the shares’ closing price your day the sale was announced.On Friday, Titan closed it’s offering: it raised more capital than originally planned but for the first-time in a minimal each week the stock closed higher.
“It is a success, because we raised money. We’re a noticable difference stage company and do things: raise money and stand,” said Randall noting Titan’s recent experience continues “a pattern we have seen once we perform a raise. The world thinks we obtain hit by short sellers.”
Financial Post
bcritchley@nationalpost.com
