Titan Medical (TSX:TMD;OTC:TITFX) announced today that it received the final milestone payment under an agreement with Medtronic (NYSE:MDT).
Toronto-based Titan Medical confirmed the completion of the final milestone under a development and license agreement on Jan. 4 and announced today that, along with the payment, the senior secured loan from Medtronic as part of the agreement has been retired.
Medtronic provided Titan with a net payment of $8.3 million, comprised of a $10 million milestone payment related to achieving the final milestone and a $0.6 million payment related to certain legal, transaction and intellectual property costs. A portion of the $10.6 million gross total was used to retire the $2.3 million senior secured loan, which included the original note of $1.5 million, plus $0.6 million in additional costs and $0.2 million in interest, according to a news release.
The two companies entered into the development and license agreement in June 2020. Titan achieved all three milestones laid out in the agreement, including raising $18 million in capital in October 2020. It also received a $10 million payment for the second milestone and an additional $11 million for the completion of the third technical milestone.
Under the development and license agreement, technologies developed may be used by both Titan and Medtronic in their respective businesses. Titan filed several new patent applications due to its development activity. At the same time, it retains worldwide rights to independently commercialize technologies for use with its Enos robotic single access surgical system.
At the time of completing the final milestone earlier this month, Titan Medical Interim President and CEO Paul Cataford said in a news release that the “development and license agreement and collaboration has provided capital and the opportunity to further develop our team and our single-access platform.”