Titan Medical to lay off staff as asset sale takes priority
Seeking Alpha
2/8/2023
- Canada-based Titan Medical (NASDAQ:TMDI) announced plans to lay off as many as 49 employees on Wednesday as the MedTech company prioritizes the sale of assets amid an ongoing strategic review.
- The company said that the board had prioritized the sale of all or a part of its assets as its previously disclosed review for strategic alternatives has failed to draw buyout interest.
- The potential sale includes Titan’s (TMDI) intellectual property portfolio of more than 235 patents and patent applications.
- The management will also implement immediate cost-cutting initiatives, including the removal of 48 employees at the company’s Chapel Hill operations. The layoffs will include those who were temporarily furloughed in December.
- The company will retain 18 staff to focus on ongoing operations, including potential strategic transactions and maintaining its IP portfolio.
- Citing the ongoing strategic review process, Titan (TMDI) does not rule out further cost-cutting measures.
- The company shares have plunged over the past six months leading to a Nasdaq notice in December on failure to meet the minimum bid price requirement.
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