With Its Raise In The Rear View Mirror, TITAN MEDICAL INC COM NPV (OTCMKTS:TITXF) Is Cleared For Takeoff

We last looked at TITAN MEDICAL INC COM NPV (OTCMKTS:TITXF) a few weeks ago, as part of this coverage. At the time, the company had filed a prospectus with the Canadian regulatory agency and we highlighted this prospectus (available here on SEDAR) as potentially bringing about some upside momentum for Titan longer-term. We say longer-term because the prospectus served as a precursor to a near-term capital raise and – as is generally the case with the sort of raises – we expected the company to take a bit of a knock on the back of the dilution brought about by the equity issue.Our thesis was relatively simple – markets have struggled to look upon this one favorably based on the fact that we haven't really had any concrete timeframes against which to judge the progress of Titan's lead development asset, the SPORT surgical system. Absent of any development progress framework, therefore, it has been difficult to ascertain just how long (and, more specifically, how much capital) it is going to take before the company and its investors start to see a return on their input in the form of revenues from the technology in question.The prospectus served up some pretty solid milestones and – in doing so – removed a large portion of the uncertainty associated with this company from the equation. This risk removal, we argued, would remove a downside pressure that has been weighing on Titan's market capitalization for some time, and – in doing so – should translate to an upside reevaluation.So why are we revisiting this one today?Well, the raise just closed and things are playing out pretty much exactly as we expected. In response to the action we are seeing, therefore, we thought it best to take this opportunity to reaffirm our bias in light of the recent action, using the clarity afforded by the raise numbers we now have in hand (and which we didn’t have back mid-June when we last looked at this stock).The public offering closed on June 29, with Titan issuing 48.38 million units, with each unit comprised of one common share and one warrant to purchase one common share at CDN $0.20 for a period of five years. The total issue raised CDN $7.25 million. Further, we learned that an aggregate of 1.4 million units were issued to insiders of the company for gross proceeds of $216,896, which included all of the Company's directors and officers.So, the company is now capitalized sufficiently to get it through to its next major catalyst, which is rooted in the development of software for the prototype of the above-noted SPORT system, and has aligned its success with that of its spectrum of directors and officers through the just noted insider unit purchases. That's great news.Sure, a raise isn't ideal for early shareholders, but it's part and parcel of this end of the biotechnology sector and, with the unit type offering, dilution has been mitigated somewhat.Looking at price, and as we suggested would likely be the case, Titan dipped to fresh lows subsequent to the pricing of the offering being announced, bottoming out at around $0.10 a share at the end of June. The company now trades at $0.12 a share, having gained around 23% early this week, and we think this is the start of a longer-term recovery for Titan. This expectation is based on the fact that – at its current price – the company looks incredibly cheap. Combine that with a raft of near-term catalysts, and the removal of any near-term dilution risk and Titan looks like it could be a solid third-quarter play.Looking longer term, we are probably going to see more capital raises (we went into this in some detail in our previous coverage, so readers looking for the numbers should check that out here) but so long as each raise finances the company's advance towards a major catalyst, dilution shouldn't be too much of an issue.Catch up with the whole story: check out our previous coverage of TITXF here.We will be updating our subscribers as soon as we know more. For the latest updates on TITXF, sign up below!Image courtesy of techboy_t via FlickrDisclosure: We have no position in TITXF and have not been compensated for this article.