Titan Medical (TMDI) Investor Update summary

Strategic review and merger process

• After an extensive search and outreach to over 40 potential partners, Conavi was selected as the best merger candidate due to its strong product, technology, regulatory, and commercialization plans, as well as its management and investor base.

• The merger process was independently validated by Glass Lewis and ISS, and Raymond James provided a fairness opinion after a rigorous valuation analysis.

• If the merger is not approved, the likely alternative is an orderly wind-down of the company, with minimal cash returned to shareholders.

• The shareholder vote on the merger is scheduled for September 30, 2024, and cannot be adjourned or extended.

• All Titan assets, including patents and robots, will become assets of the resulting issuer, with Titan shareholders owning a 10% stake in Conavi.

Financial and shareholder considerations

• Post-merger, Titan shareholders will receive 4,561,594 common shares valued at CAD 6.243 million, or CAD 1.37 per share (pre-consolidation: CAD 0.0547 per share).

• A return of cash instead of the merger would result in a residual value of only $0.01–$0.015 per share, compared to $0.04 per share in Conavi.

• Conavi has received subscriptions from principal shareholders and is on track to close its financing in time for the transaction.

• Titan's net operating loss value is reported at CAD 290 million, but the market for such tax losses has diminished and there was no interest from other companies.

Conavi Medical business and product update

• Conavi's Novasight Hybrid system uniquely combines IVUS and OCT imaging modalities in a single catheter, addressing a large unmet need in coronary interventions and aiming to expand into peripheral vascular applications.

• The system is cleared in the U.S., Canada, China, and Japan, and is being deployed in top hospitals while next-generation technology is being readied for FDA submission.

• Novasight 3.0 is nearing design freeze, targeting state-of-the-art imaging, ease of use, and scalable design with attractive margins.

• The company operates a razor-razorblade pricing model and has strong patent protection in major geographies.