Titan Medical Announces Executive Leadership Updates and Receipt of Nasdaq Notification Regarding Audit Committee Requirements By Investing.com

Titan Medical (NASDAQ:) Inc. (the “Company” or “Titan”) (Nasdaq: TMDI; TSX: TMD) today announced senior leadership changes and the receipt of a notification from the Nasdaq Stock Market LLC Listing Qualifications Department stating that following the resignation of Heather Knight from the Company’s board of directors and audit committee, the Company no longer complies with Nasdaq’s audit committee requirement set forth in Nasdaq Rule 5605.

Senior Leadership Changes

Following the announcement of February 8, 2023, the Company has decided to layoff certain members of the Company’s senior leadership team. Each of these individuals remain available to assist the Company as independent consultants. The following changes are effective immediately:

• Tammy Carrea is no longer VP, Quality and Regulatory Affairs of the Company. Ms. Carrea will continue to assist the Company, as needed, as an independent consultant with quality and regulatory matters, and to assist with the strategic review process;
• Kristen Galfetti is no longer VP, Investor Relations and Corporate Communications of the Company. Ms. Galfetti will continue to assist the Company, as needed, as an independent consultant with investor relations and corporate communications, and to assist with the strategic review process;
• Eric Heinz is no longer VP, Market and Corporate Development of the Company. Mr. Heinz will continue to assist the Company, as needed, as an independent consultant with corporate development activities, and to assist with the strategic review process; and
• Chris Seibert is no longer VP, Upstream Marketing of the Company. Mr. Seibert will continue to assist the Company, as needed, as an independent consultant with clinical and upstream marketing, and to assist with the strategic review process.

“I would like to thank Tammy, Kristen, Eric and Chris for their contributions to Titan Medical and their continued professionalism,” said Cary Vance, President and CEO of Titan Medical. “This was an extremely difficult decision, and I am grateful that each of these talented individuals will continue to be available in consulting roles to assist the Company during the strategic review process.”

Nasdaq Notification Re: Listing Rule 5605

Nasdaq Listing Rule 5605(b)(1) states that the Company’s board of directors must consist of a majority independent directors and Listing Rule 5605(c)(2) states that the Company’s audit committee must consist of at least three members, all of whom are independent. Following Ms. Heather Knight’s resignation, the Company’s audit committee consists of only two members who are independent directors as defined in Rule 5605(a)(2).

However, in accordance with Listing Rule 5605(c)(4), Nasdaq has provided the Company a cure period in order to regain compliance, being the earlier of the Company’s next annual shareholders’ meeting or February 7, 2024; or if the next annual shareholders’ meeting is held before August 7, 2023, then the Company must evidence compliance no later than August 7, 2023.

The Company is also listed on the Toronto Stock Exchange and the notification letter does not affect the Company’s compliance status with such listing.