Did TITAN MEDICAL INC COM NPV (OTCMKTS:TITXF) Just Reveal Its Funding Strategy With Latest Raise?

TITAN MEDICAL INC COM NPV (OTCMKTS:TITXF) has been a tough stock to hold over the last few quarters. The company, which we have highlighted on a number of occasions during the period in question, currently trades for a little over $0.25 a share – pretty much flat on its 2016 close, but down 50% on its early January highs, and at the low end of its 52-week range.As is so often the case at this end of the market, and especially in the healthcare and biotechnology space, price action has been dictated by sentiment more than anything else (read: operational developments), and right now, sentiment is not great. Cash issues, management shuffling, patent problems, development delays – all these things are contriving to create a negative market perception of the company, and drawing attention away from what really matters, it's lead technology asset.Of course, just because a company has a great bit of tech as a lead asset (and as we’ve said a few times in the past, this one does), doesn’t mean it's going to reward shareholders – management has to do what it is paid to do if said tech is going to start cashing out on its potential.Unfortunately, running into the latter quarter of 2016, this company basically stalled. It ran out of cash, leadership lost its anchoring, and development ground to a halt. As mentioned briefly above, there's now a new CEO in place, and we think that this was an important step in getting things restarted. A cash raise at the end of last year allowed development of the SPORT tech to resume, but as we noted in this coverage, it wasn’t enough to bring it home from an FDA green light perspective.Again, however, referencing the coverage we've just linked to, that the funds wouldn’t be enough to carry SPORT through to commercialization wasn’t too much of an issue. Sure, it would have been nice to be fully funded, but the dilutive hit would have been pretty severe, and what was really important was getting things moving again. As we surmised, it just meant that the pot would need topping up again relatively near term.And we're at that point now, as highlighted by Titan's latest release.On March 7, the company announced that it will undertake an overnight marketed public offering. A day later, Titan announced the pricing of said offering, and reported it will be issuing a mixture of shares and warrants to the tune of $5.6 million.A couple of things are noteworthy here.First, that this again isn’t going to be enough to get the product to market. And again, we don't see this as too much of an issue, so long as (and this is pretty important) it gets the company to an important milestone. If the new CEO wants to raise a bit now, spend it on reaching a milestone and then raise some more at a higher PPS (based on the reaching of said milestone) a little farther down the line, that makes sense to us.Second, that the structure of the raise (a mixture of shares and warrants) and the expiries associated with the issued units minimizes its dilutive impact for shareholders. Like we said earlier, sentiment is not great on this one right now; the more management can do to limit degradation of this already weak sentiment, the better. This dilution minimizing strategy shows that the new chief is keeping his shareholders in mind when making these sorts of decisions, and that – again – makes sense to us.So where does this leave things?Well, there's a presentation set to take place on March 14 at ROTH, and we will be watching the presentation for any indication of what the above mentioned milestone (the one that the five million or so netted dollars should fund through to) will be. The company is basically limping towards commercialization, but so long as there's some structure to the forward movement (and there looks to be) then limping is fine.Again, the company being able to avoid diluting shareholders (or maybe better to say diluting them to the lowest degree possible) is key here. If it can achieve this, the company could be a nice play ahead of commercialization.We will be updating our subscribers as soon as we know more. For the latest updates on TITXF, sign up below!Disclosure: We have no position in TITXF and have not been compensated for this article.