Titan Pharmaceuticals to Receive $3 Million Loan
ADDITIONAL $1 MILLION IN EQUITY RAISED IN RECENT MONTHS
SOUTH SAN FRANCISCO, Calif., Dec. 21 /PRNewswire-FirstCall/ -- Titan Pharmaceuticals, Inc. (Pink Sheets: TTNP) today announced that it has entered into a Loan and Security Agreement with Oxford Finance Corporation ("Oxford") for a $3 million term loan. The loan will bear interest at an approximate rate of 13% per annum and be payable over three years. Under the terms of the agreement, Titan will pay Oxford an initial facility fee of $60,000 and a final payment fee of $180,000. The loan will be secured by Titan's assets and has a provision for pre-payment. Oxford will also receive five-year warrants to purchase approximately 43,000 shares at an exercise price equal to the lesser of the 10-day trailing average market price or the market price at closing.
In addition, Titan has recently received approximately $500,000 from the sale of 300,000 shares of common stock at $1.70 per share in a private placement to a single investor who participated in the company's December 2007 financing. These shares are currently restricted from trading and Titan has agreed to register the shares for resale under the Securities Act of 1933 ("Securities Act") once it has re-registered its shares under the Securities Exchange Act of 1934. The company has undertaken to file a Form 10 with the Securities and Exchange Commission ("SEC") on or prior to January 18, 2010 and to use its commercially reasonable efforts to effect such registration by April 15, 2010.
"The Board of Directors is very pleased with the progress made by the company," said Marc Rubin, MD, Executive Chairman of Titan. "Our Board members have also expressed their strong support by providing more than $500,000 in operating funds during this past few months through the exercise of options to purchase restricted shares," he added.
"This financing provides Titan with the immediate resources necessary to complete the process of becoming a reporting company again, and to keep the development of Probuphine® on track while also utilizing the support of the funds available through the NIH grant," said Sunil Bhonsle, President of Titan.
The shares of common stock and warrants described above have not been registered under the Securities Act, or state securities laws and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from the registration requirements.
About Titan Pharmaceuticals
For information concerning Titan Pharmaceuticals, Inc., please visit the company's website at www.titanpharm.com.
The press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to the company's development program and any other statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays in development, testing, regulatory approval, production and marketing of the company's drug candidates, adverse side effects or inadequate therapeutic efficacy of the company's drug candidates that could slow or prevent product development or commercialization, the uncertainty of patent protection for the company's intellectual property or trade secrets, and the company's ability to obtain additional financing. Such statements are based on management's current expectations, but actual results may differ materially due to various factors, including those risks and uncertainties mentioned or referred to in this press release.
Contact: Sunil Bhonsle, President 650-244-4990 email@example.com
SOURCE Titan Pharmaceuticals, Inc.
Released December 21, 2009