Titan Pharmaceuticals Announces $1 Million Private Placement of Convertible Preferred Stock
Titan Pharmaceuticals (NASDAQ: TTNP) has completed a $1 million private placement through the sale of Series B Convertible Preferred Stock to Blue Harbour Asset Management. The agreement involves the purchase of 100,000 preferred shares at a conversion price of $3.00.
The deal includes a beneficial ownership conversion blocker that prevents Blue Harbour from acquiring more than 19.99% of Titan's outstanding common stock or the maximum percentage permissible under Nasdaq rules without shareholder approval. The shares were sold through a private placement under Regulation S of the Securities Act.
The companies have also entered into a registration rights agreement, with ARC Group serving as the sole financial advisor for the transaction.
Titan Pharmaceuticals (NASDAQ: TTNP) ha completato un collocamento privato da 1 milione di dollari attraverso la vendita di azioni privilegiate convertibili di Serie B a Blue Harbour Asset Management. L'accordo prevede l'acquisto di 100.000 azioni privilegiate a un prezzo di conversione di 3,00 dollari.
L'accordo include un blocco di conversione della proprietà vantaggiosa che impedisce a Blue Harbour di acquisire più del 19,99% delle azioni ordinarie in circolazione di Titan o la percentuale massima consentita dalle normative Nasdaq senza l'approvazione degli azionisti. Le azioni sono state vendute attraverso un collocamento privato ai sensi della Regolamentazione S della Securities Act.
Le aziende hanno anche stipulato un accordo sui diritti di registrazione, con ARC Group che funge da unico consulente finanziario per la transazione.
Titan Pharmaceuticals (NASDAQ: TTNP) ha completado un colocación privada de 1 millón de dólares a través de la venta de acciones preferentes convertibles de la Serie B a Blue Harbour Asset Management. El acuerdo implica la compra de 100,000 acciones preferentes a un precio de conversión de 3,00 dólares.
El acuerdo incluye un bloqueador de conversión de propiedad beneficiosa que impide a Blue Harbour adquirir más del 19.99% de las acciones ordinarias en circulación de Titan o el porcentaje máximo permitido según las reglas de Nasdaq sin la aprobación de los accionistas. Las acciones se vendieron a través de una colocación privada bajo la Regulación S de la Ley de Valores.
Las empresas también han firmado un acuerdo de derechos de registro, con ARC Group actuando como único asesor financiero para la transacción.
타이탄 제약 (NASDAQ: TTNP)은 블루 하버 자산 관리에게 100만 달러 규모의 사모 배정을 완료했습니다. 이 계약은 3.00달러의 전환 가격으로 100,000주의 우선주를 구매하는 것입니다.
이 거래에는 블루 하버가 타이탄의 발행된 보통주 19.99% 이상을 취득하거나 주주 승인 없이 나스닥 규정에 따라 허용된 최대 비율을 초과하는 것을 방지하는 유리한 소유권 전환 차단기가 포함되어 있습니다. 주식은 증권법의 규제 S에 따라 사모 배정을 통해 판매되었습니다.
두 회사는 또한 ARC 그룹이 거래의 단독 재무 자문 역할을 하는 등록 권리 계약을 체결했습니다.
Titan Pharmaceuticals (NASDAQ: TTNP) a complété un placement privé de 1 million de dollars par la vente d'actions privilégiées convertibles de série B à Blue Harbour Asset Management. L'accord concerne l'achat de 100 000 actions privilégiées à un prix de conversion de 3,00 dollars.
L'accord comprend un bloqueur de conversion de propriété avantageux qui empêche Blue Harbour d'acquérir plus de 19,99 % des actions ordinaires en circulation de Titan ou le pourcentage maximum autorisé selon les règles de Nasdaq sans l'approbation des actionnaires. Les actions ont été vendues par le biais d'un placement privé en vertu de la réglementation S de la Securities Act.
Les entreprises ont également conclu un accord sur les droits d'enregistrement, avec ARC Group agissant en tant que conseiller financier unique pour la transaction.
Titan Pharmaceuticals (NASDAQ: TTNP) hat eine Private Placement in Höhe von 1 Million Dollar abgeschlossen, indem es Serie B wandelbare Vorzugsaktien an Blue Harbour Asset Management verkauft hat. Die Vereinbarung umfasst den Kauf von 100.000 Vorzugsaktien zu einem Umwandlungspreis von 3,00 Dollar.
Der Deal beinhaltet einen Umwandlungsblocker für vorteilhafte Eigentumsrechte, der verhindert, dass Blue Harbour mehr als 19,99 % der ausstehenden Stammaktien von Titan erwirbt oder den maximal zulässigen Prozentsatz gemäß den Nasdaq-Regeln ohne die Genehmigung der Aktionäre überschreitet. Die Aktien wurden im Rahmen eines Private Placements gemäß Regulation S des Securities Act verkauft.
Die Unternehmen haben außerdem eine Vereinbarung über Registrierungsrechte getroffen, wobei die ARC Group als alleiniger Finanzberater für die Transaktion fungiert.
- Secured $1 million in immediate funding through preferred stock sale
- Strategic investment from institutional investor Blue Harbour Asset Management
- Ownership dilution protection through 19.99% beneficial ownership blocker
- Small financing amount may indicate investor interest
- Potential future dilution for existing shareholders upon preferred stock conversion
- Reliance on private placement suggests possible challenges in accessing public markets
Insights
Titan Pharmaceuticals' $1 million private placement represents a strategic but potentially dilutive capital raise that warrants close investor attention. This financing equals roughly 29% of Titan's current $3.4 million market cap, making it a significant capital event despite the modest absolute dollar amount.
The $3.00 conversion price represents a 20.4% discount to the current share price of $3.77, which is concerning as it indicates Blue Harbour negotiated favorable terms at existing shareholders' expense. This pricing suggests Titan may have had financing options or urgent capital needs.
The transaction structure includes standard protective provisions limiting Blue Harbour's potential ownership to prevent stealth takeovers, while the registration rights agreement ensures Blue Harbour can eventually sell their converted shares on the open market.
For a micro-cap pharmaceutical company like Titan, securing institutional investment from Blue Harbour could be viewed as a vote of confidence, but the steep discount and relative size of the placement indicate potential liquidity challenges. The company hasn't disclosed specific use of proceeds, leaving questions about how long this capital will sustain operations and what developmental milestones it might support.
Existing shareholders should carefully consider the dilutive impact of this financing and what it signals about Titan's current financial position and capital raising capabilities.
NEW YORK, April 11, 2025 (GLOBE NEWSWIRE) -- Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) ("Titan" or the "Company") announced today that, pursuant to a securities purchase agreement (the “Purchase Agreement”) with Blue Harbour Asset Management L.L.C-FZ (“Blue Harbour”), it has completed a private placement of the Company’s newly designated Series B Convertible Preferred Stock (the “Preferred Stock”). Pursuant to the Purchase Agreement, Blue Harbour purchased 100,000 shares of Preferred Stock for an aggregate purchase price of
The Certificate of Designations authorizing the Preferred Stock contains a beneficial ownership conversion "blocker" that prevents Blue Harbour from acquiring the lower of either (i) the maximum percentage of common stock permissible under Nasdaq rules and regulations without first obtaining shareholder approval or (ii)
The shares being sold in this transaction do not involve a public offering and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance on Regulation S thereunder. Titan and Blue Harbour have concurrently entered into a registration rights agreement (the “Registration Rights Agreement”) pursuant to which Titan has agreed to provide certain registration rights upon the occurrence of certain events set forth in the Registration Rights Agreement. Additional information regarding the agreement can be found in an 8-K that was filed with the SEC: https://ir.titanpharm.com/all-sec-filings.
ARC Group Ltd. served as sole financial advisor to Titan in the private placement.
Forward-Looking Statements
This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to our product development programs and any other statements that are not historical facts. Such statements involve risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from management's current expectations include those risks and uncertainties relating to our ability to raise capital, the regulatory approval process, the development, testing, production and marketing of our drug candidates, patent and intellectual property matters and strategic agreements and relationships. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law. A complete discussion of the risks and uncertainties that may affect Titan's business, including the business of its subsidiary, is included in "Risk Factors" in the Company's most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.
Media & Investor Contacts:
Chay Weei Jye
Chief Executive Officer
(786) 769-7512
FAQ
What is the value and structure of TTNP's recent private placement deal?
What ownership restrictions are placed on Blue Harbour in the TTNP deal?
How will the TTNP preferred stock placement be registered?
Who advised Titan Pharmaceuticals (TTNP) on the private placement?
