Current Report Filing (8-k)
January 07 2020 - 5:19PM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
January 7, 2020
Titan
Pharmaceuticals, Inc.
(Exact name of registrant as specified in
its charter)
Delaware
(State or other jurisdiction of incorporation)
001-13341
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94-3171940
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(Commission File Number)
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(IRS Employer Identification No.)
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400 Oyster Point Blvd., Suite 505, South
San Francisco, CA 94080
(Address of principal executive offices
and zip code)
650-244-4990
(Registrant's telephone number including
area code)
(Registrant's former name or former address,
if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of registrant under any of the following provisions:
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Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant
to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))
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Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 1.01. Entry into Material Definitive
Agreement
On January 7, 2020, Titan Pharmaceuticals,
Inc. (the “Company”) entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain
accredited institutional investors (the “Purchasers”) pursuant to which the Company shall issue to the Purchasers,
in a registered direct offering and concurrent private placement, 8,700,000 shares (the “Shares”) of the Company’s
common stock, par value $0.001 per share (“Common Stock”), and warrants to purchase 8,700,000 shares of Common Stock
(the “Warrants”) with an exercise price of $0.25 per share. The negotiated combined purchase price for one Share and
one Warrant will be $0.25. The Company expects to receive aggregate gross proceeds in the offering of approximately $2.2 million,
before deducting fees to the placement agent and other estimated offering expenses payable by the Company. The Shares are being
offered by the Company pursuant to an effective shelf registration statement on Form S-3 (File No. 333-230742), which was declared
effective on April 24, 2019 (the “Registration Statement”). The Warrants and the shares of Common Stock issuable upon
exercise of the Warrants (the “Warrant Shares”) were issued in a concurrent private placement and have not been registered
under the Securities Act of 1933, as amended (the “Securities Act”), and are instead being offered pursuant to the
exemption provided in Section 4(a)(2) under the Securities Act and Rule 506(b) promulgated thereunder. The Warrants will be exercisable
commencing on the later of (i) six months from the date of issuance or (ii) the date that the Company’s stockholders approve
a reverse stock split (the “Reverse Split”) in an amount sufficient to permit the exercise in full of all of the Warrants,
and will expire on the five year and six month anniversary of the issuance date.
Pursuant to the terms of the Purchase Agreement,
until the later of (i) 30 days following the closing of the offering and (ii) the effective date of the Reverse Split, the Company
will not issue (or enter into any agreement to issue) any shares of Common Stock or Common Stock equivalents and will not file
any registration statements, in each case subject to certain exceptions.
The exercise price of the Warrants and
the Warrant Shares will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization,
reorganization or similar transaction, as described in the Warrants. The Warrants will be exercisable on a “cashless”
basis in certain circumstances.
The Company has agreed to file a registration
statement to register the resale of the Warrant Shares within 120 days of the date of the Purchase Agreement and to obtain effectiveness
of such registration statement within 181 days following the closing of the offering, subject to certain exceptions. The Purchasers
have agreed not to resell or distribute the Warrants or the Warrant Shares to the public except pursuant to an effective registration
statement under the Securities Act or an exemption thereto.
Maxim Group LLC acted as the sole placement
agent (the “Placement Agent”) on a “reasonable best efforts” basis, in connection with the offering. A
copy of the Placement Agency Agreement, dated as of January 7, 2020, by and between the Company and the Placement Agent is attached
hereto as Exhibit 10.2 and incorporated herein by reference (the “Placement Agency Agreement”). Pursuant to the Placement
Agency Agreement, the Placement Agent will be entitled to a cash fee of 7% of the gross proceeds paid to the Company for the securities
sold in the offering and reimbursement of certain out-of-pocket expenses.
The foregoing summaries of the offering,
the securities to be issued in connection therewith, the Purchase Agreement, the Placement Agency Agreement and the Warrants do
not purport to be complete and are qualified in their entirety by reference to the definitive transaction documents, copies of
which are attached hereto as Exhibits 10.1, 10.2 and 4.1, respectively, and are incorporated herein by reference.
Item 3.02. Unregistered Sales of Equity
Securities
Please see the disclosure regarding the
Warrants and the Warrant Shares set forth under Item 1.01, which is incorporated by reference into this Item 3.02.
Item 8.01. Other Events
On January 7, 2020, the Company issued
a press release regarding the transaction described in Item 1.01, a copy of which is attached hereto as Exhibit 99.1 and incorporated
herein by reference.
Item 9.01. Financial Statements and
Exhibits.
(d) Exhibits
The following exhibit is filed herewith:
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: January 7, 2020
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TITAN PHARMACEUTICALS, INC.
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By:
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/s/ Sunil Bhonsle
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Name:
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Sunil Bhonsle
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Title:
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President and Chief Executive Officer
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