Titan Announces $35 Million Equity Agreement
Thursday September 29, 7:00 am ET
[At current share prices, Cornell would end up owning about 60 % of Titan if the credit line is fully utilized. Strange deal. What will Cornell do now? Start selling short in order to build up a buffer for Titan's drawings from the credit line, maybe. I am not sure this is such a great idea seen from Titan's perspective. But I guess their options were limited].
SOUTH SAN FRANCISCO, Calif., Sept. 29 /PRNewswire-FirstCall/ -- Titan Pharmaceuticals, Inc. (Amex: TTP - News) announced today that it has entered into an equity line of credit agreement with Cornell Capital Partners, LP. Under the agreement, Cornell has agreed to provide up to $35 million of funding that can be accessed at the Company's discretion over a 24-month period through issuance of common stock of the Company. Any sale of common shares to Cornell will be based on a five day weighted average market price at the time of the transaction, and Cornell will receive a five percent fee on the value of such stock purchase. Proceeds received by the Company will be used for product development activities, as well as for general corporate purposes.
Any sale of common stock under the agreement will occur pursuant to an effective registration statement, which the Company will establish prior to selling any shares of common stock that it may sell under the agreement.
"We are pleased to enter into this agreement," stated Dr. Louis R. Bucalo, Chairman, President and CEO. "This funding structure provides the flexibility to access additional equity capital at selected times when additional capital or liquidity is desirable." |
