Titan Pharmaceuticals stock tumbles after pricing public offering

Titan Pharmaceuticals Inc (NASDAQ:TTNP) stock dropped on Friday after announcing the pricing of an underwritten public offering which will raise US$9.5mln for the company but was greeted negatively by investors in the market.

The securities offered by the company consist of 5.1mln shares of common stock and warrants to purchase 5.1mln shares of common stock, and Class B Units consisting of 8,225 shares of our Series A Convertible Preferred Stock, with a stated value of $1,000 per share, and convertible into an aggregate of 32.9mln shares of common stock.

There are also warrants exercisable for the number of shares of common stock into which the shares of Series A Convertible Preferred Stock are convertible. The warrants will have an exercise price of US$0.25, will be exercisable upon issuance and will expire five years from the date of issuance.

Shares of Titan sank 55.25% to trade at US$0.224, having hit a session low of US$0.2167.

Titan granted the underwriters a 45-day option to purchase additional shares of common stock and/or additional warrants. The offering is expected to close on September 25, 2018.

Titan Pharmaceuticals is a commercial stage company developing proprietary therapeutics with its ProNeura long-term, continuous drug delivery technology. The company’s lead product is Probuphine, a novel and long-acting formulation of buprenorphine for the long-term maintenance treatment of opioid dependence.

The company is based in South San Francisco, California.

Story by ProactiveInvestors