Current Report Filing (8-k)
August 08 2019 - 5:30PM
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):
August 7, 2019
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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¨
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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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¨
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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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¨
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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.
¨
Securities
registered pursuant to Section 12(b) of the Act:
Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.001
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TTNP
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Nasdaq Capital Market
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Item 1.01. Entry into Material Definitive
Agreement
On August 7, 2019, Titan
Pharmaceuticals, Inc. (the “Company”) entered into a Securities Purchase Agreement (the “Purchase
Agreement”) with a single accredited institutional investor (the “Purchaser”) pursuant to which the Company
shall issue to the Purchaser, in a registered direct offering and concurrent private placement, 1,480,000 shares (the
“Shares”) of the Company’s common stock, par value $0.001 per share (“Common Stock”), 1,372,314
pre-funded warrants to purchase shares of Common Stock (the “Pre-Funded Warrants”) with an exercise price of
$0.01 per share, which such Pre-Funded Warrants are to be issued in lieu of Shares to ensure that the Purchaser does not
exceed certain beneficial ownership limitations, and warrants to purchase 2,852,314 shares of Common Stock (the
“Placement Warrants” and collectively with the Pre-Funded Warrants, the “Warrants”) with an exercise
price of $1.07 per share. The negotiated combined purchase price for one Share and one Placement Warrant will be $0.75 and
the combined purchase price for one Pre-Funded Warrant and one Placement Warrant will be $0.74. The Company expects to
receive aggregate gross proceeds in the offering of approximately $2.1 million, before deducting fees to the placement agent
and other estimated offering expenses payable by the Company. The Shares and Pre-Funded Warrants 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 Placement Warrants and the shares of Common Stock issuable
upon exercise of the Placement Warrants (the “Placement Warrant Shares”) are being 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 Placement Warrants will be exercisable commencing six months from the date of issuance and will
expire five years following the initial exercise date.
Pursuant to the terms of the Purchase Agreement,
the Company has agreed to certain restrictions on future stock offerings, including that during the 30-day period following the
closing, the Company will not issue (or enter into any agreement to issue) any shares of Common Stock or Common Stock equivalents,
subject to certain exceptions, and will not file any registration statements. The Company also granted to the Purchaser a participation
right in future financings for a period of two years following the closing in an amount up to 50% of the offering amount in such
future financing.
The exercise price of the Warrants and
the shares of the Common Stock issuable upon the exercise thereof 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 Placement 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 Purchaser has agreed not to resell or distribute the Placement Warrants or the Placement 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 August 7, 2019, 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, the Pre-Funded Warrants
and the Placement 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, 4.1 and 4.2, respectively, and are incorporated herein by
reference.
Item 3.02. Unregistered Sales of Equity
Securities
Please see the disclosure regarding the
Placement Warrants and the Placement Warrant Shares set forth under Item 1.01, which is incorporated by reference into this Item
3.02.
Item 8.01. Other Events
On August 7, 2019, 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: August 8, 2019
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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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