- Titan Pharmaceuticals (TTNP, Financial) raises $1 million through a private placement with Blue Harbour Asset Management.
- 100,000 Series B Convertible Preferred Stock shares sold at a $3.00 conversion price.
- Ownership capped at 19.99% to align with Nasdaq regulations, preventing excessive dilution.
Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) has successfully completed a $1 million private placement, marking a strategic financing initiative. The transaction was completed through the sale of 100,000 shares of Series B Convertible Preferred Stock to Blue Harbour Asset Management, an institutional investor with notable market presence.
The preferred shares are issued at a conversion price of $3.00 each, representing a tactical move to raise capital while simultaneously managing ownership dilution. This conversion price stands at a notable 20.4% discount to Titan's current share price of $3.77, reflecting a concession potentially necessary to secure the investment under favorable conditions for Blue Harbour.
Key to this arrangement is a beneficial ownership conversion blocker. This provision is incorporated to ensure Blue Harbour cannot acquire more than 19.99% of Titan's outstanding common stock without shareholder approval, complying with Nasdaq's regulatory framework and maintaining a check on ownership concentration.
The shares involved in this placement are not a part of any public offering and are sold under Regulation S of the Securities Act. Furthermore, a registration rights agreement accompanies this placement, ensuring that Blue Harbour can eventually convert and sell their shares under specified future conditions.
ARC Group Ltd. served as the sole financial advisor to Titan Pharmaceuticals for this transaction, providing strategic oversight and execution support.
