SOUTH SAN FRANCISCO, Calif., Sept. 28 /PRNewswire-FirstCall/ -- Titan Pharmaceuticals, Inc. (OTC Bulletin Board: TTNP) today announced that it has entered into an Amended Loan and Security Agreement with Oxford Finance Corporation ("Oxford") for an additional $5 million term loan. The loan bears interest at the rate of 13% per annum and is payable over 39 months, with interest only payments during the first nine months. The loan is secured by all of Titan's assets and can be repaid in full at any time. Under the terms of the agreement, Titan paid Oxford an initial facility fee of $125,000 and is required to make a final payment fee of $300,000 which may be reduced to $175,000, under certain circumstances, if the loan is repaid within one year. Oxford also received five-year warrants to purchase 287,356 shares at an exercise price of $.87, which is the lesser of the 10-day trailing average market price or the market price on the day immediately preceding the closing.
"This financing together with the funds available through the NIH grant provides Titan with the resources necessary to complete the confirmatory Phase 3 study of ProbuphineTM currently in progress, and have results available in the second quarter of next year," said Sunil Bhonsle, President of Titan.
"The board is very pleased with the rapid progress made in the ongoing Phase 3 clinical study of Probuphine, and also with the opportunity to present scientific information on this important product to international scientists and clinicians at the International Society of Addiction Medicine Conference on October 6, 2010," said Marc Rubin MD, Executive Chairman of Titan.
The warrants described above have not been registered under the Securities Act or state securities laws and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from the registration requirements.
About Titan Pharmaceuticals
For information concerning Titan Pharmaceuticals, Inc., please visit the Company's website at www.titanpharm.com.