Titan Pharmaceuticals Inc. priced an underwritten public offering of units to raise $9 million in gross proceeds.
After the South San Francisco-based pharmaceutical company issued the pricing information, the stock tumbled 51%, closing at 18 cents on Oct. 16. The previous day's closing price was 36.75 cents.
Titan Pharmaceuticals, which develops implants for maintenance treatment of opioid addiction, is selling 40 million units in the offering at 22.5 cents apiece. Each unit in the offering consists of a common share and a class B warrant to purchase one common share. The class B warrants can be exercised within five years to purchase one common share of Titan Pharmaceuticals for 22.5 cents.
Additionally, the company has granted underwriters an option to purchase up to 6 million common shares and/or class B warrants to purchase up to 6 million common shares.
Titan Pharmaceuticals expects to close the offering on or about Oct. 18, subject to closing conditions.
Maxim Group LLC is the sole book-running manager for the offering.