Titan Pharmaceuticals Inc (TTNP)

[Serenity3]

My understanding of amendment to loan terms
• TTNP to repay 3 mill
• TTNP to repay 1 million by May 2018 under either condition
? TTNP finds 5 million cash and pays Horizon the 1 mil or
? TTNP sells shares to pay Horizon the 1 mil
• Horizon will continue their loan to TTNP of 3 million interest only in place
? Secured now by a lien on TTNP intellectual property
§ (advantage Horizon)
? Monthly payment to Horizon on 7 mil was = $57k/month.. (TTNP has been paying Horizon since August)
§ Monthly payment to Horizon on 7 mil, given that Libor has increased, now = $62k/month
§ Eliminating 3 mil of principle, TTNP owes interest only on 4 mil = 36k/month..
§ Paying off another 1 mil by May would reduce principal to 3 mil & interest = 27k/month
? (advantage TTNP)
• No prepayment penalty as in original loan (advantage TTNP)

Disadvantage Shareholders:
• TTNP may have to raise equity if they don't get a cash infusion by May = more dilution
• TTNP has mortgaged their intellectual property for 3 mil to Horizon