FWIW, I'm not so sure it's a "positive", but hopefully it will all end up not mattering at all.
It looks to me that Horizon Finance got spooked about Braeburn's firing the sales force/returning rights to probuphine to Titan. There is a provision in the loan agreement that allows Horizon to declare the loan in default if there is a "material adverse change" to Titan's business. Horizon probably threatened to declare a default if they didn't get some of their money back.
I believe Titan only borrowed $7 million, so if they pay 4 back they will only owe 3. So, this reduces debt, but also reduces Titan's cash runway. This is mitigated somewhat by the $2.4 million that should be coming in from Molteni on the EU deal this month.
The $5 million equity raise equals the maximum amount Titan could raise at the current stock price without requiring shareholder approval under Nasdaq rules.
They have a lot to get done by May 14. Getting the return of rights for probuphine shouldn't be difficult in theory, but Derkacz is not too smart and a real #%&@ apparently (remember him not even mentioning probuphine at the opioid commission meeting). In terms of partners, Alkermes would be nice, as they already have a lot of experience successfully selling a $1,000 a month drug for addiction (their connection to prisons could be a big plus for implants). Yes, they bad mouthed buprenorphine for a long, long time, but they have changed their tune due to the bad publicity. So if they aren't going to bad mouth bupe, they might as well make some money off it.
I'm glad Canaccord Genuity is on board to push things along. They will take a big commission, but leaving this to the "what me worry" gang is a recipe for disaster.
