Titan Is Virtually Fully Financed & Going Higher
I have been reading the board over the weekend and thought I would give my perspective to which feedback would be welcome.
There is minimal concerns regarding dilution. For those who don’t feel the same, go ahead and sell on Monday .
We all know the company needed money and a few on this board have spoken to the CFO of Titan directly who confirmed they require about $20 to $25 million to complete the product and get it to commercialization. Therefore who cares about issuing 7.3 million shares in the long run. The dilution is not much when you consider the money in the bank as well as the value for their technology.
This raise gives the company the time needed to complete further milestones which continue to create value for the company which ultimately means a higher share price.
If the share price continues to rise, then warrants will continue to be exercised. I have heard through good sources that many of the series C warrants for $1.25 got exercised when Titan was trading at its recent $1.75 levels just prior to last week’s financing. Warrant holders simply wanted to lock in their profit. Let’s look at the Series C warrants alone. There are about 6 million of these warrant outstanding which when fully exercised alone will bring in $7.5 million. Think about that, yes there is about 4 years left in their life (but many of these warrant holders will exercise these warrants early) but with the proceeds from the recent financing of $10 million plus the proceeds from the C warrants for another $7.5 million Titan will have $17.5 million. Keep in mind that I have still not even counted the other series of warrants.
If Titans share price goes back to where it was before the recent financing and actually goes through $2 which in my strong opinion is in the bag once the financing is closed (February 19th as per Titan’s news release) then more warrants will continue to get exercised bringing in more money.
Summary, Titan at this stage appears to be virtually fully financed once you take into consideration the warrants. The price action on Friday when Titan opened for trading was also a huge sign. The fact that it closed a penny below its recent financing of $1.40 on millions of shares shows the strength of Titan and that it is going higher.
Pointofreturn, thanks for the heads up on Theralase. I inquired and also heard the same people involved.
