Titan Pharmaceuticals (NASDAQ:TTNP) has entered into a venture loan and security agreement with Horizon Technology Finance (NASDAQ:HRZN), which provides Titan with up to $10-million of available borrowing capacity.
A first tranche of $7-million was funded on execution of the loan agreement. A second tranche of $3-million will be available to Titan, at its option, through March 31, 2018, subject to the satisfaction of certain revenue and product development milestones, and other borrowing conditions.
"We believe this transaction balances our capital needs and opportunity to grow the company, and our commitment to minimizing dilution for shareholders to the extent possible," Titan president and CEO, Sunil Bhonsle, said in a statement.
"We expect that our existing cash on hand, combined with the net proceeds from the first tranche of this loan, will be sufficient to fund planned operations into early 2019," he added.
Gerald Michaud, president of Horizon, said Titan’s long-term drug delivery platform, ProNeura, represents a new standard of chronic disease management, utilizing subdermal implants.
“We look forward to working with Titan as its lead product, Probuphine, advances in the marketplace and the company continues to develop a growing pipeline of new treatments for select therapeutic markets," he added.