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Previous: GABELLI GLOBAL SERIES FUNDS INC, N-30B-2, 1997-06-10 |
Next: ARM FINANCIAL GROUP INC, S-1/A, 1997-06-10 |
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act 1934
Date of Report: June 4, 1997
Titan Pharmaceuticals, Inc.
(Exact name of registrant as specified in charter)
Delaware
(State or other jurisdiction of incorporation)
0-27436 94-3171940
(Commission File Number) (IRS Employer Identification No.)
400 Oyster Point Blvd., Suite 505, South San Francisco, California 94080
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 244-4990
<PAGE>
Item 5. Other Events
On June 4, 1997, Ingenex, Inc., a majority-owned subsidiary of the
Registrant, completed the sale of its GSX System, a research technology, and
certain fixed assets to Pharmaceutical Product Development, Inc. for $8,722,500
in cash and the assumption of certain lease liabilities. The following sets
forth the condensed consolidated balance sheet of the Registrant at March 31,
1997 giving pro forma effect to the consummation of the sale:
<TABLE>
<CAPTION>
Pro Forma
At March 31, 1997 Adjustments(1) at March 31, 1997
----------------- -------------- -----------------
(unaudited) (unaudited)
<S> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 3,365,609 7,634,775 $ 11,000,384
Short-term investments 4,500,000 4,500,000
Prepaid expenses and other current assets 213,755 213,755
Receivable from Ansan Pharmaceuticals, Inc. 136,915 136,915
------------- ------------
Total current assets 8,216,279 15,851,054
Furniture and equipment, net 734,982 (422,195) 312,787
Deferred financing costs 84,787 (84,787) --
Note receivable from Ansan Pharmaceuticals, Inc. 1,000,000 1,000,000
Investment in Ansan Pharmaceuticals, Inc. 310,815 310,815
Other assets 280,092 (125,344) 154,748
------------- ------------
$ 10,626,955 $ 17,629,404
============= ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 706,746 706,746
License fee payable 2,000,000 2,000,000
Accrued legal fees 516,946 100,000 616,946
Accrued sponsored research 92,811 92,811
Other accrued liabilities 432,017 582,651 1,014,668
Current portion of capital lease obligations 276,143 (276,143) --
Current portion of technology financing - Ingenex, Inc. 591,652 (591,652) --
------------- ------------
Total current liabilities 4,616,315 4,431,171
Noncurrent portion of capital lease obligation 408,501 (408,501) --
Noncurrent portion of technology financing - Ingenex, Inc. 562,600 (562,600) --
------------- ------------
Total liabilities 5,587,416 4,431,171
Commitments
Minority interest - Series B preferred stock of Ingenex, Inc. 1,241,032 1,241,032
Guaranteed security value 5,500,000 5,500,000
Stockholders' equity (net capital deficiency):
Common stock, at amounts paid in 49,622,782 49,622,782
Additional paid-in capital 6,521,353 6,521,353
Deferred compensation (587,160) (587,160)
Deficit accumulated during the development stage (57,258,468) 8,158,694 (49,099,774)
------------- ------------
Total stockholders' equity (net capital deficiency) (1,701,493) 6,457,201
------------- ------------
$ 10,626,955 $ 17,629,404
============= ============
</TABLE>
- ----------
(1) Reflects the use of a portion of the proceeds to repay all outstanding
amounts owed under a technology financing arrangement. Additionally, the Company
has provided for certain accrued liabilities aggregating $683,000 in connection
with the sale, including severance payments, legal fees and other items.
-2-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TITAN PHARMACEUTICALS, INC.
By: /s/ Louis R. Bucalo
----------------------------
Louis R. Bucalo, M.D.
President and Chief Executive Officer
Dated: June 9, 1997
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