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 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:
Pro Forma At March 31, 1997 Adjustments(1) at March 31, 1997 ----------------- -------------- ----------------- (unaudited) (unaudited) 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 ============= ============
- ---------- (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- 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