Penny Stock Watch: Titan Pharmaceuticals (TTNP) Merger? Reverse Stock Split Coming?
March 11, 2020
“Titan Pharmaceuticals, Inc. (NASDAQ: TTNP) today announced it has entered into a securities purchase agreement with certain accredited institutional investors to purchase approximately $2.2 million of its common stock… The combined purchase price for one share of common stock and each warrant will be $0.25.
…The warrants will be exercisable commencing on the later of (i) six months from the date of issuance or (ii) the date that Titan’s stockholders approve a reverse stock split in an amount sufficient to permit the exercise in full of all of the warrants, will expire on the five year and six month anniversary of the issuance date and will have an exercise price of $0.25 per share…”
If you trade penny stocks or if you’re a day trader there are two major things you should always look for in my opinion; reverse stock splits and mergers. When penny stocks enter mergers it’s most likely not from a position of power. Every merger I’ve seen has not been in favor of common share holders. Also some companies don’t announce mergers/splits until after the fact. That means you’re trapped and bound to lose money.
Unless you can get this stock at or under .25 cents I think this stock should be avoided. My opinion may change if they announce the date they reverse stock split but until then buying this stock is like playing with fire. You’re bound to get burned.