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Post by jonny80s on Jun 7, 2018 11:23:00 GMT -5
Is it general consensus that Deerfield will be accepting shares in lieu of payment next month?
With this cycle of news coming through, if it continues, will there be something big announced before/during/after ADA?
It's either:
-major dilution: which I don't believe will happen because of October's warrants
-minor dilution: Deerfield accepts shares
-something big: partnership with upfront money
-combination of the above
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Post by traderdennis on Jun 7, 2018 12:45:08 GMT -5
Is it general consensus that Deerfield will be accepting shares in lieu of payment next month? With this cycle of news coming through, if it continues, will there be something big announced before/during/after ADA? It's either: -major dilution: which I don't believe will happen because of October's warrants -minor dilution: Deerfield accepts shares -something big: partnership with upfront money -combination of the above Let me comment on the October warrants. Don't count on any conversion unless the stock price is above $3.50 and even then those holding the warrants may choose to short and then cover at the end of the warrant period in April. If the price is in the 2-3.50 range, then those holding the warrants are likely to sell short calls and cover with the warrants on Jan / March option expiration Friday. So the question is assuming the price of the stock is above $2.38 in April 2019, how does MNKD finance their cash burn and payments until then. I expect to see possibly a run up going into ADA, and a very similar dilution event to October 2017. I think Mike has been winking at Deerfield and Sabby management. |
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Post by boca1girl on Jun 11, 2018 7:06:34 GMT -5
Is it general consensus that Deerfield will be accepting shares in lieu of payment next month? With this cycle of news coming through, if it continues, will there be something big announced before/during/after ADA? It's either: -major dilution: which I don't believe will happen because of October's warrants -minor dilution: Deerfield accepts shares -something big: partnership with upfront money -combination of the above Correct on 2nd point with Deerfield. Maybe we get another term sheet with a small amount of upfront money before we close out June. |
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Post by mnkdfann on Jun 11, 2018 7:45:26 GMT -5
Is it general consensus that Deerfield will be accepting shares in lieu of payment next month? With this cycle of news coming through, if it continues, will there be something big announced before/during/after ADA? It's either: -major dilution: which I don't believe will happen because of October's warrants -minor dilution: Deerfield accepts shares -something big: partnership with upfront money -combination of the above IMO, sort of sobering they diluted BEFORE the ADA. Do they expect no share price bump on ADA meeting news? |
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Post by gareaudan on Jun 11, 2018 8:15:29 GMT -5
Is it general consensus that Deerfield will be accepting shares in lieu of payment next month? With this cycle of news coming through, if it continues, will there be something big announced before/during/after ADA? It's either: -major dilution: which I don't believe will happen because of October's warrants -minor dilution: Deerfield accepts shares -something big: partnership with upfront money -combination of the above IMO, sort of sobering they diluted BEFORE the ADA. Do they expect no share price bump on ADA meeting news? yes exactly... Even look like they wanted to do it before the ADA because they expect the price to go down... i Dont understand, why do it at all, so far in advance? |
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Post by rayskum on Jun 11, 2018 8:17:55 GMT -5
My guess is that they are playing nice with a creditor. That is just a guess
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Post by gareaudan on Jun 11, 2018 8:21:34 GMT -5
My guess is that they are playing nice with a creditor. That is just a guess ah! Maybe...but for what? Have better terms on the next deals? |
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Post by traderdennis on Jun 11, 2018 8:44:49 GMT -5
My guess is that they are playing nice with a creditor. That is just a guess ah! Maybe...but for what? Have better terms on the next deals? Highly doubt Deerfield would ever enter into a new agreement with mnkd in the future. |
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Post by boca1girl on Jun 11, 2018 8:47:09 GMT -5
IMO, sort of sobering they diluted BEFORE the ADA. Do they expect no share price bump on ADA meeting news? yes exactly... Even look like they wanted to do it before the ADA because they expect the price to go down... i Dont understand, why do it at all, so far in advance? $5M was due to Deerfield in June (18th?) and now only $2M in cash due this month. The 2019 debt conversion was probably required by Deerfield. Why, I have no clue? |
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Post by Deleted on Jun 11, 2018 8:53:40 GMT -5
yes exactly... Even look like they wanted to do it before the ADA because they expect the price to go down... i Dont understand, why do it at all, so far in advance? $5M was due to Deerfield in June (18th?) and now only $2M in cash due this month. The 2019 debt conversion was probably required by Deerfield. Why, I have no clue? Why not just pay them the $5m and save us from this dilution? |
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Post by boca1girl on Jun 11, 2018 9:00:29 GMT -5
$5M was due to Deerfield in June (18th?) and now only $2M in cash due this month. The 2019 debt conversion was probably required by Deerfield. Why, I have no clue? Why not just pay them the $5m and save us from this dilution? Probably because we couldn’t pay the $5M and still make the $25M minimum cash balance at quarter end. This deal also lowers the minimum cash balance from $25M to $20M through the end of 2018. Currently we are walking a very fine line with our cash flow. It is not a good place to be in, for sure. |
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Post by xanet on Jun 11, 2018 11:09:52 GMT -5
ah! Maybe...but for what? Have better terms on the next deals? Highly doubt Deerfield would ever enter into a new agreement with mnkd in the future. Why? IMO, the partnership with Deerfield has worked out just fine for both parties. MNKD needed $, Deerfield provided that. There has been give and take on both sides like one might expect with a private equity arrangement. I see no evidence that Deerfield has soured on MNKD. |
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