New 8-K For Dec 26

[akemp3000]

On December 26, 2018, MannKind Corporation (the “Company”) issued a warrant (the “Warrant”) to purchase 11,750,000 shares of the Company’s common stock (the “Warrant Shares”) to CVI Investments, Inc. (“CVI”) in connection with an underwritten public offering of the Company’s common stock and warrants to purchase shares of its common stock, which was made pursuant to the Company’s registration statement on Form S-3 (Registration Statement No. 333-210792), previously filed with the Securities and Exchange Commission (“SEC”) and declared effective by the SEC on April 27, 2016, and a prospectus supplement thereunder.

On December 23, 2019, the Company and CVI agreed to amend the Warrant (the “Warrant Amendment”) to provide that (i) commencing immediately following the Company’s filing of this Current Report on Form 8-K with the SEC, and ending at 9:30 a.m. (New York City time) on December 23, 2019, the exercise price per share for 4,500,000 Warrant Shares will be equal to $1.311 but only with respect to a cash exercise under Section 2(a) of the Warrant and (ii) if and only if CVI purchases at least 4,500,000 Warrant Shares pursuant to a cash exercise of the Warrant under Section 2(a) of the Warrant prior to 5:00 p.m. (New York City time) on December 26, 2019, the termination date of the Warrant will be extended to June 26, 2020.

[akemp3000]

Seems to be a simple way to raise a little more cash while extending the balance of these particular warrants to June...not that significant. Would be glad to hear other perspectives.

[sportsrancho]

OMG is mine:-(

[barnstormer]

So CVI gets to excersise at $1.30 ( 8 cents below Fri close)? What happend to the $1.60 strike? And extended the rest of the warrants to June? I was hoping I was near the end of hearing how the share price would start climbing after the warrants expired. Proceeds are $5M? So Mike let them excersise at $1.35M below the strike . Way to take care of shareholder value Mike you just gave CVI the ability to short MNKD for another 6 months with a safety valve.

[stockwhisperer]

So, does this mean that 4,500,000 can be prchased by CVI immediately (or they can wait until ,June 30, 2020) if preferred) for $1.311. What is that going to do to the share price? What about the rest of the shares - they go back to MNKD on Dec. 26 if not exercised at $1.60? Why did they do this - what am I not understanding here?

[mnholdem]

CVI must purchase the 4.5M shares of common stock by 9:30am EST today for the remainder of their $1.60 warrant to be extended to a June 2020 termination date....at which date there is no guarantee that this management team may make another sweetheart deal.

[akemp3000]

While I don't see this as being that significant, it does raise the obvious question as to why they did this for a little extra cash? Could be a thousand different reasons such as equipment. Wish they would divulge but it won't affect my coffee this a.m.

[mnholdem]

I really do not understand this CEO and CFO team.  Typically, a company issuing warrants will raise its image because it will reflect the confidence of investor(s) in the company, who agree to purchase shares of the company at a price that is higher than the current market price. It has baffled me why MannKind CEO Michael Castagna offers these sweetheart deals, issuing warrants that are lower that the market share price.  

In my opinion, this amendment is NOT in the interests of shareholders and the CEO's action will depress the market price for MNKD shares and erode shareholder value and may even constitute a breach of fiduciary duty to shareholders. 

[letitride]

Well this wipes out anything I could have expected.

[sportsrancho]

ST.... $MNKD So, am I misunderstanding this or did MNKD just give the shorts another window by telling the Street that the stock is only worth $1.31, possibly for anther 6 months.

[hellodolly]

This was not negotiated just Friday. It has been in the works and presumably when the share price was at 1.31. They are not telegraphing anything so people stop making BS up. You can post that on ST!

[liane]

I was so looking forward to the shorting against the warrants to be done

[letitride]

Its telling me they needed 5 mill now for what reason I have no idea.

[cretin11]

Dec 23, 2019 7:43:47 GMT -5 hellodolly said:

This was not negotiated just Friday. It has been in the works and presumably when the share price was at 1.31. They are not telegraphing anything so people stop making BS up. You can post that on ST!

Then how is this a good thing for us?

[agedhippie]

Dec 23, 2019 7:19:51 GMT -5 stockwhisperer said:

So, does this mean that 4,500,000 can be prchased by CVI immediately (or they can wait until ,June 30, 2020) if preferred) for $1.311. What is that going to do to the share price? What about the rest of the shares - they go back to MNKD on Dec. 26 if not exercised at $1.60? Why did they do this - what am I not understanding here?

I would need to read the agreement, but based on the excerpt above it's an end of year special

The warrants, all 11M, get extended until June 26th *if* CVI exercise 4.5M of them immediately (the Dec 26 deadline) at $1.311 rather than the issued $1.60 exercise price. It's not clear if the price of those remaining warrants is reduced to $1.311 or remains at $1.60 - I would need to read the agreement but I suspect it will remain at $1.60.

What does this mean? My read is that;
 - they are hedging their MidCap position. They just paid CVI $310k + the value of the warrants to agree to extend the warrants until the end of June. If things go off the rails with MidCap this will provide an immediate chance to offload the remaining 6.5M warrants for cash,
 - and it's corollary, keeping CVI sweet so they can go back to that particular well if necessary. If things remain good with MidCap then the warrants will probably never get exercised.,
 - they don't expect the price to be over $1.60 before tranche 2 or they would have used the ATM instead,
 - Mike is going to be asking for a lot more shares in the not to distant future
 - the shorts feel a lot safer.