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Post by peppy on Apr 19, 2017 8:22:33 GMT -5
Did they sell already? Says some guy named James Flynn now owns 5.17% stake in MNKD. Oh...that's Deerfield. lucky guy
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Post by boytroy88 on Apr 19, 2017 8:27:47 GMT -5
You think they will sit on it till the SHM?
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Post by Cowgirl on Apr 19, 2017 8:30:02 GMT -5
The market cap of this co. is only modestly above $100,000,000. Think of the billions they've spent trying to get to under 200 new scripts a week. It's stunning. BTW...Deerfield would have to file when they sell shares as they are a greater then 5% shareholder. So, well know if they are selling. Also, it does appear modestly positive that they are taking an equity stake vs. debt at this point but heck - it's a bet they can make having made lots of money off mannkind and deep pockets.
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Post by hammer on Apr 19, 2017 8:30:44 GMT -5
Deerfield is not new to this game. As the largest source of debt financing to MannkindCorp the could have been the recipients of the whole works, including all intellectual property. They have accepted shares in the past for relief of outstanding debt so this is not new. Al man as well did this several times prior to SNY deal. I take this as generally bullish that Deerfield perhaps expects larger return as shareholder. Intellectual property rights are probably worth a several hundred million alone. so they expect greater return or are at least hedging their bet for greater return.
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Post by compound26 on Apr 19, 2017 8:32:22 GMT -5
Looks like a dilution for me. Deerfield is leaving ship as they will either sell it directly or will lend them out for shorts. Share price will go even more south. Sorry to say, but this looks like my biggest bet I ever did blows right into my face. Would like to see MNKD survive somehow but I assume that they will firesell Afrezza to one of the major players who will store that product where no one can find it and we get nothing in the end. Hopefully they will hang on for a big pay day hopefully they know that shortly the company will be sold. Speculation on my part. But the company needs to be owned by a larger entity who will have the capital to monetize the product properly. Deerfield knows this. It's not their first rodeo. Yes, agree. We will need another $200-500 million to run the clinical trials and do the ads to make Afrezza a blockbuster.
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Post by anderson on Apr 19, 2017 8:51:31 GMT -5
So is Deerfield may get more equity through exchanges and that is the reason for the golden parachutes?
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Post by hellodolly on Apr 19, 2017 8:54:53 GMT -5
In my opinion, this looks very much like a debt settlement agreement that allows MNKD to extend their liquidity, gives Deerfield more shares and greater ownership of MNKD. Not sure why a firm would exchange debt for shares and ownership, to sink their stake and look at the prospects of losses on the books. At some point in time, Deerfield will want to cash in on the pay day that is a the end of the tunnel rather than see the doors locked and shut. JMHO
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Post by wmdhunt on Apr 19, 2017 9:23:47 GMT -5
Seems that if you own most of the stock at some point, you own the company and the patents and all the assets, etc. Deerfield has a strategy here and I think that when and if they sell, it will be for a tidy sum.
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Post by cjm18 on Apr 19, 2017 9:27:25 GMT -5
Shares sold to Deerfield for 1.15. We are at 1.15. Praying this is a bottom.
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Post by Cowgirl on Apr 19, 2017 9:28:57 GMT -5
Deerfield is smart. Mannkind was arrogant and dumb. (Here we are going through hoops trying to fund and finance at what could be considered mannkind weakest point-market acceptance is proving out to be poor and out of money). There may be some deal of some sort to come as mannkind can't fund pediatrics, long term study, operations etc. on a a few hundred thousand of revenue from the product. I suspect shortly we are going to hear about reps walking. Mannkind's marketing team has been good at taking group photos with lots of smiles with cocktails in hand but at some point they'll need to realize selling 3 prescriptions a week is embarrassing.
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Post by cjm18 on Apr 19, 2017 9:30:37 GMT -5
These would be newly issued shares so they would reduce the amount available for issuance. I did the math a week or two ago and concluded that between issued and outstanding shares, plus shares reserved for issuance against various obligations (warrants, employee purchase, etc.) the company had about 30 million shares that it could issue. This issue is about 5 million shares, so that leaves 25 million to go. On a net basis, this is positive. The near term hit to cash is reduced a bit ($4 million in cash & $1 million in shares versus the $5 million due in May), and the $15 million due in July is now a $5 million conversion to shares with presumably the remaining $10 million still due in cash. So the expected hit to cash of $20 million in the coming months is now $14 million. As for Deerfield, these are not the kind of guys to sit on shares, but the discount could have been a lot bigger. All things considered, these are decent terms. Is 20m of debt not settled and can kicked down the road for 2 months?
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Post by mnkdfann on Apr 19, 2017 9:34:04 GMT -5
I suspect shortly we are going to hear about reps walking. Only reps?
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Post by cjm18 on Apr 19, 2017 9:41:26 GMT -5
I suspect shortly we are going to hear about reps walking. Only reps? Too soon. Mike said it takes 4-6 months for rep to get going. Their salary is competitive. Goon alerts on StockTwits bought shares for swing trade at 1.14. Deerfield wants mannkind to succeed. They weren't going to buy shares for closer to a buck because share price would Drop more. And the dollar threshold is significant as we know. Ok wishful thinking.
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Post by peppy on Apr 19, 2017 9:44:03 GMT -5
These would be newly issued shares so they would reduce the amount available for issuance. I did the math a week or two ago and concluded that between issued and outstanding shares, plus shares reserved for issuance against various obligations (warrants, employee purchase, etc.) the company had about 30 million shares that it could issue. This issue is about 5 million shares, so that leaves 25 million to go. On a net basis, this is positive. The near term hit to cash is reduced a bit ($4 million in cash & $1 million in shares versus the $5 million due in May), and the $15 million due in July is now a $5 million conversion to shares with presumably the remaining $10 million still due in cash. So the expected hit to cash of $20 million in the coming months is now $14 million. As for Deerfield, these are not the kind of guys to sit on shares, but the discount could have been a lot bigger. All things considered, these are decent terms. Is 20m of debt not settled and can kicked down the road for 2 months? • $55.0 million principal amount of 2019 notes bearing interest at 9.75% per annum, $15.0 million of which is due and payable in July 2017, $15.0 million of which is due and payable in July 2018 and $25.0 million of which is due and payable in July and December 2019; To July of 2018?
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Post by sportsrancho on Apr 19, 2017 9:48:59 GMT -5
Shares sold to Deerfield for 1.15. We are at 1.15. Praying this is a bottom. I bought shares at $1.16.
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