|
Post by cjm18 on Apr 19, 2017 9:49:53 GMT -5
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? I didn't mean debt payments were kicked down the road. Cash runway.
|
|
|
Post by factspls88 on Apr 19, 2017 10:03:18 GMT -5
It's always something. Sigh.
|
|
|
Post by Cowgirl on Apr 19, 2017 10:05:24 GMT -5
Mike, (Matt, Al, Hakkan etc.) have said a lot of things that haven't materialized... Agree Deerfield is not dumb and looking for upside and they have been around long enough to also watch Mannkind stumble so much so to take a larger equity stake here is sort of good news. Certainly no assurances though.
|
|
|
Post by boytroy88 on Apr 19, 2017 10:09:30 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. I wish I had the cajones and the powder to buy more....😔
|
|
|
Post by kingedxxxxx on Apr 19, 2017 10:14:57 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. Sucka Sorry, had to do it. The past has shown that any additional investment in MannKind stock has been a case of putting good money after bad. At best, you have to hope for a bounce here. There is NO other reason to buy at this point other than the hope of a bounce. We have a case of additional dilution at $1.15. Those notes likely were NOT valued at face, yet they were not exchanged at a discount to face. Instead, Deerfield received shares above face based on last closing share price (or, better yet, MannKind avg. share price over past 30 trading days.) What should everyone have learned from this announcement? 1. MannKind cannot pay back this debt in cash. 2. MannKind still has more debt to resolve. 3. MannKind is suffering liquidity issues. 4. MannKind had basically no negotiating power against Deerfield to convert the debt at a discount to face and, instead, had to do a deal at a discount to equity as noted above. 5. MannKind share price is now hovering near that $1 critical level. How soon before shorts take it back below? 6. Deerfield did not take shares with the belief that MannKind is undervalued. It was rather a way to keep the doors open without forcing Bankruptcy or some other extreme measure to deal with debt. Deefield is better off at this point to let things ride. Why? That's another story to unfold and I can only speculate on that one. In my opinion, though, Deerfield will end up with more of the company by keeping MannKind out of BK for now. The ONLY thing that changes everything is a real increase in sales. Based on everything we know, that is becoming less likely by the week and is now incredibly unlikely. MannKind is out of money and out of options. Not sure why anyone would "buy" the company here. Deerfield likely has their own plan and it is not aligned with retail shareholders.
|
|
|
Post by derek2 on Apr 19, 2017 10:24:20 GMT -5
I bought shares at $1.16. Sucka Sorry, had to do it. The past has shown that any additional investment in MannKind stock has been a case of putting good money after bad. At best, you have to hope for a bounce here. There is NO other reason to buy at this point other than the hope of a bounce. We have a case of additional dilution at $1.15. Those notes likely were NOT valued at face, yet they were not exchanged at a discount to face. Instead, Deerfield received shares above face based on last closing share price (or, better yet, MannKind avg. share price over past 30 trading days.) What should everyone have learned from this announcement? 1. MannKind cannot pay back this debt in cash. 2. MannKind still has more debt to resolve. 3. MannKind is suffering liquidity issues. 4. MannKind had basically no negotiating power against Deerfield to convert the debt at a discount to face and, instead, had to do a deal at a discount to equity as noted above.5. MannKind share price is now hovering near that $1 critical level. How soon before shorts take it back below? 6. Deerfield did not take shares with the belief that MannKind is undervalued. It was rather a way to keep the doors open without forcing Bankruptcy or some other extreme measure to deal with debt. Deefield is better off at this point to let things ride. Why? That's another story to unfold and I can only speculate on that one. In my opinion, though, Deerfield will end up with more of the company by keeping MannKind out of BK for now. The ONLY thing that changes everything is a real increase in sales. Based on everything we know, that is becoming less likely by the week and is now incredibly unlikely. MannKind is out of money and out of options. Not sure why anyone would "buy" the company here. Deerfield likely has their own plan and it is not aligned with retail shareholders. #4 is a good observation. Thinking beyond the surface. Also (and this is rank speculation). Similar to how Deerfield shorted in order to lock in profits on their original discounted conversion (that was proven), they may be doing this now, since they could have negotiated the $1.15 price some time ago. (this is unproven but would make sense) Means they make a profit, no risk, and would be willing to do the conversion.
|
|
|
Post by zuegirdor on Apr 19, 2017 11:06:05 GMT -5
As the father of a type 1 son who uses Afrezza(and holder of small handful of this co.), if I had a million bucks, instead of buying stock at 1.15 I would buy a lifetime of Rx for my son right now just to be sure he never ran out in case of BK (those of us who have over-thought all of this know that Afrezza does not go bad-especiially if stored properly). That's roughly 720 refills since we replenish monthly. I am not sure what would help the stock price more, someone buying into this news at a million shares, or someone bumping the weekly scripts by 1000% ? You can vote on this poll by DMing me on where to send the cash so that I can buy the lifetime supply and send scripts and maybe the stock price through the roof.
|
|
|
Post by silentknight on Apr 19, 2017 11:23:27 GMT -5
I'll give MNKD points for creativity in dealing with their debt, but let's not sugar coat this. It's shareholder dilution. 5,217,391 worth of dilution to be exact.
It lends credence to the severity of MNKD's cash crunch and their inability to pay their debts and maintain liquidity simultaneously. That's not a position of strength. It's desperation.
Also, let us not forget the recent golden parachutes in place for execs if a change of control occurs. This is likely the first step with Deerfield assuming control of the company (one can only hope) to salvage what little value is left in MNKD. I expect we'll see executives depart in short order if Deerfield accumulates more shares to cash in on their riches for driving the company into the ground.
All this could be avoided if MNKD was effective at selling their drug. What a shame.
|
|
|
Post by saxcmann on Apr 19, 2017 11:39:27 GMT -5
• $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? I didn't mean debt payments were kicked down the road. Cash runway. 2 more months gets us to the "ultra" label decision by fda. Do things change if mnkd has only ultra label insulin?? Would someone be interesting in buying mnkd? Would docs prescribe more?
|
|
|
Post by slugworth008 on Apr 19, 2017 11:40:19 GMT -5
Very nice sports
|
|
|
Post by babaoriley on Apr 19, 2017 11:47:00 GMT -5
It probably means Deerfield will dump the shares ASAP. liane, I'm shocked, you've become such a skeptic!!
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Apr 19, 2017 11:54:15 GMT -5
And the market has known about this for some time which is why the stock has been tanking for two weeks.
|
|
|
Post by liane on Apr 19, 2017 11:59:54 GMT -5
It probably means Deerfield will dump the shares ASAP. liane, I'm shocked, you've become such a skeptic!! Past history is no indication of future performance!
|
|
|
Post by babaoriley on Apr 19, 2017 12:01:49 GMT -5
To me, pretty much a non-event. What's Deerfield gonna do, watch MNKD go BK and get next to nothing for their notes, or convert their notes to stock and maybe get a bigger payday than interest on those Notes? Not sure if those notes were convertible, by the way. The conversion price was fine, but, again, pretty much irrelevant under our current circumstances. I gotta think Deerfield is going to sell many of those shares, otherwise they are afraid they will get nothing (and end up in the same boat as us, and NO ONE wants to be in THAT boat).
So, it's a good deal for Deerfield, cuz now they can get some cash for their note, where they otherwise would get a lot less cash, possibly nothing (well, they may want to take over the business and see if they can sell Afrezza). And it's good for us, too, although I'm not sure at all that Deerfield would have exercised their remedies if we hadn't paid. They probably would have extended the maturity. But it is a way of getting poor, poor Deerfield a little more cash for their fooling mistake of lending to us!
|
|
|
Post by careful2invest on Apr 19, 2017 12:04:28 GMT -5
liane, I'm shocked, you've become such a skeptic!! Past history is no indication of future performance! Liane, are you applying "past history is no indication of future performance" to you, or to Deerfield?
|
|