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Post by dreamboatcruise on May 16, 2017 22:18:02 GMT -5
Does someone know if a rights offering indeed happens, do shareholders who have loaned shares get to participate in the offering? I'm assuming not.
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Post by sportsrancho on May 16, 2017 22:37:39 GMT -5
There is no offering. If they did one you would have to have your money with them. They are most likely shorting all their shares so I guess it's anyone's guess?
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Post by dreamboatcruise on May 16, 2017 22:44:15 GMT -5
There is no offering. If they did one you would have to have your money with them. They are most likely shorting all their shares so I guess it's anyone's guess? That is not what is generally meant by a rights offering. A normal rights offering as was done for EYES is the company offering rights that go to all shareholders. Has nothing to do with who holds your shares. An example would be if MNKD offered to sell one share for each share you already own at a price of $1 per share. If all shareholders fully participated then everyone would own the same percentage of the company as they previously did, but the company would have about $100M extra in working capital. You may be correct that no rights offering will happen. I'm very skeptical that is what this yellow card stuff is about, but if it is I'm curious how loaning out shares affects a rights offering. Ever since seeing the EYES rights offering I've been suggesting that may be the best move for MNKD at this point, assuming they can get the Mann entities on board (which may well not be possible). |
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Post by akemp3000 on May 16, 2017 22:52:15 GMT -5
If this Aegis move was accepted by MNKD, another question needs to be asked at the meeting..."If Aegis gets control of shares through this solicitation, can those shares then be loaned to short by Aegis?" It would certainly appear to be the case but if so, management should not be comfortable with this question.
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Post by sportsrancho on May 16, 2017 23:03:23 GMT -5
Someone just called me and added this:
Aegis rep said that he wanted to approach MNKD about issuing discounted shares at a rate to equal amount held at a 25-40% discount. Of course in order to pull it off Aegis would have to be holding my shares to give the leverage.
He felt like it was a sales pitch...
So IDK Dream, you know a lot more about it than I do.
This is what I meant when I said in the other thread that they aren't talking about it the way people on here?
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Post by kuka on May 16, 2017 23:57:37 GMT -5
I wonder if AEGIS are really shorting this stock and are getting nervous that they cannot cover ..the whole post card this is strange...
never heard of that before
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Post by mytakeonit on May 17, 2017 0:07:49 GMT -5
I feel that AEGIS is just trying to gain control of enough shares to be able to maneuver Mannkind to go in a direction that they want. Whatever direction that is ... is normally NOT what Mannkind or we would normally want. I wouldn't release control of your shares ... and won't.
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Post by ilovekauai on May 17, 2017 0:11:15 GMT -5
My little card came in the mail today. I have absolutely no desire to do anything with this company & have already tossed the card in the garbage where it belongs IMO. Cheers.
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Post by mytakeonit on May 17, 2017 0:21:36 GMT -5
My little card came in the mail today. I have absolutely no desire to do anything with this company & have already tossed the card in the garbage where it belongs IMO. Cheers. What? I didn't get one. Awww ... I feel so neglected. Hey Kauai ... I rented Waikiki Beach for the ASM night. Since we are so far away ... we need to do our own thing. Too bad it wasn't on Spam Jam night. We could have had our own Afrezza booth. Eat a spam musubi and down a tequila sunrise then inhale Afrezza. Ahhh ... life is good. Ha! |
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Post by centralcoastinvestor on May 17, 2017 0:48:34 GMT -5
Got my yellow card today. I wouldn't touch this with a 10 foot pole. Into the trash it goes.
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Post by matt on May 17, 2017 6:29:17 GMT -5
Does someone know if a rights offering indeed happens, do shareholders who have loaned shares get to participate in the offering? I'm assuming not. Yes, just because you loaned shares does not mean that you no longer the beneficial owner. Any rights accrue to the beneficial owner, not the borrower. The borrower just gets to play the price swings when they borrow (minus the interest) but they have to make you whole for any dividends or distributions that occur during the borrow period. |
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Post by scoy on May 17, 2017 8:18:27 GMT -5
Does someone know if a rights offering indeed happens, do shareholders who have loaned shares get to participate in the offering? I'm assuming not. Yes, just because you loaned shares does not mean that you no longer the beneficial owner. Any rights accrue to the beneficial owner, not the borrower. The borrower just gets to play the price swings when they borrow (minus the interest) but they have to make you whole for any dividends or distributions that occur during the borrow period. I don't disagree with you lightly but here's what I signed with my broker. It says I agree: Section 11: Loan Consent. You agree that property held in your Margin Account, now or in the future, may be borrowed (either separately or together with the property of others) by us (acting as principal) or by others. You agree that Schwab may receive and retain certain benefi ts (including, but not limited to, interest on collateral posted for such loans) to which you will not be entitled. You acknowledge that, in certain circumstances, such borrowings could limit your ability to exercise voting rights or receive dividends, in whole or in part, with respect to the property lent. www.schwab.com/public/file/P-221811/COM31873-19-ST_REVISED.pdfOr wikipedia: en.wikipedia.org/wiki/Securities_lendingWhen a security is loaned, the title of the security transfers to the borrower. This means that the borrower has the advantages of holding the security, as they become the full legal and beneficial owner of it. If you buy stock from a short I believe that they borrow a real share and give it to you. |
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Post by dreamboatcruise on May 17, 2017 10:43:02 GMT -5
Does someone know if a rights offering indeed happens, do shareholders who have loaned shares get to participate in the offering? I'm assuming not. Yes, just because you loaned shares does not mean that you no longer the beneficial owner. Any rights accrue to the beneficial owner, not the borrower. The borrower just gets to play the price swings when they borrow (minus the interest) but they have to make you whole for any dividends or distributions that occur during the borrow period. I know when I loan shares I get paid dividends just as if I had not loaned the shares. I also know when I have shorted stocks I'm on the hook to pay any issued dividends. In the case of a discounted rights offering if the person that loans the shares AND the person that buys shares from those shorting both get rights to participate, does that mean that the entity borrowing and shorting is having to provide an equivalent transaction... i.e. buying full priced shares and selling them at the rights offering discount? If the rights offering also had warrants how would the borrower/shorter get warrants they could provide? A person buying shares when the counter party is a shorter certainly has full ownership rights because they do not even know when they are buying from a short. |
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Post by scoy on May 17, 2017 10:46:36 GMT -5
Yes, just because you loaned shares does not mean that you no longer the beneficial owner. Any rights accrue to the beneficial owner, not the borrower. The borrower just gets to play the price swings when they borrow (minus the interest) but they have to make you whole for any dividends or distributions that occur during the borrow period. I know when I loan shares I get paid dividends just as if I had not loaned the shares. I also know when I have shorted stocks I'm on the hook to pay any issued dividends. In the case of a discounted rights offering if the person that loans the shares AND the person that buys shares from those shorting both get rights to participate, does that mean that the entity borrowing and shorting is having to provide an equivalent transaction... i.e. buying full priced shares and selling them at the rights offering discount? If the rights offering also had warrants how would the borrower/shorter get warrants they could provide? A person buying shares when the counter party is a shorter certainly has full ownership rights because they do not even know when they are buying from a short. Exactly my point. When you lend your shares to a shorter, the shorter pays you your dividend. The company pays the person who bought the shares. Once you've lent your shares you're not entitled to anything from the company. |
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Post by jred on May 17, 2017 12:23:20 GMT -5
When shares are loaned out there is an open liability that is maintained between the accounts of the borrower and lender by the clearing/brokerage houses. This how the lender of shares receives dividend payments, not direct from company, but from borrowers account. In the same way, if the lender participates in a rights offering the borrowers account will be responsible for fulfiling the transaction on the final terms, including proration (if any). The borrower will receive the cash from the lender (the strike or offering price) and an increased short position will be created as shares are delivered to the lender.
I believe the lender, however, is not eligible for any oversubscription provision.
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