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Post by slugworth008 on May 30, 2017 11:46:34 GMT -5
Sounds like standard language for announcing the termination of employment to me. Kent Kresa Chairman of the board in today's announcement praised Matt and said that he effectively prepared Mike to take over as his successor. This sounds to me as if this was planned from the first day Mike started with MNKD Steve Jobs to Tim Cook...
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Post by brotherm1 on May 30, 2017 11:49:50 GMT -5
Mike is 38 years old. He's still got the testosterone that's needed. And working with people is a whole different game than working with numbers. I myself transitioned 15 years ago away from managing people to managing numbers. Numbers are far less stressfull and I never want to go back to fully managing people. I saw this comimg many months ago. Matt's a good guy and got the ball rolling with Mike. And Mike is very good at making people conmections. He has vision and exudes the fortitude to make it happen.
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Post by mountain74 on May 30, 2017 11:50:37 GMT -5
I'm a little confused. I read the earnings transcript a few weeks back and it seemed pretty upbeat. Now the CEO resigning or being let go, whichever the case, seems to deserve a little explanation from the company.
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Post by promann on May 30, 2017 11:52:47 GMT -5
I'm a little confused. I read the earnings transcript a few weeks back and it seemed pretty upbeat. Now the CEO resigning or being let go, whichever the case, seems to deserve a little explanation from the company. We will get the same explanation when Haken stepped down... NONE,,!
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Post by rossomalley on May 30, 2017 12:02:24 GMT -5
Sounds like standard language for announcing the termination of employment to me. Kent Kresa Chairman of the board in today's announcement praised Matt and said that he effectively prepared Mike to take over as his successor. This sounds to me as if this was planned from the first day Mike started with MNKD It's certainly written so that you would infer that, but it doesn't actually say Matt was intentionally grooming Mike. It could also mean Mike learned by watching him. It would have been easier to parse if Matt was quoted saying what a great job he thinks Mike will do. As it is, it doesn't look like a voluntary retirement, it looks like what happened to Hakan.
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Post by matt on May 30, 2017 12:06:56 GMT -5
Let's just get this on record shall we? Matt, do you believe that Mannkind is going to announce bankruptcy in the near term (1-3 months?) In 1-3 months it is hard to say. In 1-2 months, the answer is almost certainly no. In 3 months, that changes to a maybe. The wild card is how things go over the next two months on their ability to pad the cash balance, however they manage to do it. A company cannot declare bankruptcy and hope to exit with a confirmed Chapter 11 plan unless they have enough cash on the balance sheet to see them through the pendency of the case. Once a company files they essentially become a cash business, having to prepay certain expenses, like utilities, and having to pay other vendors cash on delivery, plus there are extraordinary legal costs that didn't exist before. Declaring BK with no cash left is sure way to wind up in a Chapter 7 and an immediate liquidation; nobody wants that. The outside law firm is no doubt giving the board the same advice and if the cash gets too close to zero the board will have to file if they want a chance to reorganize. When exactly does that happen? If the latest cash burn figure is $7 million, and a Chap 11 case takes at least 4 months, then the company need a reserve of $28 million in operating cash plus $10 million for legal expenses, or a total of $38 million as a minimum cash balance at all times. The cash won't reach that minimum number until mid-August assuming the $10 million in debt due in July is swapped for shares and the entire Mann Group credit line is used. Any material increase in sales pushes the date further into the future. If the company does a successful rights offering (which will require shareholder approval to increase authorized shares) the date gets pushed further. If the authorized shares are increased, there can be a PIPE transaction in the market and the date gets pushed further. If there is a licensing deal with up-front cash, the date gets pushed further. A lot can happen in the next two months to boost cash and those events are hard to anticipate and even harder to quantify. Absent anything contributing in a significant way to the cash reserve, August 14 is a day to watch. A lot of law firms like to file BK on the same day they file a 10-Q since all the disclosures are up-to-date as of that filing and it lessens the initial paperwork for the case. I have seen several companies file the 10-Q followed immediately by an 8-K announcing the BK filing.
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Post by madog365 on May 30, 2017 12:23:41 GMT -5
Let's just get this on record shall we? Matt, do you believe that Mannkind is going to announce bankruptcy in the near term (1-3 months?) In 1-3 months it is hard to say. In 1-2 months, the answer is almost certainly no. In 3 months, that changes to a maybe. The wild card is how things go over the next two months on their ability to pad the cash balance, however they manage to do it. A company cannot declare bankruptcy and hope to exit with a confirmed Chapter 11 plan unless they have enough cash on the balance sheet to see them through the pendency of the case. Once a company files they essentially become a cash business, having to prepay certain expenses, like utilities, and having to pay other vendors cash on delivery, plus there are extraordinary legal costs that didn't exist before. Declaring BK with no cash left is sure way to wind up in a Chapter 7 and an immediate liquidation; nobody wants that. The outside law firm is no doubt giving the board the same advice and if the cash gets too close to zero the board will have to file if they want a chance to reorganize. When exactly does that happen? If the latest cash burn figure is $7 million, and a Chap 11 case takes at least 4 months, then the company need a reserve of $28 million in operating cash plus $10 million for legal expenses, or a total of $38 million as a minimum cash balance at all times. The cash won't reach that minimum number until mid-August assuming the $10 million in debt due in July is swapped for shares and the entire Mann Group credit line is used. Any material increase in sales pushes the date further into the future. If the company does a successful rights offering (which will require shareholder approval to increase authorized shares) the date gets pushed further. If the authorized shares are increased, there can be a PIPE transaction in the market and the date gets pushed further. If there is a licensing deal with up-front cash, the date gets pushed further. A lot can happen in the next two months to boost cash and those events are hard to anticipate and even harder to quantify. Absent anything contributing in a significant way to the cash reserve, August 14 is a day to watch. A lot of law firms like to file BK on the same day they file a 10-Q since all the disclosures are up-to-date as of that filing and it lessens the initial paperwork for the case. I have seen several companies file the 10-Q followed immediately by an 8-K announcing the BK filing. There you have it folks, straight from the most interesting man in the world who frequents our board here. He doesn't always predict bankruptcy, but when he does it's on August 14th. .
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Post by dreamboatcruise on May 30, 2017 12:30:19 GMT -5
matt... thanks for your additional insight. Obviously none of us can know what is going on behind the scenes, but knowing the drivers that are shaping what is going on behind the scenes is a helpful dose of reality.
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Post by babaoriley on May 30, 2017 12:39:12 GMT -5
This has been in the works. Matt was not fired. Exactly...from the PR..."Matt successfully set the foundation for the company during its transition into a commercial entity and effectively prepared Michael to be his successor.” Forget about all the words in the PR; the salient thing is Matt out, Mike in. The rest is corporate-speak. Wish I could golf everyday - even if work allowed, my back would not!
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Post by kbrion77 on May 30, 2017 12:40:21 GMT -5
So they need to bring in a seasoned CFO (I would say best of luck with current financial position) as well as a replacement CCO for Mike since he is now steering the ship for the entire company not just Afrezza. I'm not looking too much into press release but it did seem a little Afrezza heavy without mentioning any techno pipeline products. Who knows anymore.
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Post by kc on May 30, 2017 12:50:04 GMT -5
So they need to bring in a seasoned CFO (I would say best of luck with current financial position) as well as a replacement CCO for Mike since he is now steering the ship for the entire company not just Afrezza. I'm not looking too much into press release but it did seem a little Afrezza heavy without mentioning any techno pipeline products. Who knows anymore. I couldn't resist.....
Maybe Amgen has a seasoned CFO?
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Post by dreamboatcruise on May 30, 2017 12:50:42 GMT -5
The silence. The lack of management's visible concern about the short financial runway. The continued steps to move forward with TV commercials, One Drop partnership, international, etc. I agree with most that this has been strategically planned and an even bigger announcement is still to come sooner rather than later. So from your vast experience with companies facing liquidity issues, please point me to a transcript of a management conference call for me to understand these "visible concern" clues that companies always give. Many many companies go bankrupt, so I'm just wondering what it is that you normally see ahead of time... does the CEO normally start the call with "for the love of humanity, this job sucks... grab your life jackets we're going down!" I was an entrepreneur in tech during the dot com crash, and have seen friends of mine take companies through bankruptcy. Your view of what companies do and do not do when facing liquidity crisis is simply based on ignorance.
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Post by wgreystone on May 30, 2017 12:56:29 GMT -5
Hope Matt will deliver the partnership deal he hinted many times before leaving in July.
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Post by akemp3000 on May 30, 2017 13:03:30 GMT -5
The silence. The lack of management's visible concern about the short financial runway. The continued steps to move forward with TV commercials, One Drop partnership, international, etc. I agree with most that this has been strategically planned and an even bigger announcement is still to come sooner rather than later. So from your vast experience with companies facing liquidity issues, please point me to a transcript of a management conference call for me to understand these "visible concern" clues that companies always give. Many many companies go bankrupt, so I'm just wondering what it is that you normally see ahead of time... does the CEO normally start the call with "for the love of humanity, this job sucks... grab your life jackets we're going down!" I was an entrepreneur in tech during the dot com crash, and have seen friends of mine take companies through bankruptcy. Your view of what companies do and do not do when facing liquidity crisis is simply based on ignorance. I will not share or exchange personal insults but will be glad to share the very FIRST thing a management team does when facing impending bankruptcy is to stop spending money where possible which has not been the case with this company.
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Post by boca1girl on May 30, 2017 13:04:52 GMT -5
Is it possible that Mike will be heading the Afrezza US company and that Matt moves over to RLS or a Technosphere spin off? For Matt to just disappear after July seems odd.
I have been disappointed that Matt hasn't been a dynamic leader like an Elon Musk, but he has been able to keep the financial ship afloat through the transition from SNY.
I'm also concerned about Mike's ability to be CEO and that he would be the 5th named in the last two years (Mann, Haken, Desoto, Matt, Mike), unless there is another big announcement coming shortly with $$$ and partnerships ex-US.
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