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Post by falconquest on Sept 19, 2017 16:47:10 GMT -5
Shorts have been betting on dilution since this broke above 1.70 and more so above 2 bucks. Price stalled at 2.20 and people are taking profits. If anyone was lucky enough to have purchased under a dollar then it would make sense to get out at $2.20 and take money to the bank. I would have. I never really understood the run up in the first place. Sure wish I would have bought at $0.75 and sold at $2.20. What a great trade!
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Post by dreamboatcruise on Sept 19, 2017 16:55:41 GMT -5
Shorts have been betting on dilution since this broke above 1.70 and more so above 2 bucks. Price stalled at 2.20 and people are taking profits. If anyone was lucky enough to have purchased under a dollar then it would make sense to get out at $2.20 and take money to the bank. I would have. I never really understood the run up in the first place. Sure wish I would have bought at $0.75 and sold at $2.20. What a great trade! I scooped up a fair number of options right at the bottom, but even doing that I'm left with an effective break even price of $8.75... so haven't sold those options despite having big profit if taken in isolation. Of course if I had sold some here, smarter to sell my shares purchased at over $20 (adjusted for split) to realize a tax loss rather than a gain. But for now holding what I have and hoping Mike's guidance on recapitalization is sound. Maybe good choice, maybe not... time will tell.
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Post by tingtongtung on Sept 19, 2017 17:08:29 GMT -5
If anyone was lucky enough to have purchased under a dollar then it would make sense to get out at $2.20 and take money to the bank. I would have. I never really understood the run up in the first place. Sure wish I would have bought at $0.75 and sold at $2.20. What a great trade! I scooped up a fair number of options right at the bottom, but even doing that I'm left with an effective break even price of $8.75... so haven't sold those options despite having big profit if taken in isolation. Of course if I had sold some here, smarter to sell my shares purchased at over $20 (adjusted for split) to realize a tax loss rather than a gain. But for now holding what I have and hoping Mike's guidance on recapitalization is sound. Maybe good choice, maybe not... time will tell. I sold a bunch a month back for a huge loss (Sanofi deal time purchase - $30+, $40+..). That's only about 35% of my total losses here. Bought some today after wash sale period, to average down. I hope there will be no dilution. If any, very mild one! Good luck for us and MNKD :-)
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Post by dreamboatcruise on Sept 19, 2017 17:16:41 GMT -5
I scooped up a fair number of options right at the bottom, but even doing that I'm left with an effective break even price of $8.75... so haven't sold those options despite having big profit if taken in isolation. Of course if I had sold some here, smarter to sell my shares purchased at over $20 (adjusted for split) to realize a tax loss rather than a gain. But for now holding what I have and hoping Mike's guidance on recapitalization is sound. Maybe good choice, maybe not... time will tell. I sold a bunch a month back for a huge loss (Sanofi deal time purchase - $30+, $40+..). That's only about 35% of my total losses here. Bought some today after wash sale period, to average down. I hope there will be no dilution. If any, very mild one! Good luck for us and MNKD :-) If there is any dilution it probably wouldn't be what I'd considered "mild", though that term could mean radically different things to different people. To me "mild" would be like 10% and that wouldn't guarantee getting us to end of year.
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Post by tingtongtung on Sept 19, 2017 17:25:55 GMT -5
I sold a bunch a month back for a huge loss (Sanofi deal time purchase - $30+, $40+..). That's only about 35% of my total losses here. Bought some today after wash sale period, to average down. I hope there will be no dilution. If any, very mild one! Good luck for us and MNKD :-) If there is any dilution it probably wouldn't be what I'd considered "mild", though that term could mean radically different things to different people. To me "mild" would be like 10% and that wouldn't guarantee getting us to end of year. Hahaha.. I understand your point. At 2.02, the worst is losing 2.02.. So, any dilution is mild in this situation. But, anything less than 25% is ok with me. In a way, dilution doesn't bring in any money if you think about it.. Given the price at $2.02, how many new shares can you create while having a decent price? 50%? That brings it right back at de-listing (I know it takes more time, but still). But, just a few million cash accomplishes nothing (2-3 months?). We need a solid 90-100 million, or a partner or something. I don't know how/what Mike will do. Just like he got 2/3 analysts to ask questions in the conf call, he may come up with something.. If not, money wiped out for us :-(
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Post by otherottawaguy on Sept 20, 2017 14:42:02 GMT -5
You will be notified of impending dilution when you receive your notices requesting your vote on the expansion of the share count. Right now there are not enough shares left in the tank to fund much more than a quarter at the current price level. Something like 5-10 Million is what I seem to remember once all the employee perks, executive perks and convertibles are taken into account..
OOG
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Post by matt on Sept 20, 2017 16:09:22 GMT -5
Something like 5-10 Million is what I seem to remember once all the employee perks, executive perks and convertibles are taken into account.. That number is about right, or even a bit less than that with the most recent Deerfield deal. There are only two ways to raise significant new equity capital: 1. Call a special shareholders meeting and get the authorized share limit increased. That requires at least 21 days for the proxy solicitation and voting. 2. Use the 40 million in preferred stock. That is tied up at the moment due to the TASE listing, but as soon as TASE delists the company those shares can be used because they are already authorized (the TASE delisting becomes effective early November as I recall). Under Delaware law, the board can specify the terms for the "certificate of designation" for unissued preferred stock so it could give participation rights similar to 100 common or 1,000 common shares. The preferred could only be issued as convertible preferred if the authorized shares are increased.
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Post by mnholdem on Sept 20, 2017 16:49:55 GMT -5
I thought that TASE didn't permit two classes of stock and that only common was issued to the exchange. I read the SEC filing related to the TASE offering and saw no mention of preferred stock. Did I miss it?
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Post by dreamboatcruise on Sept 20, 2017 17:16:55 GMT -5
Something like 5-10 Million is what I seem to remember once all the employee perks, executive perks and convertibles are taken into account.. That number is about right, or even a bit less than that with the most recent Deerfield deal. There are only two ways to raise significant new equity capital: 1. Call a special shareholders meeting and get the authorized share limit increased. That requires at least 21 days for the proxy solicitation and voting. 2. Use the 40 million in preferred stock. That is tied up at the moment due to the TASE listing, but as soon as TASE delists the company those shares can be used because they are already authorized (the TASE delisting becomes effective early November as I recall). Under Delaware law, the board can specify the terms for the "certificate of designation" for unissued preferred stock so it could give participation rights similar to 100 common or 1,000 common shares. The preferred could only be issued as convertible preferred if the authorized shares are increased. Participation rights would include future dividends, correct? Is there anything else that would likely hold any value with regard to participation rights? In general do preferred with some multiple participation rights trade close to that multiple compared to their common, even when dividends are unlikely to be paid for a long time if ever? Setting the value question aside, I'm actually surprised that is legal. It seems like a stealth way of diluting by an arbitrarily large amount. Is there no principle of law in Delaware that prevents a company from selling substantially all of the future dividends off to preferred people/entities to the extreme detriment of common shareholders who wouldn't even have the option of participating?
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Post by cjm18 on Sept 20, 2017 20:01:55 GMT -5
Something like 5-10 Million is what I seem to remember once all the employee perks, executive perks and convertibles are taken into account.. That number is about right, or even a bit less than that with the most recent Deerfield deal. There are only two ways to raise significant new equity capital: 1. Call a special shareholders meeting and get the authorized share limit increased. That requires at least 21 days for the proxy solicitation and voting. 2. Use the 40 million in preferred stock. That is tied up at the moment due to the TASE listing, but as soon as TASE delists the company those shares can be used because they are already authorized (the TASE delisting becomes effective early November as I recall). Under Delaware law, the board can specify the terms for the "certificate of designation" for unissued preferred stock so it could give participation rights similar to 100 common or 1,000 common shares. The preferred could only be issued as convertible preferred if the authorized shares are increased. Isn't it blatantly obvious the decision to drop off tase was to free up prederred shares for dilution? 40 million shares at 1.5 bucks a share. Edit. 10 million or 40 million preferred shares?
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Post by mnkdfann on Sept 20, 2017 20:22:11 GMT -5
I thought that TASE didn't permit two classes of stock and that only common was issued to the exchange. I read the SEC filing related to the TASE offering and saw no mention of preferred stock. Did I miss it? Castagna mentioned this in a conference call. seekingalpha.com/article/4096149-mannkinds-mnkd-ceo-michael-castagna-q2-2017-results-earnings-call-transcript?part=single"So with that you saw this afternoon, we announced that we withdraw from the TASE stock exchange. We’re doing this for a couple of reason. We want to simplify our filings, we want to reduce our expenses, and also it frees up 10 million preferred shares." I'm not at all sure HOW delisting from TASE frees up the preferred shares. Unless it's just the case that any company listing on TASE is only allowed one class of share, period, anywhere. Except when I looked at the TASE regulations, at least part of them suggest that is not the case. So, who knows. Well, presumably the big C knows what he was talking aboot.
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