|
Post by celo on Sept 25, 2017 11:13:59 GMT -5
Mike has been saying the answer to Mannkind's lack of cash is to continue the ongoing recapitalization process. Cash reserves are getting low, yet Mike seems to state this process will be fluid and a non-issue. I would like to hear your thoughts on what will be the most likely sources of cash during the recapitalization process. I do not think there will be some magic source of money coming in because Mike has stated recap will continue. I do believe, after the label change, dilution will be the solution. Any other options you can infer from what Mike is saying?
|
|
|
Post by madog365 on Sept 25, 2017 11:21:15 GMT -5
The sale of 20M(?) preferred shares from TASE, the sale and leaseback of the Danbury facility,and potentially additional but limited dilution of common shares.
|
|
|
Post by celo on Sept 25, 2017 11:24:29 GMT -5
The sale of 20M(?) preferred shares from TASE, the sale and leaseback of the Danbury facility,and potentially additional but limited dilution of common shares. So the sale of the 20M preferred shares from TASE will act as a dilution to the current share count? Who will manage this? Will this roughly equal 40 million of cash for Mannkind, depending on current share price?
|
|
|
Post by ghochr on Sept 25, 2017 11:37:09 GMT -5
The sale of 20M(?) preferred shares from TASE, the sale and leaseback of the Danbury facility,and potentially additional but limited dilution of common shares. So the sale of the 20M preferred shares from TASE will act as a dilution to the current share count? Who will manage this? Will this roughly equal 40 million of cash for Mannkind, depending on current share price? They are transferring common shares that trade on TASE to Nasdaq and not preferred shares. That will allow MNKD to sell 10 million preferred shares as TASE doesn't allow 2 classes of shares They can sell each preferred shares on their own terms as long as someone is willing to buy - 10 or 25 or 100 per share , convertible or not or just interest payments
|
|
|
Post by madog365 on Sept 25, 2017 11:40:40 GMT -5
So the sale of the 20M preferred shares from TASE will act as a dilution to the current share count? Who will manage this? Will this roughly equal 40 million of cash for Mannkind, depending on current share price? They are transferring common shares that trade on TASE to Nasdaq and not preferred shares. That will allow MNKD to sell 10 million preferred shares as TASE doesn't allow 2 classes of shares They can sell each preferred shares on their own terms as long as someone is willing to buy - 10 or 25 or 100 per share , convertible or not or just interest payments Thanks, that's i meant Now this would not be considered dilutive since these shares are all already approved and in market correct?
|
|
|
Post by celo on Sept 25, 2017 11:42:28 GMT -5
Preferred share holders receive any assets during bankruptcy over common share holders. They also will receive better dividend payments then common. I wonder who will purchase and at what price any preferred shares?
|
|
|
Post by sportsrancho on Sept 25, 2017 11:49:12 GMT -5
Definition of recapitalisation When a company changes its capital structure (the proportion of equity to debt), This may occur, for instance, as part of a debt restructuring, when a creditor exchanges an outstanding loan for a stake in the company (debt for equity swap). While the aim of a recapitalisation is normally to improve a company's debt/equity ratio, it can also be used to fend off a hostile takeover - in which case the company makes itself unattractive by increasing the level of debt in its capital and using the funds to pay special dividends to shareholders.
IDK, was just looking up what it actually meant or could mean.
|
|
|
Post by ghochr on Sept 25, 2017 11:51:22 GMT -5
They are transferring common shares that trade on TASE to Nasdaq and not preferred shares. That will allow MNKD to sell 10 million preferred shares as TASE doesn't allow 2 classes of shares They can sell each preferred shares on their own terms as long as someone is willing to buy - 10 or 25 or 100 per share , convertible or not or just interest payments Thanks, that's i meant Now this would not be considered dilutive since these shares are all already approved and in market correct? Some preferred shares can be issued to be convertible in future. So it depends based on the terms set.
|
|
|
Post by babaoriley on Sept 25, 2017 11:51:47 GMT -5
Unless we get revenue from whatever source (ie. foreign deal), I believe any raising of money will be dilutive. But we need money, so, if it's not surprise revenue, it is what it is and we move on with the hope that the little momentum we've built lately can mushroom over the next six months or so.
Sell the company, Mike!!
|
|
|
Post by celo on Sept 25, 2017 12:06:14 GMT -5
Thanks, that's i meant Now this would not be considered dilutive since these shares are all already approved and in market correct? Some preferred shares can be issued to be convertible in future. So it depends based on the terms set. Wouldn't the funds raised from the sale of the TASE shares already be in the coffers of Mannkind, from whatever point the initial TASE offering occurred? It seems like Mannkind share count would already include the shares on any stock exchange?
|
|
|
Post by ghochr on Sept 25, 2017 12:21:38 GMT -5
Some preferred shares can be issued to be convertible in future. So it depends based on the terms set. Wouldn't the funds raised from the sale of the TASE shares already be in the coffers of Mannkind, from whatever point the initial TASE offering occurred? It seems like Mannkind share count would already include the shares on any stock exchange? I don't get what you are asking may be some other users can make it clear for you. Sorry
|
|
|
Post by jred on Sept 25, 2017 12:25:22 GMT -5
They are transferring common shares that trade on TASE to Nasdaq and not preferred shares. That will allow MNKD to sell 10 million preferred shares as TASE doesn't allow 2 classes of shares They can sell each preferred shares on their own terms as long as someone is willing to buy - 10 or 25 or 100 per share , convertible or not or just interest payments Thanks, that's i meant Now this would not be considered dilutive since these shares are all already approved and in market correct? Correct - the transfer of the TASE shares to Nasdaq isn't dilutive. The number of issued and outstanding shares won't change, but Mannkind doesn't get any money either. If they go the convertible route with the 10 million preferred shares (and imo they will), Mannkind will have to increase the number of authorized shares to raise any significant dollars. They could come to an agreement with a buyer, announce the proposed terms and then setup a shareholder vote to approve increase in outstanding shares. If approved, they could then issue the preferred shares and collect the proceeds. It would be dilutive for all existing share holders, but there wouldn't be a flood of new common shares hitting the market to help the shorts cover their positions.
|
|
|
Post by celo on Sept 25, 2017 12:31:23 GMT -5
So the sale of the 20M preferred shares from TASE will act as a dilution to the current share count? Who will manage this? Will this roughly equal 40 million of cash for Mannkind, depending on current share price? They are transferring common shares that trade on TASE to Nasdaq and not preferred shares. That will allow MNKD to sell 10 million preferred shares as TASE doesn't allow 2 classes of shares They can sell each preferred shares on their own terms as long as someone is willing to buy - 10 or 25 or 100 per share , convertible or not or just interest payments OK. You are saying the removal of MNKD from the TASE exchange will ALLOW Mannkind the possibility to sell preferred shares. Would the authorization of preferred shares need shareholder approval? An increase in common shares need a vote by shareholders to be approved.
|
|
|
Post by celo on Sept 25, 2017 12:35:01 GMT -5
Thanks, that's i meant Now this would not be considered dilutive since these shares are all already approved and in market correct? Correct - the transfer of the TASE shares to Nasdaq isn't dilutive. The number of issued and outstanding shares won't change, but Mannkind doesn't get any money either. If they go the convertible route with the 10 million preferred shares (and imo they will), Mannkind will have to increase the number of authorized shares to raise any significant dollars. They could come to an agreement with a buyer, announce the proposed terms and then setup a shareholder vote to approve increase in outstanding shares. If approved, they could then issue the preferred shares and collect the proceeds. It would be dilutive for all existing share holders, but there wouldn't be a flood of new common shares hitting the market to help the shorts cover their positions. Thanks. My question is now answered. Problem for MNKD is cash will be running out probably before this process can be approved by shareholders. Unless it can be expedited.
|
|
|
Post by saxcmann on Sept 25, 2017 12:43:24 GMT -5
Correct - the transfer of the TASE shares to Nasdaq isn't dilutive. The number of issued and outstanding shares won't change, but Mannkind doesn't get any money either. If they go the convertible route with the 10 million preferred shares (and imo they will), Mannkind will have to increase the number of authorized shares to raise any significant dollars. They could come to an agreement with a buyer, announce the proposed terms and then setup a shareholder vote to approve increase in outstanding shares. If approved, they could then issue the preferred shares and collect the proceeds. It would be dilutive for all existing share holders, but there wouldn't be a flood of new common shares hitting the market to help the shorts cover their positions. Thanks. My question is now answered. Problem for MNKD is cash will be running out probably before this process can be approved by shareholders. Unless it can be expedited. 21 day process,they have time.
|
|