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Post by agedhippie on Jan 13, 2018 10:17:55 GMT -5
Agree with the first portion, though it certainly has an impact on cash flow and pulls forward the time when financing would need to occur and right now the market isn't in a very receptive mood towards MNKD. But if management chooses that route (assuming that Deerfield would be willing to take discount shares, which I don't see why they wouldn't) it would seem to mean they feel our share price will be in better shape even within a shortened window due to the cash draw down. DBC, how much of the original 160 Million has MNKD paid off? investors.mannkindcorp.com/releasedetail.cfm?ReleaseID=792120In addition to the debt there are milestone payments due to Deerfield at certain revenue points. Still, if we hit those we will be in reasonable shape.
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Post by peppy on Jan 15, 2018 10:56:26 GMT -5
ARTICLE I.
AMENDMENTS OF FACILITY AGREEMENT AND NOTES
Upon the terms and subject to the conditions set forth in this Agreement, the Facility Agreement is hereby amended as follows:
Section 1.01. Amendment of Facility Agreement .
(a) Schedule of Payments; Deferral . The Purchasers and Obligors acknowledge and agree that Schedule 1.01(a) to this Agreement sets forth a current schedule of the aggregate principal payments due to Purchasers under the Facility Agreement (without giving effect to this Agreement). Notwithstanding anything to the contrary contained in the Facility Agreement (including Section 2.3 thereof) or the Notes, but subject to Article VI of this Agreement, the $10,000,000 in principal amount of the Tranche 4 Notes (“ October 2017 Tranche 4 Principal Payment ”) due and payable on October 31, 2017 shall be deferred to, and be due and payable on, January 15, 2018.
Source: investors.mannkindcorp.com/secfiling.cfm?filingID=1193125-17-316062&CIK=899460 (See Exhibit 99.1)
MNKD shareholders should get a P.R. today?
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Post by golfeveryday on Jan 15, 2018 11:24:58 GMT -5
ARTICLE I.
AMENDMENTS OF FACILITY AGREEMENT AND NOTES
Upon the terms and subject to the conditions set forth in this Agreement, the Facility Agreement is hereby amended as follows:
Section 1.01. Amendment of Facility Agreement .
(a) Schedule of Payments; Deferral . The Purchasers and Obligors acknowledge and agree that Schedule 1.01(a) to this Agreement sets forth a current schedule of the aggregate principal payments due to Purchasers under the Facility Agreement (without giving effect to this Agreement). Notwithstanding anything to the contrary contained in the Facility Agreement (including Section 2.3 thereof) or the Notes, but subject to Article VI of this Agreement, the $10,000,000 in principal amount of the Tranche 4 Notes (“ October 2017 Tranche 4 Principal Payment ”) due and payable on October 31, 2017 shall be deferred to, and be due and payable on, January 15, 2018.
Source: investors.mannkindcorp.com/secfiling.cfm?filingID=1193125-17-316062&CIK=899460 (See Exhibit 99.1)
MNKD shareholders should get a P.R. today? don’t they technically have 4 days to announce material news?
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Post by compound26 on Jan 16, 2018 13:49:47 GMT -5
Personally I will be happy with either the note 1.) being pushed back for another quarter, or 2.) Mnkd paying the $10m. Obviously if the note is pushed back, then no harm/no foul. If mnkd pays the $10m, while shorts may see this as a lack of confidence by Deerfield and therefore say it is a negative event, I see it as a positive event and sign of strength by mnkd that they believe they are on the right path moving forward and have hence refused to lower the price and renegotiate the buy-out terms (which is the third and least favorable option in my opinion.) Paying Deerfield the $10m really should be no burden on cash as mnkd is mostly out of cash regardless by end of March or so and they can just add another $10m to the cash raise we all know is coming. GLTAL's!!!! Based on the fact that it is Jan. 16 today and Mannkind has not issued a PR on this (even though they did issue a PR today informing us that Mannkind will present in the NobleCon14 conference), I am assuming that Mannkind just paid the $10 million. Since the payment of the $10 million is just regular course business transaction, Mannkind does not need to issue a PR. If the above is true, I am good with that. That will mean that: (a) Mannkind is not willing to give Deerfield further discount of their previously agreed-upon $3.25 conversion price; and (b) Mannkind is pretty confident that they will be able to raise additional funds at a price higher than the current PPS in the near future.
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Post by tarheelblue004 on Jan 16, 2018 13:55:13 GMT -5
Agreed that is what likely happened, but also think MannKind has three business days to announce material events. So if we don’t hear anything by end of week, will almost certainly be because they paid the cash. And I agree compound that paying out $10M right now shows confidence in ability to raise cash at a higher valuation.
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Post by madog365 on Jan 16, 2018 14:55:12 GMT -5
I just don't see them paying this off, while having $25m in the bank per the requirement and still operating at the current burn rate with increased marketing efforts. There should be a PR this week furthur delaying the payment BUT if that doesn't happen than that must be additional cash infusion is imminent. They wouldn't risk getting close to $25m.
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Post by matt on Jan 16, 2018 16:44:55 GMT -5
MNKD shareholders should get a P.R. today? don’t they technically have 4 days to announce material news? You are correct that most 8-K disclosures have a four-day filing requirement, but I don't think there is an obligation to file anything. When the note was renegotiated the company disclosed that $10 million would be placed in escrow and that Deerfield had an option to take payment in shares in lieu of cash (essentially a call option with a $3.25 strike price). That satisfies the SEC requirement for disclosure on this transaction, and no further disclosure is required until the first quarter 10-Q is filed. That said, many companies will issue an 8-K or PR notice voluntarily even though not required to do so. If there were further negotiations that took place, such as Deerfield accepting a different number of shares than was originally disclosed, then that would trigger a filing obligation because of a material change in the terms.
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Post by peppy on Jan 17, 2018 15:33:05 GMT -5
don’t they technically have 4 days to announce material news? You are correct that most 8-K disclosures have a four-day filing requirement, but I don't think there is an obligation to file anything. When the note was renegotiated the company disclosed that $10 million would be placed in escrow and that Deerfield had an option to take payment in shares in lieu of cash (essentially a call option with a $3.25 strike price). That satisfies the SEC requirement for disclosure on this transaction, and no further disclosure is required until the first quarter 10-Q is filed. That said, many companies will issue an 8-K or PR notice voluntarily even though not required to do so. If there were further negotiations that took place, such as Deerfield accepting a different number of shares than was originally disclosed, then that would trigger a filing obligation because of a material change in the terms. so that means MNKD had to pay them or renegotiate? MNKD has until Friday to tell us if they renegotiated?
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Post by sportsrancho on Jan 17, 2018 18:11:36 GMT -5
If they took the shares, or the cash we hear nothing, if we renegotiated we hear something. Is the way I understand it ...
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Post by compound26 on Jan 17, 2018 18:17:56 GMT -5
If they took the shares, or the cash we hear nothing, if we renegotiated we hear something. Is the way I understand it ... That's true. However, since we are trading at $2.5, there is no reason for Deerfield to take the shares at $3.25. Therefore, most likely Mannkind paid the $10 million to settle the debt.
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Post by tz on Jan 17, 2018 18:22:44 GMT -5
If Deerfield bought 3m shares in the open market, the stock price will be $5 now. Currently, the shorts are doing left hand to right hand game and try to manipulate stock price down to make profit. I am happy they are doing that because the fundamental of the company is solid. The shorts won't work.
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Post by falconquest on Jan 17, 2018 19:12:57 GMT -5
If Deerfield bought 3m shares in the open market, the stock price will be $5 now. Currently, the shorts are doing left hand to right hand game and try to manipulate stock price down to make profit. I am happy they are doing that because the fundamental of the company is solid. The shorts won't work. Whoa, whoa, wait a minute. Can you define....."the fundamental of the company is solid." please?
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Post by tz on Jan 17, 2018 19:22:06 GMT -5
Doesn't matter. It is not necessary to define. Let us wait for 9 months to see what will happen. Go ahead to bet on the bankruptcy at that time. If it goes to bankruptcy, I fail with loosing $200K. If not, it is $50Billion business in 3~5 years.
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Post by falconquest on Jan 17, 2018 20:52:34 GMT -5
Doesn't matter. It is not necessary to define. Let us wait for 9 months to see what will happen. Go ahead to bet on the bankruptcy at that time. If it goes to bankruptcy, I fail with loosing $200K. If not, it is $50Billion business in 3~5 years. Ok, I already lost 200K. Not betting on bankruptcy but to say the "fundamental of the company is solid" is a bit of stretch isn't it? It should be a $50B dollar business I agree.........but it hasn't really gotten started now has it?
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Post by kc on Jan 17, 2018 20:59:56 GMT -5
You are correct that most 8-K disclosures have a four-day filing requirement, but I don't think there is an obligation to file anything. When the note was renegotiated the company disclosed that $10 million would be placed in escrow and that Deerfield had an option to take payment in shares in lieu of cash (essentially a call option with a $3.25 strike price). That satisfies the SEC requirement for disclosure on this transaction, and no further disclosure is required until the first quarter 10-Q is filed. That said, many companies will issue an 8-K or PR notice voluntarily even though not required to do so. If there were further negotiations that took place, such as Deerfield accepting a different number of shares than was originally disclosed, then that would trigger a filing obligation because of a material change in the terms. so that means MNKD had to pay them or renegotiate? MNKD has until Friday to tell us if they renegotiated? Peppy then wait for Friday’s scripts that hopefully will be moving upwards but that is not a given since we had several 4 day weeks and that makes data very questionable. The short weeks only helps the Spencer (FOR HIRE) Osborn articles. So lets play this out. Scripts come out Friday AM. Let’s wait until after market close to announce what they did with the 10 Million payment. What ever MannKind does is either good or bad and might as well do it later in the day. Do it after the market closes as it makes the SHORTIES very nervous as to what MannKind is going to do. Mike is a good poker player lets she what cards he holds in his hand.
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