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Post by tz on Jun 5, 2018 11:36:09 GMT -5
Are the employees trying to increase their holdings?
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Post by sportsrancho on Jun 5, 2018 11:36:27 GMT -5
This was voted on at the ASM, Mike also mentioned the interest from the employees and stated that the percentage of employees interested was actually higher than the typical participation. Bio, Sports, Baba, Central or anyone else please correct me if that is not what you heard also. Thanks -J Yes I remember now. Good for them they know what’s ahead:-) I hope they all do extremely well. From what I hear most love their jobs and they enjoy going out every day and changing lives!
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Post by stockwhisperer on Jun 5, 2018 11:57:08 GMT -5
It is a good thing to do and I do now see it as a concern as far as major dilution unless I am missing something here. Could you explain how you see this as a concern? I am sorry but I don't follow your logic. Sorry, it is a typo... should read, I do not see it as a concern as far as major dilution unless I am missing something here.
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Post by stockwhisperer on Jun 5, 2018 12:19:42 GMT -5
I have no issue with it. More skin in the game. Normally purchased shares at a slight discount but not sure on this plan. It might just be at market value. But why not have it? Let them buy shares with Payroll dollars is just like saving in a 401K. Also a GREAT SIGNAL to the street that the company is confident about being around in the future. why does that show confidence? What would happen if the company goes bk anyway? Absolutly not saying that's what will happen but i dont see the link between the two things. Some perception - mostly reality... imo, most would view it as a good sign. Here’s an excerpt about these type programs. Also a link to the entire article, if interested. ”Being part of an ESOP company can provide unique rewards for employees. Participants in the plan can receive significant retirement benefits at no monetary cost to them. Research shows ESOP companies are more productive, faster growing, more profitable and have lower turnover — benefits that accrue to all stakeholders including the retirement accounts of the employee-owners. In addition, an ESOP is a great way to enhance the company’s ability to recruit and retain top talent. Effective and ongoing employee communications to encourage employees to think and act like owners is necessary in order to generate these benefits.” www.di.net/articles/employee-stock-ownership-plans-the-pros-and-cons/
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Post by gareaudan on Jun 5, 2018 12:30:55 GMT -5
why does that show confidence? What would happen if the company goes bk anyway? Absolutly not saying that's what will happen but i dont see the link between the two things. Some perception - mostly reality... imo, most would view it as a good sign. Here’s an excerpt about these type programs. Also a link to the entire article, if interested. ”Being part of an ESOP company can provide unique rewards for employees. Participants in the plan can receive significant retirement benefits at no monetary cost to them. Research shows ESOP companies are more productive, faster growing, more profitable and have lower turnover — benefits that accrue to all stakeholders including the retirement accounts of the employee-owners. In addition, an ESOP is a great way to enhance the company’s ability to recruit and retain top talent. Effective and ongoing employee communications to encourage employees to think and act like owners is necessary in order to generate these benefits.” www.di.net/articles/employee-stock-ownership-plans-the-pros-and-cons/thanks stockwhisperer. I appreciate it. Very interresting article.
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Post by derekewhitlock on Jun 5, 2018 12:47:29 GMT -5
ahh, sorry, I apparently cruised right by my answer
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Post by dreamboatcruise on Jun 5, 2018 13:21:48 GMT -5
I suspect employees have asked about such a program as those who are dedicated to the company may want to be part of possible future gains. It's a nice program to offer in any case. It is a good thing to do and I do now see it as a concern as far as major dilution unless I am missing something here. It's an additional 2M shares. A year ago that might have seemed large, but with the level of shares that have been created and obligated since, it starts looking small.
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Post by dreamboatcruise on Jun 5, 2018 13:27:36 GMT -5
Perhaps someone that is more familiar with SEC filings could explain about the purchase. It seems a max price is set based on May 29th ($1.94). Yet it seems from the plan document the shares will actually be sold at market price over an extended period of time. Does this mean if an employee signs up to purchase and the share price is above $1.94 on their designated purchase date that the transaction does not happen and the employees money is returned? That seems strange to have a max price if it is supposed to be at the market. Or is that max price listed for the SEC, something that isn't set in stone or simply updated if it is exceeded?
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Post by mytakeonit on Jun 5, 2018 13:31:44 GMT -5
It may look small ... but, it'll be held by people in house who probably have no desire to manipulate MNKD in a short way.
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Post by theshiv on Jun 5, 2018 13:46:19 GMT -5
Yes. Shares that are not likely to be shorted and they get a potential piece of the action.
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Post by mnkdfann on Jun 5, 2018 13:55:43 GMT -5
Im not sure i understand this. What is the advantage for the employees to buy those shares if it is at the same price as the market? They could have bought at this price for the last 2 months and 6 months in 2017. They had all the time they needed if they wanted to buy. Is there any advantage for the company? Im not getting the point. I haven't gone over the details with a fine tooth comb, but I presume these shares are coming direct from Mannkind so Mannkind gets the cash. Whereas if the shares were bought by the employees on the open market, Mannkind would get nothing out of it. It also says that 1.94 is the maximum offering price, so the shares might still be issued for less.
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Post by dreamboatcruise on Jun 5, 2018 14:00:23 GMT -5
Im not sure i understand this. What is the advantage for the employees to buy those shares if it is at the same price as the market? They could have bought at this price for the last 2 months and 6 months in 2017. They had all the time they needed if they wanted to buy. Is there any advantage for the company? Im not getting the point. I haven't gone over the details with a fine tooth comb, but I presume these shares are coming direct from Mannkind so Mannkind gets the cash. Whereas if the shares were bought by the employees on the open market, Mannkind would get nothing out of it. It also says that 1.94 is the maximum offering price, so the shares might still be issued for less. Yes, direct from MNKD as this is a registration statement... i.e. new to the market shares. If it is at the market, and there isn't some hidden discount built in (still uncertain about this "max price"), then it would seem this is primarily to allow employees to do purchasing in a way that contributes a little to funding the company.
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Post by gareaudan on Jun 5, 2018 14:17:49 GMT -5
Im not sure i understand this. What is the advantage for the employees to buy those shares if it is at the same price as the market? They could have bought at this price for the last 2 months and 6 months in 2017. They had all the time they needed if they wanted to buy. Is there any advantage for the company? Im not getting the point. I haven't gone over the details with a fine tooth comb, but I presume these shares are coming direct from Mannkind so Mannkind gets the cash. Whereas if the shares were bought by the employees on the open market, Mannkind would get nothing out of it. It also says that 1.94 is the maximum offering price, so the shares might still be issued for less. ok... that's nice but it is only 3,8M. I would love to have that kind of money but i dont think this is going to make a big difference for mnkd. Thanks anyway for the response
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Post by theshiv on Jun 5, 2018 15:26:16 GMT -5
Perhaps it is as simple as MNKD making a move to look and smell more like a real corporate entity. If I were an employee, I would like the option to buy in house.
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Post by dreamboatcruise on Jun 5, 2018 16:18:48 GMT -5
Perhaps it is as simple as MNKD making a move to look and smell more like a real corporate entity. If I were an employee, I would like the option to buy in house. My brief stints with large corporations have had stock purchase plans but with a discount. If there is no discount, there isn't really an advantage to the employee. I believe one of the plans I had many years ago was something like once a quarter there was a purchase date. We got 15% discount to the lower the average over the past quarter or the market price on the purchase date. That was a sweet deal because one could always turn around and sell at a profit. Though I might be conflating terms from 2 plans I've participated in long ago. Perhaps to offer a discount it must be approved by shareholders.
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