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Post by cjm18 on Jul 13, 2018 8:05:07 GMT -5
25m according to last page. We still must keep 20m in bank for them? The remaining total debt is much, much higher than 25m. Deerfield debt.
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Post by celo on Jul 13, 2018 8:06:23 GMT -5
25m according to last page. We still must keep 20m in bank for them? The remaining total debt is much, much higher than 25m. Correct, but the 71 million held by the Mann group is not due until 2021. Deerfield is the main driver of the share price stability/slowly decreasing, as they sell their shares soon after completion of the swaps.
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Post by sayhey24 on Jul 13, 2018 8:09:02 GMT -5
The significance is MNKD continues to march forward to plan with little impact to current shareholders. The "Open for Business" sign is still on the door but a little more tape has been added to keep it in place.
"The research and clinical response to Afrezza as a mealtime insulin supports ongoing efforts to establish this product as the standard of care for those living with type 1 or type 2 diabetes," said Dr. Kendall. "Afrezza is the only inhaled fast-acting mealtime insulin on the market, and offers the right patients a flexible, safe, and effective treatment option. I'm thrilled to join MannKind, and look forward to being part of a company that has the potential to transform the lives of so many people that are living with diabetes."
And let me add, its been a long four years. We are thrilled to have Mike and Dr. Kendall and to finally have a well defined executable plan which will bring the growth of afrezza sales we have expected since approval.
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Post by traderdennis on Jul 13, 2018 8:22:17 GMT -5
It’s also dilutive, Deerfield is getting 7,367,839 shares in exchange for wiping out $12 million in convertible notes (average price per share of $1.71). i) issue to Deerfield 7,367,839 shares of the Company’s common stock in exchange for the cancellation of (a) $7.0 million of $10.0 million principal amount under the Company’s Amended and Restated 9.75% Senior Convertible Notes due 2019 (the “Tranche 4 Notes”) that is due and payable on July 18, 2018, (b) $3.0 million of $5.0 million principal amount under the Tranche 4 Notes due 2019 that is due and payable on December 31, 2019 and (c) $2.0 million of $2.0 million principal amount under the Company’s 8.75% Senior Convertible Notes due 2019 that is due and payable on December 31, 2019 Of which they will dump in the open market, but hopefully at a higher SP then $1.80 or, they'll be happy at less then $1.80 and reduce their losses. Since the short interest is up by about seven million shares over the last period Deerfield most likely already sold short on June 22 for 1.85 to 2.06 per share.
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Post by boca1girl on Jul 13, 2018 8:35:49 GMT -5
Of which they will dump in the open market, but hopefully at a higher SP then $1.80 or, they'll be happy at less then $1.80 and reduce their losses. Since the short interest is up by about seven million shares over the last period Deerfield most likely already sold short on June 22 for 1.85 to 2.06 per share. So do you guess that they will close that short postion by the end of next week?
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Post by centralcoastinvestor on Jul 13, 2018 8:45:12 GMT -5
I just want Deerfield to go away. As soon as we can pay off the total debt to them the better. The shorting they do around payment of their debt with stock is killing us. I know Mike C. has said that he appreciates them working with us. But this is getting tiring. They just sell every share they get and short it before each announcement. You know the saying: “With friends like Deerfield, who needs ......”
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Post by tomtabb on Jul 13, 2018 8:45:18 GMT -5
Am I reading it correctly when it appears to say they will still owe 3 million dollars to Deerfield in six weeks? That seems odd -- why didn't they use shares for that as well?
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Post by awesomo on Jul 13, 2018 8:53:01 GMT -5
Am I reading it correctly when it appears to say they will still owe 3 million dollars to Deerfield in six weeks? That seems odd -- why didn't they use shares for that as well? Because Deerfield holds ALL the leverage in any negotiations. If this is the structure Deerfield wants, MannKind essentially has to oblige, otherwise Deerfield will just walk away from the discussion and say "enjoy the looming debt".
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Post by brotherm1 on Jul 13, 2018 8:53:54 GMT -5
I’m just glad I went back and re-read the title of this thread after I was freaking for more than a few minutes. I initially thought the 8 was a B. Whewww!
Can we please place a — between the 8 and the K?
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Post by rockstarrick on Jul 13, 2018 8:58:34 GMT -5
Is it safe to say this 7 million shares represents the 7 million rise in our monthly short interest ?? If so, it’s already priced in ??
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Post by mnholdem on Jul 13, 2018 8:58:35 GMT -5
I just want Deerfield to go away. As soon as we can pay off the total debt to them the better. The shorting they do around payment of their debt with stock is killing us. I know Mike C. has said that he appreciates them working with us. But this is getting tiring. They just sell every share they get and short it before each announcement. You know the saying: “With friends like Deerfield, who needs ......” That will be huge when it finally happens since nearly 100% of MannKind’s assets (including intellectual property) is held as collateral to Deerfield.
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Post by babaoriley on Jul 13, 2018 9:35:45 GMT -5
What is the significance of $1.80? One significance is that it makes it highly unlikely the last round of warrants will be exercised because they are priced at $2.38. If the stock price increases above $2.00 look for Deerfield to exercise their option to convert at $1.80 and immediately sell the shares, bringing the price down again. It is unlikely that Deerfield can be paid off in full using $1.80 stock before the $2.38 warrants expire in early April next year. Effectively, this deal puts a ceiling on the market price for the next year or two.Matt, you're a very intelligent guy - why would you try to sneak the bolded statement in there? Many things could happen to push the stock through that level, just as many things can happen to push it the other way.
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Post by tomtabb on Jul 13, 2018 9:36:58 GMT -5
Am I reading it correctly when it appears to say they will still owe 3 million dollars to Deerfield in six weeks? That seems odd -- why didn't they use shares for that as well? Because Deerfield holds ALL the leverage in any negotiations. If this is the structure Deerfield wants, MannKind essentially has to oblige, otherwise Deerfield will just walk away from the discussion and say "enjoy the looming debt". I know but why would Deerfield want that structure? If they'll take shares for 7, why not take a few more shares for 3? What's special about six weeks?
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Post by awesomo on Jul 13, 2018 9:41:27 GMT -5
Because Deerfield holds ALL the leverage in any negotiations. If this is the structure Deerfield wants, MannKind essentially has to oblige, otherwise Deerfield will just walk away from the discussion and say "enjoy the looming debt". I know but why would Deerfield want that structure? If they'll take shares for 7, why not take a few more shares for 3? What's special about six weeks? Deerfield is all about hedging, a mix of stock and cash is safer than all stock.
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Post by rockstarrick on Jul 13, 2018 9:42:55 GMT -5
One significance is that it makes it highly unlikely the last round of warrants will be exercised because they are priced at $2.38. If the stock price increases above $2.00 look for Deerfield to exercise their option to convert at $1.80 and immediately sell the shares, bringing the price down again. It is unlikely that Deerfield can be paid off in full using $1.80 stock before the $2.38 warrants expire in early April next year. Effectively, this deal puts a ceiling on the market price for the next year or two.Matt, you're a very intelligent guy - why would you try to sneak the bolded statement in there? Many things could happen to push the stock through that level, just as many things can happen to push it the other way. Exactly show me anything that will put a ceiling on any stock for a year or two. Anything at anytime, can, and will happen, especially with Mannkind. In two years, if we are still in the $1.70 to $1.80 range, I’ll respectfully retract my statement. 😜
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