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Post by gareaudan on Aug 13, 2018 20:46:33 GMT -5
What would get me reinvigorated is if Mike would close a deal. Come on man, give us a deal. yeap and with a substantial upfront payment would be great, not the rls type that didnt do squat. |
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Post by jred on Aug 14, 2018 11:36:51 GMT -5
I think the key sentence here was "We WERE overleveraged and our hands tied with stock warrants that a ratchet provision is preventing us from effectively raising capital.
Notice the past-tence on that line. Yes, I noted that several posts ago, but in the same sentence he then switches to the present tense and says, "a ratchet provision is preventing us from effectively raising capital." So is the ratchet provision still affecting them; if so, what's the solution? I believe Steve Binder is referring to warrants issued 5/10/16 - SEC filing The warrants had a price adjustment provision so that if the company issued shares below the strike price of the warrants the warrant terms would be adjusted down. After the stock price dropped after May 2016 it would have resulted in an huge adjustment that benefited the warrant holders. The warrants had 2 year and 2 1/2 year durations, so instead of having to wait it out before issuing more shares MNKD bought back the warrants in Sept 2017 SEC filing.
Issuing warrants with these terms was really short sided of management at the time. Once Steve Binder came aboard, retiring these warrants was one of his first moves and started to give me some confidence that the new management team might actually know what they were doing. I am not aware of any warrants since that have similar provisions.
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