MannKind Announces Pricing of $40 Million Public Offering

[kite]

www.globenewswire.com/news-release/2018/12/20/1669975/0/en/MannKind-Announces-Pricing-of-40-Million-Public-Offering.html


WESTLAKE VILLAGE, Calif., Dec. 19, 2018 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq: MNKD) (MannKind) today announced the pricing of an underwritten public offering of 26,666,667 shares of its common stock and warrants to purchase up to an aggregate of 26,666,667 shares of its common stock. Each share of common stock is being sold together with a warrant to purchase one share of common stock for a combined purchase price of $1.50, for a gross deal size of $40.0 million, not including any future proceeds from the exercise of the warrants and before deducting the underwriting discounts and commissions and offering expenses. Each warrant will have an exercise price of $1.60 per share, will be exercisable immediately and will expire on the 12-month anniversary of the date of issuance. The shares of common stock and warrants can only be purchased together but will be issued separately and will be immediately separable upon issuance. The offering is expected to close on December 26, 2018, subject to customary closing conditions.

Leerink Partners is acting as sole book-running manager for the offering. BTIG, LLC and Oppenheimer & Co. Inc. are acting as co-lead managers for the offering. H.C. Wainwright & Co., LLC acted as a financial advisor to MannKind in connection with the offering.

The securities described above are being offered by MannKind pursuant to a shelf registration statement on Form S-3 (No. 333-210792) previously filed by MannKind with the Securities and Exchange Commission (SEC) on April 18, 2016 and declared effective on April 27, 2016. The offering will be made only by means of a written prospectus and prospectus supplement that form part of the registration statement. A preliminary prospectus supplement related to the offering and accompanying prospectus has been filed with the SEC and is available on the SEC website located at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus related to the offering, when available, may be obtained from Leerink Partners LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, telephone: [phone], ext. 6132, or by email at [e-mail].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of any securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About MannKind Corporation

MannKind Corporation (Nasdaq: MNKD) focuses on the development and commercialization of inhaled therapeutic products for patients with diseases such as diabetes and pulmonary arterial hypertension. MannKind is currently commercializing Afrezza® (insulin human) Inhalation Powder, the Company's first FDA-approved product and the only inhaled rapid-acting mealtime insulin in the United States, where it is available by prescription from pharmacies nationwide. MannKind is headquartered in Westlake Village, California, and has a state-of-the art manufacturing facility in Danbury, Connecticut. The Company also employs field sales and medical representatives across the U.S.

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature, including statements regarding MannKind’s expectations with respect to its public offering, including the anticipated closing date, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believes,” “anticipates,” “plans,” “expects,” “intends,” “will,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements. These statements are based upon MannKind’s current expectations. Actual events or results could differ materially from those anticipated in such forward-looking statements due to various factors, including market risks and uncertainties and the satisfaction of customary closing conditions for an offering of securities. For a discussion of these and other factors, please refer to MannKind’s quarterly report on Form 10-Q for the quarter ended September 30, 2018 as well as MannKind’s other filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement, and MannKind undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof, except as required by law.

MannKind Contact:

Rose Alinaya
SVP, Investor Relations
818-661-5000
[e-mail]

[dreamontrader]

I like this a lot.

[uvula]

Why do you like this? 15% share dilution.

[centralcoastinvestor]

Dec 20, 2018 0:01:31 GMT -5 dreamontrader said:

I like this a lot.

Why?

[dreamontrader]

Dec 20, 2018 0:08:52 GMT -5 centralcoastinvestor said:

Dec 20, 2018 0:01:31 GMT -5 dreamontrader said:

I like this a lot.

Why?

Different players involved and mannkind needs more money for 2019 push.

Leerink Partners is acting as sole book-running manager for the offering. BTIG, LLC and Oppenheimer & Co. Inc. are acting as co-lead managers for the offering. H.C. Wainwright & Co., LLC acted as a financial advisor to MannKind in connection with the offering.

[ilovekauai]

Okay DT I'll take that and hope you're correct in the long run here. This is really screwing up my evening, but not the first time with MNKD. Such a struggle to make this train go, and if any other true Long wants to post in tonite please do. I'm a curious cat and will be watching the board. Thank you.

[awesomo]

That warrant price is awful, we’re gonna be pinned to it for a year.

[wgreystone]

Need to buy 30% more shares to counter the dilution.

[babaoriley]

Dec 20, 2018 0:29:51 GMT -5 awesomo said:

That warrant price is awful, we’re gonna be pinned to it for a year.

That's a typical platitude in the event of warrant issuance, awesome.  Many might make it, and others might nod in agreement.  And those people would either be short or just too bloodied to actually think.

If good things happen, we'll go right on by $1.60 and $2.38 and any other artificial ceiling, and I think you know that.  I'm not saying good things will happen, just that your comment needs to be examined a bit more carefully.

[awesomo]

Dec 20, 2018 1:58:15 GMT -5 babaoriley said:

Dec 20, 2018 0:29:51 GMT -5 awesomo said:

That warrant price is awful, we’re gonna be pinned to it for a year.

That's a typical platitude in the event of warrant issuance, awesome.  Many might make it, and others might nod in agreement.  And those people would either be short or just too bloodied to actually think.

If good things happen, we'll go right on by $1.60 and $2.38 and any other artificial ceiling, and I think you know that.  I'm not saying good things will happen, just that your comment needs to be examined a bit more carefully.

Fair enough, but this stock is a hedge fund dream.  One that they can short freely if they hold said warrants.

[babaoriley]

Damn, awesomo, we have something in common!

[sportsrancho]

I have to say those warrants are toxic, it makes it a lot harder to bust through the ceiling, but of course you’re right we could on good news:-)
It was in my opinion the worst thing about the deal. Not happy!

[celo]

I was wondering why the share price has been pegged for quite a while and now I know.
It seems like Mannkind could of gotten a higher share price on this offering if they had it more closely tied with their collaboration with United. After their great announcement with United, MNKD came back down quickly and stayed between 1.65 and 2.00 and yet they could not get a price for shares in that range. Poor planning.
Hoping for the warrants to be exercised, having it not happen and then having your pocket picked clean by having to issue a ton of shares and more warrants at a lower price is poor planning.
I guess they can always rely on the shareholders to bare the burden when they don't get the share price for the warrants they wanted.
Mannkind has done a lot of great things recently, but if you keep dropping the bucket in the well pretty soon it might run dry.

[pat]

In the end, monetizing technosphere will make MNKD a 100 B company.

I continue to buy shares and options. My portion of the market cap will make me independently wealthy despite this dilution.

What gets me is the A-holes that sold shares short can now cover. They effectively pre sold this offering and captured the balance between what they sold at and what the company will get.

Now they’ll move on and pull the same cr@p somewhere else.

Charltans.

The man in the glass.

[prcgorman2]

"Now they’ll move on and pull the same cr@p somewhere else."

If I honestly thought they would move on, I'd welcome the dilution.

Just further proof that "there is no magic". It takes capital to run a business, and if you're not making enough on sales of your product, then you either have to take on debt, or sell more equity, or both. When the last batch of shares was authorized by the shareholders (after the massively painful reverse split) I had naively hoped they would indulge in a massive dilution. That was naive on multiple levels, but might have raised a couple of hundred million dollars. If the end is as ignomnious as has always been possible, it will indeed have been death by a thousand cuts.

But, misstep or poor planning, or springboard, what's done is done. And there is more money to fund sales, advertising, and development. And, through all of this, the world's only FDA-approved inhalable human mealtime nsulin available on the market today, the insulin that has a faster onset of effective action than so-called Rapid Acting Analogue insulins, and a faster elimination remains just as good as the day it was approved.

Now the question for me, a lowly buy-and-hold long is, do I buy more, or just continue to hold?