|
|
Post by sexychefski on Jan 17, 2019 4:57:33 GMT -5
If we hit the warrant price, will mannkind automatically get some cash?
|
|
|
|
Post by rossomalley on Jan 17, 2019 6:43:02 GMT -5
If we hit the warrant price, will mannkind automatically get some cash? No. |
|
|
|
Post by peppy on Jan 17, 2019 6:48:22 GMT -5
investors.mannkindcorp.com/news-releases/news-release-details/mannkind-announces-pricing-40-million-public-offeringPDF Version MannKind Announces Pricing of $40 Million Public Offering 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.
|
|
|
|
Post by golfeveryday on Jan 17, 2019 7:08:59 GMT -5
If we hit the warrant price, will mannkind automatically get some cash? I believe the ‘investor’ has the option to purchase additional shares at $1.60. They wouldn’t do that unless they thought it would never drop below $1.60 again. |
|
|
|
Post by boca1girl on Jan 17, 2019 8:08:17 GMT -5
If we hit the warrant price, will mannkind automatically get some cash? I believe the ‘investor’ has the option to purchase additional shares at $1.60. They wouldn’t do that unless they thought it would never drop below $1.60 again. The warrants are good for all of 2019. There is no need for them to be exercised before 12/2019. If the company is in a cash pinch before year end, then will will see if the warrant holders are truly supporters of the company. |
|
|
|
Post by matt on Jan 17, 2019 8:35:00 GMT -5
Warrants are similar to call options, the only difference being that a warrant issued by the company increased the shares outstanding while call options are traded between third parties and do not affect the share count. As a general rule, no option or warrant is ever exercised until the last day before expiration because as an option the holder enjoys the upside above the strike price, but is protected from any downside.
Once an option or warrant is exercised, the holder owns a share of stock which exposes them to both the upside and the downside. Since there is economic value to the downside protection, a warrant holder will wait until the expiration date before exercising. The exception to this rule is when a stock is about to pay a dividend and early exercise will allow the holder to take part in the dividend distribution, but that is not relevant for MNKD and most other small cap stocks.
|
|
|
|
Post by bigchungus91354 on Jan 17, 2019 10:21:19 GMT -5
If we hit the warrant price, will mannkind automatically get some cash? If the stock price gets above 1.60, the holders could exercise, and MNKD would get cash. Mike has a plan, like he said on the conference, he might get the stock back to 1.60 by December, if not, he gets the share count back and can sell those shares at whatever price. So we're good! |
|
|
|
Post by awesomo on Jan 17, 2019 10:38:42 GMT -5
If we hit the warrant price, will mannkind automatically get some cash? If the stock price gets above 1.60, the holders could exercise, and MNKD would get cash. Mike has a plan, like he said on the conference, he might get the stock back to 1.60 by December, if not, he gets the share count back and can sell those shares at whatever price. So we're good! They could, but they won’t. It is extremely naive to think otherwise. Also, if the share price is not above 1.60 by next December, we are screwed. Getting those shares back is not good at all because the company will be in an even bigger cash crunch and forced to dilute or worse with an even more horrible deal. |
|
|
|
Post by morfu on Jan 17, 2019 12:24:08 GMT -5
If we hit the warrant price, will mannkind automatically get some cash? I believe the ‘investor’ has the option to purchase additional shares at $1.60. They wouldn’t do that unless they thought it would never drop below $1.60 again. Well, I said it before, but this has nothing to do with the open market!
Even with the current share price there is no way, you would be able to buy 27Mil shares under 1.60$! In that regards, I still don't understand any rational for the recent price development..
Let's say someone assumed 2$ to be a fair share price for Mnkd in Mid-December (which makes no sense either, but that`s beside the point) How can a 20% dilution for financial stability -as mad as it is for the management to give that many shares to shorts at this price- lead to a lower company value? the price should have become something like 2$*0.8 + gained value
I can only conclude, the shorts still try to destroy this company and Mike helped them a lot with his Christmas present!
|
|
|
|
Post by awesomo on Jan 17, 2019 13:06:49 GMT -5
I believe the ‘investor’ has the option to purchase additional shares at $1.60. They wouldn’t do that unless they thought it would never drop below $1.60 again. Well, I said it before, but this has nothing to do with the open market!
Even with the current share price there is no way, you would be able to buy 27Mil shares under 1.60$! In that regards, I still don't understand any rational for the recent price development..
Let's say someone assumed 2$ to be a fair share price for Mnkd in Mid-December (which makes no sense either, but that`s beside the point) How can a 20% dilution for financial stability -as mad as it is for the management to give that many shares to shorts at this price- lead to a lower company value? the price should have become something like 2$*0.8 + gained value
I can only conclude, the shorts still try to destroy this company and Mike helped them a lot with his Christmas present!
Stop blaming everything on the shorts. Wall Street is all about perception, any time you do a crappy dilution round with warrants needed for incentive, you're broadcasting a signal of financial/strategic weakness. It doesn't matter how much Mike tries to spin it positive, MannKind is in "prove it" mode for Wall Street, so until actual results start coming in, the market cap will continue to be punished. |
|
|
|
Post by mannmade on Jan 17, 2019 13:18:58 GMT -5
As much as I hate the idea of shorts influencing the price of mnkd they will leave once we have a trend of growing scripts and revenue that is sustainable and consistent with breakeven plus in sight.
That along with a growing pipeline is the future and with it shorts will become history. Until then it’s groundhogs day in mnkd land...
|
|
|
|
Post by mnholdem on Jan 17, 2019 16:37:34 GMT -5
I agree about perception. The Direct Purchase Program is a baby step in terms of image. IR department needs to be totally revamped and be in lock step with marketing.
|
|
|
|
Post by morfu on Jan 17, 2019 18:33:55 GMT -5
Well, I said it before, but this has nothing to do with the open market!
Even with the current share price there is no way, you would be able to buy 27Mil shares under 1.60$! In that regards, I still don't understand any rational for the recent price development..
Let's say someone assumed 2$ to be a fair share price for Mnkd in Mid-December (which makes no sense either, but that`s beside the point) How can a 20% dilution for financial stability -as mad as it is for the management to give that many shares to shorts at this price- lead to a lower company value? the price should have become something like 2$*0.8 + gained value
I can only conclude, the shorts still try to destroy this company and Mike helped them a lot with his Christmas present!
Stop blaming everything on the shorts. Wall Street is all about perception, any time you do a crappy dilution round with warrants needed for incentive, you're broadcasting a signal of financial/strategic weakness. It doesn't matter how much Mike tries to spin it positive, MannKind is in "prove it" mode for Wall Street, so until actual results start coming in, the market cap will continue to be punished. "Stop blaming everything on the shorts." In relative amount this is one of the most shorted stock on this planet! I did not blame any shorts, but I dont pity them either! I did and do, however, blame the management, for doing exactly what you describing just before Christmas, there was no need for that at that time!
|
|
|
|
Post by babaoriley on Jan 17, 2019 19:24:24 GMT -5
Warrants are similar to call options, the only difference being that a warrant issued by the company increased the shares outstanding while call options are traded between third parties and do not affect the share count. As a general rule, no option or warrant is ever exercised until the last day before expiration because as an option the holder enjoys the upside above the strike price, but is protected from any downside. Once an option or warrant is exercised, the holder owns a share of stock which exposes them to both the upside and the downside. Since there is economic value to the downside protection, a warrant holder will wait until the expiration date before exercising. The exception to this rule is when a stock is about to pay a dividend and early exercise will allow the holder to take part in the dividend distribution, but that is not relevant for MNKD and most other small cap stocks. I thought a warrant was when someone was wanted by the law... live and learn. |
|
|
|
Post by babaoriley on Jan 17, 2019 19:33:08 GMT -5
If the stock price gets above 1.60, the holders could exercise, and MNKD would get cash. Mike has a plan, like he said on the conference, he might get the stock back to 1.60 by December, if not, he gets the share count back and can sell those shares at whatever price. So we're good! Also, if the share price is not above 1.60 by next December, we are screwed. Getting those shares back is not good at all because the company will be in an even bigger cash crunch and forced to dilute or worse with an even more horrible deal. Interesting, awesomo. The warrants aren't publicly tradable, are they? So are you saying if the price gets to $2.20 for example, in February, that some warrant holders might not want to exercise at $1.60, sell their resultant shares for $2.20, make a large percentage profit in a short time, be done with MNKD for at least a while, and look around for the next deal? They could always short the number of shares for which they hold warrants at $2.20 (I understand that MNKD stock is known to be shorted from time to time). Am I being extremely naive? It's surely possible I am, of course. |
|
