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Post by mnholdem on Jun 20, 2019 16:18:12 GMT -5
I've been too busy to pore over this 11th Amendment, but I recall that the last Amendment required MannKind to make the final $10 million payment in cash. I wonder if that stipulation was removed.
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Post by boca1girl on Jun 21, 2019 6:05:58 GMT -5
SO’s latest article suggests that Deerfield provides new debt of $150M expiring 2023-2024. This new debt would pay off all other existing debt (Mann Group and US Bank) and give MNKD $50M to develop the pipeline.
If not Deerfield, I think this is what MNKD is working towards with another lender. I would much prefer debt over more dilution at this point.
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Post by mytakeonit on Jun 21, 2019 6:46:13 GMT -5
Yep boca ... you better buy that hotel now while it's still cheap.
But, that's mytakeonit
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Post by hellodolly on Jun 21, 2019 7:10:23 GMT -5
SO’s latest article suggests that Deerfield provides new debt of $150M expiring 2023-2024. This new debt would pay off all other existing debt (Mann Group and US Bank) and give MNKD $50M to develop the pipeline. If not Deerfield, I think this is what MNKD is working towards with another lender. I would much prefer debt over more dilution at this point. I've been saying it for years here and other sites, this is sounding like the AMD story. They did the same thing. They were heavily diluted and in the 1$ range back in 2012-2013-2014. They knew they had a superior product and were slowly gaining traction in the market (sound familiar). The bashers and pumpers were everywhere and Xbox sales vs. Nintendo sales, which used different chips and cards were watched each week, just like script counts (sounding more familiar). They rolled the debt into one massive structure and made various settlements along the way (starting to become familiar). What SO has written is actually a decent path forward for MNKD. Roll all the debt into one, structure the payments and eliminate any future guesswork out of the bulk of your long term liabilities. Three potential line items into one line item. Accounting will like it.
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Post by harryx1 on Jun 21, 2019 8:16:07 GMT -5
I can dream but I would prefer that Deerfield be out of the picture for good and have UTHR provide a $200 million loan secured by the Danbury plant.
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Post by peppy on Jun 21, 2019 8:20:28 GMT -5
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Post by uvula on Jun 21, 2019 8:31:32 GMT -5
The market cap is $217M. Why would anyone lend mnkd $150-200M?
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Post by Deleted on Jun 21, 2019 9:21:50 GMT -5
The market cap is $217M. Why would anyone lend mnkd $150-200M? You don't judge a company's creditworthiness on their Market Cap. You spread their financials and make a decision. Sales are rising, Balance Sheet has improved tremendously and they are making all of their loan commitments. I believe they are shopping a deal (reason for the 60 day extension) and this time there will be no TOXIC TERMS in the deal. They have earned a clean deal. Now Deerfield may step up and provide the money.....but if not someone else will. I can see $200MM @ 6% w/ Exp. of 2025. Keep it simple - Payoff all parties and have one line item. By then MNKD will be generating enough cash from Afrezza and Royalties. I'm also expecting a partner deal for Afrezza which will bring in less revenue which is the reason for 2025. I don't blame Deerfield with the deal 6 years ago. MNKD was desperate and it was a WIN-WIN for both sides. Deerfield got paid and MNKD avoided bankruptcy which was certain. Also remember this deal was done before Sanofi so MNKD did not have a choice and Deerfield knew this. But all is well now and MNKD is on the right track.
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Post by sportsrancho on Jun 21, 2019 9:34:58 GMT -5
The market cap is $217M. Why would anyone lend mnkd $150-200M? You don't judge a company's creditworthiness on their Market Cap. You spread their financials and make a decision. Sales are rising, Balance Sheet has improved tremendously and they are making all of their loan commitments. I believe they are shopping a deal (reason for the 60 day extension) and this time there will be no TOXIC TERMS in the deal. They have earned a clean deal. Now Deerfield may step up and provide the money.....but if not someone else will. I can see $200MM @ 6% w/ Exp. of 2025. Keep it simple - Payoff all parties and have one line item. By then MNKD will be generating enough cash from Afrezza and Royalties. I'm also expecting a partner deal for Afrezza which will bring in less revenue which is the reason for 2025. I don't blame Deerfield with the deal 6 years ago. MNKD was desperate and it was a WIN-WIN for both sides. Deerfield got paid and MNKD avoided bankruptcy which was certain. Also remember this deal was done before Sanofi so MNKD did not have a choice and Deerfield knew this. But all is well now and MNKD is on the right track. I agree, but I don’t trust your motives. Hence I’ll be watching you closely😁
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Post by uvula on Jun 21, 2019 9:41:34 GMT -5
The market cap is $217M. Why would anyone lend mnkd $150-200M? You don't judge a company's creditworthiness on their Market Cap. You spread their financials and make a decision. Sales are rising, Balance Sheet has improved tremendously and they are making all of their loan commitments. I believe they are shopping a deal (reason for the 60 day extension) and this time there will be no TOXIC TERMS in the deal. They have earned a clean deal. Now Deerfield may step up and provide the money.....but if not someone else will. I can see $200MM @ 6% w/ Exp. of 2025. Keep it simple - Payoff all parties and have one line item. By then MNKD will be generating enough cash from Afrezza and Royalties. I'm also expecting a partner deal for Afrezza which will bring in less revenue which is the reason for 2025. I don't blame Deerfield with the deal 6 years ago. MNKD was desperate and it was a WIN-WIN for both sides. Deerfield got paid and MNKD avoided bankruptcy which was certain. Also remember this deal was done before Sanofi so MNKD did not have a choice and Deerfield knew this. But all is well now and MNKD is on the right track. I don't think this is how reality works. I agree that you don't judge a company's credit worthiness on market cap, but the market cap does affect how much money someone is willing to lend the company. Same as getting a mortgage. If I have excellent credit and want to buy a $200,000 house I can't get a $1M mortgage and use the house as collateral. All the stuff you mentioned about sales rising, etc. is USUALLY factored into the stock price and the market cap. I agree that maybe MNKD is in an unusual position where the market cap does not accurately represent the true PRESENT value of the company. Of course I hope in this case I am wrong and someone does give MNKD $200M. (disclaimer: I am often/usually wrong.)
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Post by prcgorman2 on Jun 21, 2019 9:59:58 GMT -5
Good comments uvula. I think that's the first time I've ever written that. Hopefully it will be the first in a long list. I agree with everything you're using as analogies for loans, but with business there is a certain amount of "blue sky" based on goodwill (an asset on the balance sheet) and expectations about Future Cash Flow (FCF) which is not solely based on past returns and a nearly linear sales trend.
Spencer Osborne's last article (paid by click) was excellent and if you haven't read it I think you may like it, a lot. SO mentioned Deerfield has fairly chunky milestone incentives to the success of Afrezza sales (and TreT royalties?) that may improve MNKD chances of getting the kind of loan we're discussing. It's persuasive.
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Post by rtmd on Jun 21, 2019 10:11:37 GMT -5
You don't judge a company's creditworthiness on their Market Cap. You spread their financials and make a decision. Sales are rising, Balance Sheet has improved tremendously and they are making all of their loan commitments. I believe they are shopping a deal (reason for the 60 day extension) and this time there will be no TOXIC TERMS in the deal. They have earned a clean deal. Now Deerfield may step up and provide the money.....but if not someone else will. I can see $200MM @ 6% w/ Exp. of 2025. Keep it simple - Payoff all parties and have one line item. By then MNKD will be generating enough cash from Afrezza and Royalties. I'm also expecting a partner deal for Afrezza which will bring in less revenue which is the reason for 2025. I don't blame Deerfield with the deal 6 years ago. MNKD was desperate and it was a WIN-WIN for both sides. Deerfield got paid and MNKD avoided bankruptcy which was certain. Also remember this deal was done before Sanofi so MNKD did not have a choice and Deerfield knew this. But all is well now and MNKD is on the right track. I don't think this is how reality works. I agree that you don't judge a company's credit worthiness on market cap, but the market cap does affect how much money someone is willing to lend the company. Same as getting a mortgage. If I have excellent credit and want to buy a $200,000 house I can't get a $1M mortgage and use the house as collateral. All the stuff you mentioned about sales rising, etc. is USUALLY factored into the stock price and the market cap. I agree that maybe MNKD is in an unusual position where the market cap does not accurately represent the true PRESENT value of the company. Of course I hope in this case I am wrong and someone does give MNKD $200M. (disclaimer: I am often/usually wrong.) I agree. The reality is that shareholder equity is a negative 188 million dollars. That's not much in the way of collateral.
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Post by radgray68 on Jun 21, 2019 11:54:25 GMT -5
Now that it's ready for Phase 3, they need time to finalize terms for selling Tre-T outright for $500 million. BOOM!
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Post by mytakeonit on Jun 21, 2019 12:37:02 GMT -5
The market cap is $217M. Why would anyone lend mnkd $150-200M? Because they can. I also believe that Deerfield is MNKD's friend and saved them from dying. A new and huge friend is UT ... maybe someone who peppy won't say are crooks. Ha! BTW, Deerfield crooks are small time if it was only for $4M. And they weren't stealing Afrezza out the back door. Nothing to concern us ... so move along people ... and buy more shares! But, that's mytakeonit
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Post by traderdennis on Jun 21, 2019 13:59:08 GMT -5
The market cap is $217M. Why would anyone lend mnkd $150-200M? Because they can. I also believe that Deerfield is MNKD's friend and saved them from dying. A new and huge friend is UT ... maybe someone who peppy won't say are crooks. Ha! BTW, Deerfield crooks are small time if it was only for $4M. And they weren't stealing Afrezza out the back door. Nothing to concern us ... so move along people ... and buy more shares! But, that's mytakeonit DF did save them by running a pump and dump in October 2017 that created a whole new class of bag holders with a $6+ entry.
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