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Post by figglebird on Jul 18, 2019 10:12:25 GMT -5
Deerfield has all say on this matter with a couple exceptions... but for the record, until debt is paid off fully...
1. DF has elected to ALWAYS take shares in lieu of cash(read the facility agreement)
2.But if mnkd were to once elect to pay cash ALL DEBT would come due immeadiately and must be paid in full in cash(this applies to most if not all tranches but not sure) - at df's disgression... they could give a break and likely have which is where some confusion may lie.
3. Again it is df's call until settled.
4. This is the nature of the game and what keeps us solvent - it is minimal
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Post by jred on Jul 18, 2019 10:17:20 GMT -5
Was that a thank you present to Deerfield? The warrants are a mile out of the money, but Mannkind is going to pay $0.13 each for them? At this point it is by no means clear they will be exercised, but those warrants would have raised $5.6M if exercised.
Thank you present? We are all frustrated with a $1.04 SP and lack of scripts growth, but this wasn't a bad move by MNKD. First off $.13 is a fair price for the warrants - just look at the market quotes for the Nov 2019 and Jan 2020 options. And yes, if the stock is above $1.60 in Dec, MNKD would get the $5.6M if exercised, but they can still sell those shares through the ATM. And if the stock is indeed over $1.60, they would collect the full share price and not be stopped out at 1.60.
I'm not predicting a Dec price above 1.60 (am hoping though ) or that MNKD got the better of this agreement, but it was equitable for both sides.
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Post by apidistra on Jul 18, 2019 10:20:27 GMT -5
I see this as a totally positive move. Using shares that are now cheap (but potentially far more valuable) rather than cash which is for the moment more valuable in relative terms seems to me a great way to retire debt and keep a partner (DF is, in a way) close and tied to success.
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Post by awesomo on Jul 18, 2019 10:26:17 GMT -5
I see this as a totally positive move. Using shares that are now cheap (but potentially far more valuable) rather than cash which is for the moment more valuable in relative terms seems to me a great way to retire debt and keep a partner (DF is, in a way) close and tied to success. Umm no, we just got diluted more than if the repayment had been done at a higher share price. Deerfield doesn’t hold onto shares, they have no care for the long term success of the company. They’ve been shorting this whole time.
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Post by apidistra on Jul 18, 2019 10:32:36 GMT -5
Your assumptions as to motives and backstory as well as what you ultimately hope to gain from your investment differ, I think, rather a great deal from mine. Time will tell.
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Post by lifebreath on Jul 18, 2019 10:34:45 GMT -5
I see this as a totally positive move. Using shares that are now cheap (but potentially far more valuable) rather than cash which is for the moment more valuable in relative terms seems to me a great way to retire debt and keep a partner (DF is, in a way) close and tied to success. Umm no, we just got diluted more than if the repayment had been done at a higher share price. Deerfield doesn’t hold onto shares, they have no care for the long term success of the company. They’ve been shorting this whole time. And today they can suppress the sp selling their new shares at a small profit while they simultaneously cover the short position
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Post by awesomo on Jul 18, 2019 10:50:46 GMT -5
Your assumptions as to motives and backstory as well as what you ultimately hope to gain from your investment differ, I think, rather a great deal from mine. Time will tell. There's no argument here. With the share price being lower than before, MannKind had to issue more shares to pay the same amount. That's the whole issue. All this talk about motives and expectations is worthless.
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Post by apidistra on Jul 18, 2019 11:08:59 GMT -5
I don't think they are worthless. An investment means different things to different people.
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Post by celo on Jul 18, 2019 11:23:48 GMT -5
The share price is perfectly aligned with Deerfield shorting the stock into receiving shares. The share price bottomed at 1.04 where it was shorted down. Deerfield will now cover after receiving it's shares at a low price. Deerfield gone is a good thing.
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Post by rtmd on Jul 18, 2019 11:38:43 GMT -5
How much is still due at the end of August?
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Deleted Member
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Post by Deleted on Jul 18, 2019 11:58:48 GMT -5
How much is still due at the end of August? $5MM which is in Escrow. IMO MNKD is working on a total RECAP which will payoff DF and everyone else and add more capital w/ much better terms and a due date of 2025. I'm expecting a rate of 5.25%.
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Post by jred on Jul 18, 2019 12:02:36 GMT -5
I recently received an email from a shareholder asking me if the recent Deerfield Amendments, allowing MannKind to pay down debt with shares, was contingent upon Michael Castagna remaining CEO of MannKind Corporation. I remember this discussion appeared on ProBoards, possibly in late 2018. Does anybody have a definitive answer to this question? I’m so swamped at work that I do not have time time to peruse through SEC filings. I believe that the shareholder may be implying that the extended debt also extended Deerfield’s protection of the current CEO.
It allowed Mannkind to extend a Tranche principal payment of $10million from 8/31/2017 to 10/31/17 and to keep $10 million in cash at the end of the 10/17 and 12/17 quarters instead of $25 million. Deerfield agreed to the deferment if Mannkind met a number of conditions - one of which was MC stay on as CEO. I can't say for sure that this condition wasn't rolled into future amendments, but I don't see it.
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Post by traderdennis on Jul 18, 2019 12:06:59 GMT -5
How much is still due at the end of August? $5MM which is in Escrow. IMO MNKD is working on a total RECAP which will payoff DF and everyone else and add more capital w/ much better terms and a due date of 2025. I'm expecting a rate of 5.25%. Doubtful. SO and Matt are expecting a round of toxic debt which I agree with them. No reason in todays condition that MNKD can get market financing.
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Post by awesomo on Jul 18, 2019 12:16:48 GMT -5
$5MM which is in Escrow. IMO MNKD is working on a total RECAP which will payoff DF and everyone else and add more capital w/ much better terms and a due date of 2025. I'm expecting a rate of 5.25%. Doubtful. SO and Matt are expecting a round of toxic debt which I agree with them. No reason in todays condition that MNKD can get market financing. Mike is certainly skilled at financing at the bottom, December for the overall market, and now this for the share price.
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Post by wgreystone on Jul 18, 2019 12:18:29 GMT -5
What genius would sell shares at $1.04? The SP has been above this price for hundreds of days. Where is the ATM facility?
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