Post by paul on Aug 11, 2019 10:25:04 GMT -5
This does not seem that complicated. Mike has restructured financing and is only extending debt via the best available financing opportunity that he believes will get the company to break even and beyond. Mannkind obviously believes sufficient revenues will be forthcoming from increasing Afrezza scripts in the U.S., international sales, existing pipeline milestones, new pipeline milestones (that we would know nothing about) and ultimately pipeline revenues. He obviously had to sell the plan to lenders. If he's right, he's made a good decision IMO. It would be great to have more cash and even better to have a quality BP partner but the board apparently doesn't believe now is the time to negotiate such deals having less leverage than Mannkind expects to achieve in the near future. It shouldn't take long to see how this plays out.
>> that he believes will get the company to break even and beyond.
I will remember all these "Mike is so smart" calls next time he chooses to dilute my property by 20%!
I do believe that Mannkind will succeed (on various fronts actually), but I am afraid, that 75mil$ minus escrow might not get us there!
At the same time I repeat my criticism at the dilution 9 months ago, this current loan shows that there were other options and there was no urgent use for that money!
(The conference call just now shows it is just sitting there)
It's not clear to me the extent to which the current loans avoided dilution. I see 2,678,571 shares issued to Deerfield. I see eleven million new shares issued to Mann Group and Bruce Co. I see 1.1 million warrants issued to Midcap. I see forty million in bonds issued to Mann Group and Bruce Co. convertible into 400 and 333 shares per 1000 dollars respectively -- which works out to about 14 and 1.7 million shares respectively. All total is a potential 30 million shares.
It also says that on both of the Mann Group bonds that "MannKind may, at its option, elect to pay any such interest on any interest payment date, if certain conditions are met, in shares of MannKind’s common stock at a price per shall equal to the last reported sale price on the trading day immediately prior to the payment date." That would also contribute to dilution.