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Post by wyattdog on Dec 18, 2019 16:20:25 GMT -5
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Post by awesomo on Dec 18, 2019 16:29:37 GMT -5
On first glance, they cut the minimum Afrezza net revenue by quite a bit starting November 30, 2019...
Old schedule: Jan 31, 2020 -> $28,000,000
New schedule: Jan 31, 2020 -> $23,994,000
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Post by sportsrancho on Dec 18, 2019 16:30:06 GMT -5
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Post by rfogel on Dec 18, 2019 16:43:58 GMT -5
I don't quite get the "Tranche 3 Afrezza Net Revenue Schedule" -- so that is what they have to meet to get the 3rd tranche? Why is it different from the "MINIMUM AFREZZA NET REVENUE SCHEDULE"?
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Post by theebavarian on Dec 18, 2019 16:44:17 GMT -5
Nice. Looks like a good relationship between MannKind and Midcap.
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Post by brotherm1 on Dec 18, 2019 16:46:46 GMT -5
“following:
“Applicable Funding Conditions: means the following:
(a) (x) Agent has received evidence satisfactory to it, in its discretion, that United Therapeutics has received positive clinical data on the Phase 1b BREEZE trial and (y) Agent has received evidence satisfactory to it (in its discretion) that United Therapeutics definitively intends promptly to file or has filed Treprostinil Technosphere for approval by Food and Drug Administration of the United States of America for the treatment of Pulmonary Arterial Hypertension;
(b) Agent has received, on or after the Commitment Commencement Date, evidence reasonably satisfactory to it that Afrezza Net Revenue for the preceding twelve (12) calendar months ending on the last day of the month (commencing with July, 2020) for which Borrower delivered (or was required to deliver pursuant to Section 6.2(b) hereof) a Compliance Certificate (the “Tranche 3 Testing Date”) is greater than or equal to the amount set forth on the Tranche 3 Afrezza Net Revenue Schedule opposite the applicable Tranche 3 Testing Date;
(c) (x) Agent has received evidence satisfactory to it (in its discretion) that Borrower has received the full amount of all Milestone Payments (as defined in the United Therapeutics License as of the Closing Date) under the United Therapeutics License and (y) immediately prior to and after giving effect to the funding of the Credit Extension under this Credit Facility #3, Borrower is not in breach or violation (nor has United Therapeutics asserted any such breach or violation by Borrower) of the United Therapeutics License Agreement and United Therapeutics shall not have delivered any termination notice pursuant to Section 12.3 of the United Therapeutics License; and
(b) The Minimum Afrezza Net Revenue Schedule attached to the Original Credit Agreement is hereby deleted and replaced in its entirety with the Minimum Afrezza Net Revenue Schedule attached as Schedule 1 to this Agreement.”
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form 8-k
Dec 18, 2019 16:54:48 GMT -5
via mobile
Post by figglebird on Dec 18, 2019 16:54:48 GMT -5
Could anyone comment on any substantial differences the ammendment pertains regarding UTHR trep t and so forth - what do the differences in wording indicate or suggest?
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Post by apidistra on Dec 18, 2019 16:55:27 GMT -5
On first read through, I thought it appears that revenue requirements are eased and exit fee is increased. But I may be misunderstanding what I'm reading. Can that be all there is?
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Post by Chris-C on Dec 18, 2019 16:58:54 GMT -5
On first read through, I thought it appears that revenue requirements are eased and exit fee is increased. But I may be misunderstanding what I'm reading. Can that be all there is? That's what I picked up on what I admit was a rapid review of the filing. Perhaps there are some less obvious points that others will catch. This will probably be interpreted by The Street as another excuse for marching the already beaten SP lower. It's a way of life with this stock. Chris C |
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Post by mango on Dec 18, 2019 17:00:25 GMT -5
“following: “Applicable Funding Conditions: means the following: (a) (x) Agent has received evidence satisfactory to it, in its discretion, that United Therapeutics has received positive clinical data on the Phase 1b BREEZE trial and (y) Agent has received evidence satisfactory to it (in its discretion) that United Therapeutics definitively intends promptly to file or has filed Treprostinil Technosphere for approval by Food and Drug Administration of the United States of America for the treatment of Pulmonary Arterial Hypertension; (b) Agent has received, on or after the Commitment Commencement Date, evidence reasonably satisfactory to it that Afrezza Net Revenue for the preceding twelve (12) calendar months ending on the last day of the month (commencing with July, 2020) for which Borrower delivered (or was required to deliver pursuant to Section 6.2(b) hereof) a Compliance Certificate (the “Tranche 3 Testing Date”) is greater than or equal to the amount set forth on the Tranche 3 Afrezza Net Revenue Schedule opposite the applicable Tranche 3 Testing Date; (c) (x) Agent has received evidence satisfactory to it (in its discretion) that Borrower has received the full amount of all Milestone Payments (as defined in the United Therapeutics License as of the Closing Date) under the United Therapeutics License and (y) immediately prior to and after giving effect to the funding of the Credit Extension under this Credit Facility #3, Borrower is not in breach or violation (nor has United Therapeutics asserted any such breach or violation by Borrower) of the United Therapeutics License Agreement and United Therapeutics shall not have delivered any termination notice pursuant to Section 12.3 of the United Therapeutics License; and (b) The Minimum Afrezza Net Revenue Schedule attached to the Original Credit Agreement is hereby deleted and replaced in its entirety with the Minimum Afrezza Net Revenue Schedule attached as Schedule 1 to this Agreement.” Does this mean the TreT clinical trials have been successful and completed and UT is or will very soon file with FDA for approval? |
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Post by apidistra on Dec 18, 2019 17:05:31 GMT -5
On first read through, I thought it appears that revenue requirements are eased and exit fee is increased. But I may be misunderstanding what I'm reading. Can that be all there is? That's what I picked up on what I admit was a rapid review of the filing. Perhaps there are some less obvious points that others will catch. This will probably be interpreted by The Street as another excuse for marching the already beaten SP lower. It's a way of life with this stock. Chris C And if that is the case, the reason for leniency and a 0.25% additional back-end would not be that revenue goals can't be met, but that the $1.11 warrants will be far more valuable for the lender once certain events happen. In other words, trading shorter-term for much bigger upside later. One would guess, no? |
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Post by ktim on Dec 18, 2019 18:11:54 GMT -5
Overall seems fair and that MidCap is not in turn screw mode. Seems it's setting MNKD up to get 2nd tranche but not 3rd and keep interest rate where it is by dramatically loosening the basic covenants but adding ones for tranche 3 that are even more unrealistic. And MidCap gets a bit of sweetner on exit rate.
That's my 2 min read on it. Unfortunately don't have time to read every word.
At least it seems to add near term clarity. Would need much more time than I have now to look at cash flow in light of this and see what it does for probability/timing of an upcoming round of dilutive funding. This would seem to improve the near term situation.
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Post by letitride on Dec 18, 2019 18:58:35 GMT -5
Looks to me like UTHR is all in and Midcap wants to make sure they are to.
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Post by golfeveryday on Dec 18, 2019 19:12:10 GMT -5
Looks to me like UTHR is all in and Midcap wants to make sure they are to. agree with letitride |
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Post by apidistra on Dec 18, 2019 19:16:40 GMT -5
Looks to me like UTHR is all in and Midcap wants to make sure they are to. agree with letitride Yes, agreed |
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