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Post by Clement on Dec 23, 2019 8:12:29 GMT -5
In another thread seven hours ago, Lefty posted: "Eighteen MannKind sales jobs listed plus one for a controller." recruiting.ultipro.com/MAN1011MANNK/JobBoard/45620aa7-5bd2-45d7-8276-16f0fffe7771/?q=&o=postedDateDesc Read more: mnkd.proboards.com/thread/10731/sales-team#ixzz68w1yZDtKI'm guessing this money from CVI today will go toward the sales force. And spending money on sales will produce enough Afrezza revenue to be damn sure that we meet future MidCap covenants, regardless of what it does to cash flow and profitability. A new rep often takes 6 to 12 months to get the ball rolling. |
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Post by barnstormer on Dec 23, 2019 8:25:55 GMT -5
This action to me displays Castagna's total disreagard for shareholders no matter what he says in his New York presentations. He has stated several times that MNKD is now on a strong footing, so why give CVI a discount with an extension? He obviously doesn't think the share price will be over $1.60 in June or he wouldn't have pulled this second December asault on shareholders. Let's see what lavish recognition event he spends some of this cash on to reward his team for another year of poor performance.
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Post by barnstormer on Dec 23, 2019 8:30:01 GMT -5
This was not negotiated just Friday. It has been in the works and presumably when the share price was at 1.31. They are not telegraphing anything so people stop making BS up. You can post that on ST! So give us a reasonable explination if you've got one. We really don't care when it was negotiated. It should have been based on market price the day of the transaction. Anyone with savy should have made that a term of the agreement to support the extension. |
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Post by golfeveryday on Dec 23, 2019 8:33:16 GMT -5
In another thread seven hours ago, Lefty posted: "Eighteen MannKind sales jobs listed plus one for a controller." recruiting.ultipro.com/MAN1011MANNK/JobBoard/45620aa7-5bd2-45d7-8276-16f0fffe7771/?q=&o=postedDateDesc Read more: mnkd.proboards.com/thread/10731/sales-team#ixzz68w1yZDtKI'm guessing this money from CVI today will go toward the sales force. And spending money on sales will produce enough Afrezza revenue to be damn sure that we meet future MidCap covenants, regardless of what it does to cash flow and profitability. putting more money into the sales team is idiotic and he knows it. It’s too expensive and they don’t have the Patient retention metrics to warrant (pun intended) adding to the sales team. MC is playing the game until UTHR can get to their 2nd molecule and/or launch TrepT. It’s about time he start letting shareholders have at least a glimpse of the go forward plan because everyone is in the dark, including Wall Street, who clearly doesn’t trust him. |
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Post by rfogel on Dec 23, 2019 8:37:10 GMT -5
Management really should have issued a PR announcing the deal and explaining it before filing the 8-K. Leaving investors to discover it via the filing looks like they were trying to hide it in some fashion.
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Post by apidistra on Dec 23, 2019 8:56:36 GMT -5
How does the company benefit from this?
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Post by barnstormer on Dec 23, 2019 9:04:30 GMT -5
How does the company benefit from this? Management Payroll Security. |
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Post by neil36 on Dec 23, 2019 9:23:00 GMT -5
How does the company benefit from this? Management Payroll Security. $1.31 x 4.5 million shares = $5.9 million received today. Would be interesting to see how that number compares with the total for Christmas bonuses sent out this year |
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Post by matt on Dec 23, 2019 9:32:05 GMT -5
ST.... $MNKD So, am I misunderstanding this or did MNKD just give the shorts another window by telling the Street that the stock is only worth $1.31, possibly for anther 6 months. This is the equivalent of selling those shares into the market, but since warrant exercise doesn't generally incur a second investment banking fee placement (typically about 7%) and there is a lot less legal paperwork involved, it is less expensive. Whether the company needed the money that badly is another discussion. Certainly the optics of repricing the warrants as they are about to expire is not favorable. As I mentioned in another thread last week, any time a company sells securities for less than the current market price the market tends to respond by discounting all outstanding shares to the same level. It is still pre-market as I write this, but as of this moment the stock is trading down 6 cents. In other words, the company just imposed a $12.4 value loss on the shareholders to raise $5.9 million in cash, and put a price ceiling on the stock until the new expiration date in June. I leave it to you to opine on whether that was a prudent move or not. |
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Post by thekid2499 on Dec 23, 2019 9:32:25 GMT -5
So, does this mean that 4,500,000 can be prchased by CVI immediately (or they can wait until ,June 30, 2020) if preferred) for $1.311. What is that going to do to the share price? What about the rest of the shares - they go back to MNKD on Dec. 26 if not exercised at $1.60? Why did they do this - what am I not understanding here? I would need to read the agreement, but based on the excerpt above it's an end of year special  The warrants, all 11M, get extended until June 26th *if* CVI exercise 4.5M of them immediately (the Dec 26 deadline) at $1.311 rather than the issued $1.60 exercise price. It's not clear if the price of those remaining warrants is reduced to $1.311 or remains at $1.60 - I would need to read the agreement but I suspect it will remain at $1.60. What does this mean? My read is that; - they are hedging their MidCap position. They just paid CVI $310k + the value of the warrants to agree to extend the warrants until the end of June. If things go off the rails with MidCap this will provide an immediate chance to offload the remaining 6.5M warrants for cash, - and it's corollary, keeping CVI sweet so they can go back to that particular well if necessary. If things remain good with MidCap then the warrants will probably never get exercised., - they don't expect the price to be over $1.60 before tranche 2 or they would have used the ATM instead, - Mike is going to be asking for a lot more shares in the not to distant future - the shorts feel a lot safer. Aged - I think you nailed this one from a reasoning perspective. And it really depresses me. We have all been saying (including Nate) that certainty around the warrants, whether they were exercised or not, would be good for the stock. Now they just introduced another 6 months of uncertainty for 5 to 6 million dollars now. I've been invested and haven't sold a share in ~7 years. But even I'm losing my patience. It's a perpetual hamster wheel and this lays the foundation for 2020 being another stuck in the mud year for the stock. Hope I'm wrong. |
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Post by apidistra on Dec 23, 2019 9:33:29 GMT -5
How does the company benefit from this? Management Payroll Security. Let's not be facetious. I'm at a loss to explain it! Unless it is tied to the Midcap renegotiation. ? ? ? Is the loss of $1.3M (if 4.5M warrants are exercised this week) the cost of the relaxation in targets? ? ? Is that far-fetched? |
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Post by centralcoastinvestor on Dec 23, 2019 9:40:03 GMT -5
I rarely express frustration with MannKind and Mike Castagna as I know how hard it has been to save the company and sell Afrezza. However, the optics on this isn’t good. Why make the deal to raise a minor amount of funding like $5.9 million for the overall message it sends to the market. Why not let all of the warrants expire now and send the message that you don’t need the money. The stock price bounces and then maybe go back to the well in the next several months after the share price has appreciated. I was counting on the warrants to expire so I am not a happy camper this morning.
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Post by cjm18 on Dec 23, 2019 9:43:48 GMT -5
In the past I believe we paid cash to settle these types of warrants. Basically we played nice with the other party back then and are doing it again. Is it to keep them happy?
Clearly this isn’t enough cash to make much difference. But it might just be so they would let us extend the warrants another 6 months?
FWIW sounds like mannkind really wanted those warrants to be exercised at 1.60. And that’s bearish.
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Post by markado on Dec 23, 2019 9:51:41 GMT -5
Not happy, here, either. Mike definitively said a couple of months ago, we didn't need the money and would prefer the warrants not be exercised at the $1.60 price. Actions speak louder than words and this is a major backpeddle, on his judgement, and on SP momentum, for minor cash benefit. That said, if this is used to finance the sales team expansion to accelerate sales, then maybe it will prove out...in six months...
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Post by cedafuntennis on Dec 23, 2019 9:52:50 GMT -5
I really do not understand this CEO and CFO team. Typically, a company issuing warrants will raise its image because it will reflect the confidence of investor(s) in the company, who agree to purchase shares of the company at a price that is higher than the current market price. It has baffled me why MannKind CEO Michael Castagna offers these sweetheart deals, issuing warrants that are lower that the market share price. In my opinion, this amendment is NOT in the interests of shareholders and the CEO's action will depress the market price for MNKD shares and erode shareholder value and may even constitute a breach of fiduciary duty to shareholders. Agreed. Extremely disappointed with MC on this. Not the first time he's done that. While I was against him being booted, now I say he has to go. This lack of transparency to it's shareholder's to say the least and such poor decisions in handling warrants and deals on general must not be rewarded any further. I'll vote for the new board members with all my 80k shares. |
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