MannKind Receives Forgivable Loan under the Paycheck Protect
Apr 15, 2020 7:01:55 GMT -5
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Post by kite on Apr 15, 2020 7:01:55 GMT -5
www.globenewswire.com/news-release/2020/04/15/2016389/0/en/MannKind-Receives-Forgivable-Loan-under-the-Paycheck-Protection-Program.html
Investor call today at 4:30 pm ET to discuss operational update and cost-saving measures being implemented
$4.9 million forgivable loan received
Pay temporarily reduced by 20% for certain employees
WESTLAKE VILLAGE, Calif., April 15, 2020 (GLOBE NEWSWIRE) -- MannKind Corporation (NASDAQ:MNKD) today announced that it received a loan of approximately $4.9 million from JPMorgan Chase Bank, N.A., as lender, pursuant to the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) on April 10, 2020. The PPP loan matures on April 9, 2022 and bears interest at a rate of 0.98% per annum. Payments of principal and interest commence in November 2020. The PPP loan may be prepaid by MannKind at any time prior to maturity with no prepayment penalties.
All or a portion of the PPP loan may be forgiven by the U.S. Small Business Administration (“SBA”) upon application by MannKind beginning 60 days but not later than 120 days after loan approval and upon documentation of expenditures in accordance with the SBA requirements. Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, covered rent payments, covered mortgage interest and covered utilities during the eight week period beginning on the date of loan approval. For purposes of the CARES Act, payroll costs exclude compensation of an individual employee in excess of $100,000, prorated annually. Not more than 25% of the forgiven amount may be for non-payroll costs. Forgiveness is reduced if full-time headcount declines, or if salaries and wages for employees with salaries of $100,000 or less annually are reduced by more than 25%. In the event the PPP loan, or any portion thereof, is forgiven pursuant to the PPP, the amount forgiven is applied to outstanding principal.
MannKind intends to use all proceeds from the PPP Loan to retain employees, maintain payroll and make lease, mortgage interest and utility payments.
MannKind also announced that effective April 27, 2020 (the beginning of the next payroll cycle), it will implement a 20% pay reduction for certain employees whose payroll costs exceed $100,000, including executive officers. MannKind expects to maintain this reduction for at least 10 weeks. The company does not intend to reduce pay for employees whose payroll costs are below $100,000.
Investor call today at 4:30 pm ET to discuss operational update and cost-saving measures being implemented
$4.9 million forgivable loan received
Pay temporarily reduced by 20% for certain employees
WESTLAKE VILLAGE, Calif., April 15, 2020 (GLOBE NEWSWIRE) -- MannKind Corporation (NASDAQ:MNKD) today announced that it received a loan of approximately $4.9 million from JPMorgan Chase Bank, N.A., as lender, pursuant to the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) on April 10, 2020. The PPP loan matures on April 9, 2022 and bears interest at a rate of 0.98% per annum. Payments of principal and interest commence in November 2020. The PPP loan may be prepaid by MannKind at any time prior to maturity with no prepayment penalties.
All or a portion of the PPP loan may be forgiven by the U.S. Small Business Administration (“SBA”) upon application by MannKind beginning 60 days but not later than 120 days after loan approval and upon documentation of expenditures in accordance with the SBA requirements. Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, covered rent payments, covered mortgage interest and covered utilities during the eight week period beginning on the date of loan approval. For purposes of the CARES Act, payroll costs exclude compensation of an individual employee in excess of $100,000, prorated annually. Not more than 25% of the forgiven amount may be for non-payroll costs. Forgiveness is reduced if full-time headcount declines, or if salaries and wages for employees with salaries of $100,000 or less annually are reduced by more than 25%. In the event the PPP loan, or any portion thereof, is forgiven pursuant to the PPP, the amount forgiven is applied to outstanding principal.
MannKind intends to use all proceeds from the PPP Loan to retain employees, maintain payroll and make lease, mortgage interest and utility payments.
MannKind also announced that effective April 27, 2020 (the beginning of the next payroll cycle), it will implement a 20% pay reduction for certain employees whose payroll costs exceed $100,000, including executive officers. MannKind expects to maintain this reduction for at least 10 weeks. The company does not intend to reduce pay for employees whose payroll costs are below $100,000.
And we are not talking about sports glass house.
