Post by Deleted on Mar 5, 2021 22:06:27 GMT -5
As the first post in this thread indicates I was struggling with MNKD's lack of a "poison pill" in the case of a hostile bid.
Then 200 million dollars appeared at 2.5% interest for a five year term to be repaid @ $5.21 in cash or shares (at Mannkind's discretion) if at the end of the five years our share price is 130 % of $5.21. We only make 2.5% interest payments on the 200 million for five years!
Now this has really been bothering me!
Who would give our little Mannkind that amount of money at this great rate (almost free) for five years with no collateral?
I was trying to go to sleep and this slipped into my pea brain.
If any company seeks to buy Mannkind in the next five years, (unless they are the benevolent lender) they may find a less than receptive partner that already "own's" 200 million dollars worth of the company. My guess is that same benevolent lender will shortly own MNKD's Danbury facility, that too will be leased back at attractive terms.
There is only one Company that I know of that is about to drop an irrevocable 105 million dollar expedited drug application on FDA's desk in a few short weeks. United Therapeutics. I don't believe Martine leaves much to chance. 105 million for the drug application, 100 million for the manufacturing facility, (Martine already stated Mannkind would initially be the manufacturer and then transition to UTHR) and 200 million dollar "poison pill" money for operations and to acquire bolt on companies that will eventually fit into UTHR / Mannkind.
400 million dollars, I believe this is the beginning of a merger / buyout / partnership (this process could potentially last for five years). I can't see Martine dropping that 105 million dollar drug application with the FDA that relies on a weak Mannkind for success. I also can't see why anyone would give Mannkind 200 million dollars for five year with no collateral at 2.5% interest.
It is the simplest explanation IMHO. All opinions are very welcomed.
First - There were several book makers on this deal so the $200M was spread out amongst institutions clients. So I don't think there is a single owner of the debt.
Second - UTHR's PRV purchase was all about the competition. There are other companies with a pipeline to go against Tyvaso DPI and Martine is protecting her turf. She wants to be the first to market and get stifle any competition.
THIRD - Mannkind has earned this great deal. They have been through 3 rounds of Toxic Financing and Mike has turned the company around and now they are creditworthy. Now if they had gotten a better rate and a longer term then it would be a fantastic deal but that's coming down the line when they have substantial Revenues/Profits and they need the money to expand.
Fourth - I see several partnerships in the making and UTHR could be one of them but the main one is for Afrezza. The problem with Sanofi was they didn't have any skin in the game and had WORLDWIDE RIGHTS to Afrezza. As we know if a deal comes it will be an equity deal. Remember Mike increased the AS.
Fifth - UTHR is already tied to the hip with MKND. UTHR's success is tied to Technosphere and both have a vested interest.
