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Post by oldfishtowner on Mar 2, 2021 10:41:26 GMT -5
From Keltic on ST According to the agreement if the stock price is above $11.99 for 20 of 30 days after 3/6/24 and any time before early Jan/26. Mankind can choose to redeem for cash. That would result in no or little dilution. I'm thinking it should be well above $12 before the beginning of that period. The redemption terms would be totally up to Mannkind, if those conditions are met. Feeling much better about this deal. With Peds, deal with UTHR, RLS, and Vertice along with money to push Afrezza better, they should be well into the green. This is incorrect. What I haven't seen anyone mention is the provision for adjustment of the conversion price. "The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events." Hopefully we will learn what this is when MNKD files the required SEC report, likely on March 4 when the deal is closed or soon thereafter.
Also, even if the conversion rate is not changed, 130% of 5.21 is 6.77 not 11.99 or any other number.
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Post by morfu on Mar 2, 2021 10:51:39 GMT -5
So between $193 million and $222 million in proceeds. Another $100 million from the plant sale/leaseback. MNKD had $67 million cash at the end of December. So we could suddenly be sitting on a war chest of $389 million? Sounds like this is the point where Mike gives himself a big freakin raise, and huge, huge bonuses! Yeah just like the dilution in Dec 2018 was used to maximize the boni for the management in 2018 AND 2019! They were so successful raising cash saving the company.. NOT doing their job and actually finding a decent funding!
This is a double steal of money from the shareholder. .not needed dilution (assuming this company could get credit any other way from a management doing their job!) and as you will learn the goal system set.. they will get maximum boni for "restructuring" the financial situation this year and the solid share situation next year (ignoring that they are the root cause for the problem, jsut like in 2018 and 2019)
Oh and of course they will ask for more shares to hand out soon enough . .
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Post by pat on Mar 2, 2021 10:54:47 GMT -5
Again, cut and paste. I will quit that as I do not have any interest in misleading anyone nor do I know if I am. From here on out I will only cut and paste Baba. All good. Once the terms become known the math should be straight forward. Assume redemption at that level at earliest date, take the payment at that time and spread it across the prior few years to get an effective interest rate. It’ll be high but so what. Beats the heck out of Deerfield or Midcap I imagine. This is all predicated on Mike and co executing successfully. Despite the nonsense I fully expect them too. Anyway. Back to sleep for me, before Cretin starts telling me I’m deluded. |
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Post by longliner on Mar 2, 2021 10:57:36 GMT -5
Sounds like this is the point where Mike gives himself a big freakin raise, and huge, huge bonuses! Yeah just like the dilution in Dec 2018 was used to maximize the boni for the management in 2018 AND 2019! They were so successful raising cash saving the company.. NOT doing their job and actually finding a decent funding!
This is a double steal of money from the shareholder. .not needed dilution (assuming this company could get credit any other way from a management doing their job!) and as you will learn the goal system set.. they will get maximum boni for "restructuring" the financial situation this year and the solid share situation next year (ignoring that they are the root cause for the problem, jsut like in 2018 and 2019)
Oh and of course they will ask for more shares to hand out soon enough . .
Wahhhhhh we're going to be successful.  |
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Post by straightly on Mar 2, 2021 10:58:46 GMT -5
Sounds like this is the point where Mike gives himself a big freakin raise, and huge, huge bonuses! Yeah just like the dilution in Dec 2018 was used to maximize the boni for the management in 2018 AND 2019! They were so successful raising cash saving the company.. NOT doing their job and actually finding a decent funding!
This is a double steal of money from the shareholder. .not needed dilution (assuming this company could get credit any other way from a management doing their job!) and as you will learn the goal system set.. they will get maximum boni for "restructuring" the financial situation this year and the solid share situation next year (ignoring that they are the root cause for the problem, jsut like in 2018 and 2019)
Oh and of course they will ask for more shares to hand out soon enough . .
Are you seriously expecting they work for your interests above their own? As long as they can grow the company, the big cats will get their shares and we are here just for the ride, expecting anything more is unrealistic. |
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Post by awesomo on Mar 2, 2021 11:43:45 GMT -5
Terms are better than expected. Still don't know why the hell they bothered with yesterday's cryptic press release which just provided all the downward momentum on the share price other than for purely self-interest reasons (management). They certainly didn't do shareholders any favors.
I don't like it, but I bought back some shares today...
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Post by MnkdWASmyRtrmntPlan on Mar 2, 2021 12:14:24 GMT -5
Terms are better than expected. Still don't know why the hell they bothered with yesterday's cryptic press release which just provided all the downward momentum on the share price other than for purely self-interest reasons (management). They certainly didn't do shareholders any favors. I don't like it, but I bought back some shares today... Yes, I did, too, Awesomo. We have to do our part to keep bidding the SP back up and make up for the problems that he causes. Remember, us stockholders work at the pleasure of the CEO. |
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Post by castlerockchris on Mar 2, 2021 12:58:49 GMT -5
Terms are better than expected. Still don't know why the hell they bothered with yesterday's cryptic press release which just provided all the downward momentum on the share price other than for purely self-interest reasons (management). They certainly didn't do shareholders any favors. I don't like it, but I bought back some shares today... Yesterday's cryptic message did what those buying the notes would demand the company do prior to investing. There is no way on God's green earth I am giving you free cash (2% interest is nothing - won't even cover inflation), for nothing in return, especially unsecured. Nobody in their right mind would do that. MNKD is not a blue chip stock with assets to cover the debt. What management just pulled off was akin to Wimpy buying his hamburger today with the promise to pay next Tuesday (sorry for the reference that may be too old for some - go watch Popeye). How do you think this benefits management? Yes they keep the company running and collecting their salaries, but that was already in the bag with UTHR revenue about to start, Mid-Cap and the sale of the building. On paper, management lost as much money yesterday as I did. What this move tells me is that management and the board now have the capability to play the long game at favorable rates. The proof will come in how they spend the money. Not taking Mid-Cap's money to the full $70 to 75mm and replacing it with the notes saves roughly $4.65mm in annual interest or nearly half the leaseback on the building. Seems like a good deal to me. I get that now is different than the past and last week everyone was seeing a future $10 stock price, but less than one year ago, if I would have told you I found a group of people willing to give MNKD an unsecured loan worth more than the entirety of the enterprise value of the company, you would have laughed me right off this board. Three years ago I would have gladly taken a dilution of 30% just for the opportunity to stay in business (and we did). Today, someone is offering a strong path to the future, a very promising future, in exchange for the potential of roughly 17% dilution on a much, much bigger enterprise value. Yup, I am taking it. I have not always agreed with how the board and management have run this company, but I think the sale of the building and this raise is a bold, beautiful and excellent move. Added comment - One more thing to consider, the note holders interests are now alined with the shareholders interests. They don't make money unless the stock appreciates. This has not always been the case. |
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Post by morfu on Mar 2, 2021 13:05:22 GMT -5
Terms are better than expected. Still don't know why the hell they bothered with yesterday's cryptic press release which just provided all the downward momentum on the share price other than for purely self-interest reasons (management). They certainly didn't do shareholders any favors. I don't like it, but I bought back some shares today... Actually, you are right, maybe I was too harsh with my critique above!
So the deal is that with cash at hand, selling property and these convertibles, they will have about $300mil cash, but have to pay about $20mil rent and interest per year plus potentially dilute about 10% of the stock in 2026 for $5 or so (which seems unlikely if the share price increases then, since they seem to be allowed to take another loan/sell stock or whatever to pay off the debt).
That seems an odd justification for trying to pin the stock price below 4$!? And no, the shorts do not know more than us, they just doing it wrong!
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Post by awesomo on Mar 2, 2021 13:16:57 GMT -5
Terms are better than expected. Still don't know why the hell they bothered with yesterday's cryptic press release which just provided all the downward momentum on the share price other than for purely self-interest reasons (management). They certainly didn't do shareholders any favors. I don't like it, but I bought back some shares today... Yesterday's cryptic message did what those buying the notes would demand the company do prior to investing. There is no way on God's green earth I am giving you free cash (2% interest is nothing - won't even cover inflation), for nothing in return, especially unsecured. Nobody in their right mind would do that. MNKD is not a blue chip stock with assets to cover the debt. What management just pulled off was akin to Wimpy buying his hamburger today with the promise to pay next Tuesday (sorry for the reference that may be too old for some - go watch Popeye). How do you think this benefits management? Yes they keep the company running and collecting their salaries, but that was already in the bag with UTHR revenue about to start, Mid-Cap and the sale of the building. On paper, management lost as much money yesterday as I did. What this move tells me is that management and the board now have the capability to play the long game at favorable rates. The proof will come in how they spend the money. Not taking Mid-Cap's money to the full $70 to 75mm and replacing it with the notes saves roughly $4.65mm in annual interest or nearly half the leaseback on the building. Seems like a good deal to me. I get that now is different than the past and last week everyone was seeing a future $10 stock price, but less than one year ago, if I would have told you I found a group of people willing to give MNKD an unsecured loan worth more than the entirety of the enterprise value of the company, you would have laughed me right off this board. Three years ago I would have gladly taken a dilution of 30% just for the opportunity to stay in business (and we did). Today, someone is offering a strong path to the future, a very promising future, in exchange for the potential of roughly 17% dilution on a much, much bigger enterprise value. Yup, I am taking it. I have not always agreed with how the board and management have run this company, but I think the sale of the building and this raise is a bold, beautiful and excellent move. Added comment - One more thing to consider, the note holders interests are now alined with the shareholders interests. They don't make money unless the stock appreciates. This has not always been the case. What's the point of announcing it with no details a day before announcing the details? Discuss the details behind closed doors and then announce it. What's in it for management? Perhaps some of their convoluted bonus structure is tied to raising money at a premium to share price. Notice how today they "brag" in the press release about the "premium of approximately 30% over the last reported sale of $4.01 per share" after yesterday's 30% massacre. That's certainly a claim they couldn't make if the share price was above $5.31 like it has been for the past few weeks. |
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Post by apidistra on Mar 2, 2021 13:45:23 GMT -5
At first look, the terms are far better than I feared. But I believe a lot of the commentary on the terms here is either incorrect or misleading. The holders have about a 4 month window to convert with no restrictions beginning Dec 1, 2025, and the maturity date. So if the stock is at $10, they convert at $5.21 and either then hold or sell the stock they received. Maybe mnkd has the option to pay them in cash, I’m not clear on that, but if so, they will be paying them $10 per share times the number of shares they could have bought had they converted their bond to stock. $200 million - staggering. But it does speak highly for what these obviously (hopefully) sophisticated investors think of Mnkd’s future. I would say that the size of this price drop is not warranted. It's totally awesome for the company! |
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Post by mytakeonit on Mar 2, 2021 13:46:28 GMT -5
From Clan on ST ANYONE spreading notion of debt conversion to shares is ignorant or lying. Around 2026, MNKD, at its election, decides how called/due debt gets repaid. The debt holder does NOT decide. So, If $MNKD trades at $15/sh, debt holders will be repaid $5.21 for every $5.21 lent; not $15; not a share of MNKD. UTHR royalties will be flowing in and the ability to rollover any unpaid debt will be easy in 2026. So, No dilution. "Conversion" means nothing (as long as you believe MNKD w/b trading north of ~$6/sh in 5 yrs). There you go ... someone with a brain !!! And yes liane, I had to post for this one ... But, that's mytakeonit |
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Post by castlerockchris on Mar 2, 2021 13:53:02 GMT -5
For those who think this raise was done to pump up the value of management bonuses... Not sure why I'm poking the bear here, but come on, really? MC owns 1,117,560 shares of MNKD stock, plus his future options/restricted shares. So people on this board are saying he would make a move that would negatively impact the value of his current shares by more than $2mm so he could juice his bonus? Hint, his 2019 bonus was 285K. |
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Post by longliner on Mar 2, 2021 14:04:06 GMT -5
It's really surprising with this horrible news that we haven't had downgrades from...$6.50, 7.50 & 8.00.   What do you think folks will our next call be an upgrade or downgrade?  I still don't know where Nate came up with the land of great despair from?  Bad Mikey, bad....I hate making money!  |
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Post by awesomo on Mar 2, 2021 14:06:24 GMT -5
For those who think this raise was done to pump up the value of management bonuses... Not sure why I'm poking the bear here, but come on, really? MC owns 1,117,560 shares of MNKD stock, plus his future options/restricted shares. So people on this board are saying he would make a move that would negatively impact the value of his current shares by more than $2mm so he could juice his bonus? Hint, his 2019 bonus was 285K. Not the raise, jesus. The way they announced it. |
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