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Post by uvula on Sept 29, 2021 16:15:12 GMT -5
Why now? I thought this was no longer needed? I guess we aren't expecting royalties any time soon.
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Post by ryster505 on Sept 29, 2021 16:18:42 GMT -5
Why now? I thought this was no longer needed? I guess we aren't expecting royalties any time soon. Why NOT? Cheap money is what it is, and Binder will gladly take it knowing what’s likely coming….Why have a lot of money in the bank when you can have a ton of it? |
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Post by uvula on Sept 29, 2021 16:24:21 GMT -5
I assumed there was a down side to doing this but I don't really know.
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Post by parrerob on Sept 29, 2021 16:27:05 GMT -5
Yes... and looking as a loan (lease back) seems not so chip... another acquisition ? Honestly hope no, but why then? Now with the amount in cash we already have? Pediatric really so expensive?
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Post by awesomo on Sept 29, 2021 16:30:01 GMT -5
I assumed there was a down side to doing this but I don't really know. The downside is that they sold off an asset that they are going to pay $10M a year for potentially 20 years to use. |
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Post by ryster505 on Sept 29, 2021 16:34:25 GMT -5
I assumed there was a down side to doing this but I don't really know. The downside is that they sold off an asset that they are going to pay $10M a year for potentially 20 years to use. Must mean “Mannkind is here to stay”…No?? |
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Post by lazyb767 on Sept 29, 2021 16:49:15 GMT -5
www.marketscreener.com/quote/stock/MANNKIND-CORPORATION-34185045/news/MANNKIND-CORP-Entry-into-a-Material-Definitive-Agreement-Creation-of-a-Direct-Financial-Obligatio-36551761/09/29/2021 | 04:08pm EDT share with twitter share with LinkedIn share with facebook Item 1.01. Entry into a Material Definitive Agreement. On September 23, 2021, MannKind Corporation ("MannKind") entered into a purchase and sale agreement (the "Purchase Agreement") with 1 Casper, LLC (the "Purchaser"), an affiliate of Creative Manufacturing Properties, pursuant to which MannKind agreed to sell certain real estate located at One Casper Street, Danbury, CT (the "Real Property") to the Purchaser for a purchase price of $102.25 million (the "Sale-Leaseback Transaction"), subject to terms and the conditions contained in the Purchase Agreement. The Real Property includes MannKind's manufacturing facility (commonly known as Building 1), which consists of approximately 263,900 square feet, but does not include MannKind's adjacent research and development facility (commonly known as Building 8). The closing of the Sale-Leaseback Transaction is expected to occur no later than November 8, 2021, subject to certain closing conditions, including a due diligence contingency that expired on September 29, 2021. Upon the closing of the Sale-Leaseback Transaction, MannKind and the Purchaser will enter into a lease agreement (the "Lease"), pursuant to which MannKind will lease the Real Property from the Purchaser for an initial term of 20 years, with four renewal options of five years each. The total annual rent under the Lease will start at approximately $9.5 million per year, subject to a 50% rent abatement during the first year of the Lease, and will increase annually by (i) 2.5% in the second through fifth year of the Lease and (ii) 3% in the sixth and each subsequent year of the Lease, including any renewal term. MannKind will also be responsible for payment of operating expenses, property taxes and insurance for the Real Property. The Purchaser will hold a security deposit of $2.0 million during the Lease term. Pursuant to the terms of the Lease, MannKind will have four options to repurchase the Real Property, in 2026, 2031, 2036 and 2041, for the greater of (i) $102.25 million and (ii) the fair market value of the Real Property.
Upon the closing of the Sale-Leaseback Transaction, MannKind and the Purchaser will also enter into a right of first refusal agreement (the "ROFR"), pursuant to which MannKind will have a right to re-purchase the Real Property from the Purchaser in accordance with terms and conditions set forth in the ROFR. Specifically, if the Purchaser receives, and is willing to accept, a bona fide purchase offer for the Real Property from a third party purchaser, MannKind will have certain rights of first refusal to purchase the Real Property on the same material terms as proposed in such bona fide purchase offer. MannKind expects to use the proceeds of the Sale-Leaseback Transaction for working capital and other general corporate purposes, including scale-up of Afrezza commercial activities, additional clinical trials of Afrezza and development of current and future product candidates in its pipeline. MannKind may use a portion of the proceeds from the Sale-Leaseback Transaction to pay down a portion of existing debt or for acquisitions or strategic investments in complementary businesses or technologies, although MannKind does not currently have any plans for any such debt repayment, acquisitions or investments.
The foregoing description of the material terms of the Purchase Agreement is qualified in its entirety by reference to the full text of the Purchase Agreement, a copy of which will be filed as an exhibit to a subsequent filing with the Securities and Exchange Commission ("SEC"). Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information in Item 1.01 above is incorporated by reference into this Item 2.03. Forward-Looking Statements Statements in this report that are not statements of historical fact are forward-looking statements. Words such as "plans," "expects," "intend," "will," "targeted," "potential" and similar expressions are intended to identify forward-looking statements. Forward-looking statements include statements regarding the satisfaction of closing conditions for the Sale-Leaseback Transaction, the entry into the Lease and ROFR and the use of proceeds from the Sale-Leaseback Transaction. These forward-looking statements are based upon MannKind's current expectations. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation risks and uncertainties regarding the satisfaction of closing conditions for the Sale-Leaseback Transaction and MannKind's need to raise additional capital to fund its operations. These and other risks are detailed in MannKind's filings with the SEC, including under the heading "Risk Factors" in MannKind's Quarterly Report on Form 10-Q for the quarter ended June 30, 2021, filed with the SEC on August 11, 2021. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. All forward-looking statements are qualified in their entirety by this cautionary statement, and MannKind undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this report. -------------------------------------------------------------------------------- © Edgar Online, source Glimpses
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Post by boytroy88 on Sept 29, 2021 17:52:17 GMT -5
The interesting question is who is the purchaser? Let the conspiracy theories begin! 😁
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Post by centralcoastinvestor on Sept 29, 2021 17:57:48 GMT -5
The best time to raise money is when you don’t need it. You get the best terms that way.
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Deleted
Deleted Member
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Post by Deleted on Sept 29, 2021 18:02:11 GMT -5
The best time to raise money is when you don’t need it. You get the best terms that way. Also remember Interest Rates are starting to rise which means a DOWNTURN could be on the horizon. Now is the best time to raise cash. They will soon have $360M in the bank which will be helpful in a downturn. |
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Post by mnkdfann on Sept 29, 2021 18:54:28 GMT -5
The interesting question is who is the purchaser? Let the conspiracy theories begin! 😁 It says right there in the document that was posted. 1 Casper, LLC, an affiliate of Creative Manufacturing Properties, Inc. The latter acquires these properties, then tries to find tenants. cmpreit.comcmpreit.com/solutions |
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Post by mnkdfann on Sept 29, 2021 19:01:54 GMT -5
The best time to raise money is when you don’t need it. You get the best terms that way.If those were the best terms, I'd hate to see the worse ones. What I mean, is that for $102.5 million, Mannkind is paying a pretty hefty rent that is set to increase steadily (increases of 2.5% and 3.5% annually in future years) to over 10% per annum (i.e. over 10% of 102.5 million) very quickly. On top of that, the agreement also says that "MannKind will also be responsible for payment of operating expenses, property taxes and insurance for the Real Property." Mannkind really can't borrow money for less than that? |
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Post by sportsrancho on Sept 29, 2021 19:11:04 GMT -5
“You don’t sell your manufacturing plant unless you’re in distress…”
On the surface that’s how it looks, have to see how the market reacts in the morning.
Hopefully there could be any number of positive reasons this was done.
Most of us thought it wouldn’t be needed.
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Post by uvula on Sept 29, 2021 19:12:40 GMT -5
And eventually mnkd needs to buy the building. Kind of like leasing a car and then having to pay full price for it when the lease ends.
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Post by awesomo on Sept 29, 2021 19:15:18 GMT -5
The best time to raise money is when you don’t need it. You get the best terms that way. This is ridiculous, if you don’t need to raise money, you don’t raise money. Do you see profitable companies raising money because they “don’t need to so they get the best terms”? |
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