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Post by bthomas55ep on Apr 3, 2024 5:15:11 GMT -5
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Post by hellodolly on Apr 3, 2024 5:44:42 GMT -5
Very good news. I was actually expecting something more on CIPLA but, I'm perfectly fine with this news, too. Seemed like we have been in bed with Midcap for sooooooo long. Well, sooooooo long Midcap!
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Post by stockwhisperer on Apr 3, 2024 6:42:25 GMT -5
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Post by Clement on Apr 3, 2024 6:58:25 GMT -5
"Credit and security agreement with MidCap Financial Trust repaid in full for approximately $31.6 million Convertible note issued to Mann Group LLC repaid in exchange for 1.5 million shares of common stock and approximately $8.9 million Total debt reduced since December 31, 2023 is approximately $41.8 million" finance.yahoo.com/news/mannkind-repays-certain-debt-obligations-100000865.html“Repaying the MidCap loan agreement eliminates our most expensive debt going forward and releases our assets from their security interests,” said Michael Castagna, PharmD, Chief Executive Officer of MannKind Corporation. “In addition, we believe that our stock price is currently undervalued, so we took the opportunity to repay the Mann Group debt through a partial conversion that is expected to reduce future potential dilution by over two million shares.” |
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Post by neil36 on Apr 3, 2024 7:34:19 GMT -5
From the 10-k:
The Company’s obligations under the MidCap credit facility are secured by a security interest on substantially all of its assets, including intellectual property. The MidCap credit facility, as amended, contains customary affirmative covenants and customary negative covenants limiting the Company’s ability and the ability of the Company’s subsidiaries to, among other things, dispose of assets, undergo a change in control, merge or consolidate, make acquisitions, incur debt, incur liens, pay dividends, repurchase stock and make investments, in each case subject to certain exceptions. The Company must also comply with a financial covenant relating to trailing twelve month minimum Afrezza net revenue, tested on a monthly basis, unless the Company has $90.0 million or more of unrestricted cash and short-term investments.
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Post by dh4mizzou on Apr 3, 2024 7:49:49 GMT -5
So that 1.5 million shares to the Mann Group LLC were dilutive? Kind of explains the last few days maybe?
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Post by kc on Apr 3, 2024 7:54:39 GMT -5
Looks to be a great move on the part of the company. They keep working to get their house in order..
makes it easier to give the keys to the next owner 😉
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Post by Clement on Apr 3, 2024 8:21:49 GMT -5
$302M of cash and cash equivalents and investments at December 31, 2023
So, after closing out all debt to MidCap and Mann Group, MNKD still has about $260M in cash and cash equivalents and investments (less whatever net cash was spent in Q4).
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Post by caesar on Apr 3, 2024 8:25:35 GMT -5
It's all part of the long-term strategic plan initiated shortly after Sanofi "bugged" out. Step at a time - looking forward to all of the pieces falling into place.
Events leading up to an in 2025/2026 will reward all shareholders - not so much the naysayers.
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Post by alethea on Apr 3, 2024 8:41:27 GMT -5
So that 1.5 million shares to the Mann Group LLC were dilutive? Kind of explains the last few days maybe? No, not at all. 1.5 M shares is about one-half of one percent of MNKD's Outstanding Shares of 270 M. That's .005%. MKND share price has dropped roughly 12 or 13% using 4.90 as the high about 6 trading days ago. |
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Post by prcgorman2 on Apr 3, 2024 8:56:18 GMT -5
$302M of cash and cash equivalents and investments at December 31, 2023 So, after closing out all debt to MidCap and Mann Group, MNKD still has about $260M in cash and cash equivalents and investments (less whatever net cash was spent in Q4). Wouldn't the year-end 2023 balance sheet include cash spent in Q4? Also, I assume 1st quarter activities could have added to (or diminished) the cash balance, but either way we won't know unless MannKind tells us in a filing or at the next earnings report. (They might have said cash balance in their filings on the debt retirement. I'm bad about reading such things.) |
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Post by cretin11 on Apr 3, 2024 9:09:21 GMT -5
So that 1.5 million shares to the Mann Group LLC were dilutive? Kind of explains the last few days maybe? No, not at all. 1.5 M shares is about one-half of one percent of MNKD's Outstanding Shares of 270 M. That's .005%. MKND share price has dropped roughly 12 or 13% using 4.90 as the high about 6 trading days ago. Just a math correction, it is actually 0.5% but your point still remains, that’s much less than the percentage our share price has dropped so the dilution doesn’t seem likely the reason for it. |
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Post by uvula on Apr 3, 2024 9:28:04 GMT -5
No, not at all. 1.5 M shares is about one-half of one percent of MNKD's Outstanding Shares of 270 M. That's .005%. MKND share price has dropped roughly 12 or 13% using 4.90 as the high about 6 trading days ago. Just a math correction, it is actually 0.5% but your point still remains, that’s much less than the percentage our share price has dropped so the dilution doesn’t seem likely the reason for it. Also, mnkd reduced the debt so it is neutral to the overall "worth" of the company. |
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Post by Clement on Apr 3, 2024 9:55:02 GMT -5
$302M of cash and cash equivalents and investments at December 31, 2023 So, after closing out all debt to MidCap and Mann Group, MNKD still has about $260M in cash and cash equivalents and investments (less whatever net cash was spent in Q4). my mistake. I meant to type "(less whatever net cash was spent in Q1)". thanks prc |
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Post by casualinvestor on Apr 3, 2024 10:21:40 GMT -5
If the Mann group received shares and sold some/all of them, that would definitely put a temporary downward pressure on the stock
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