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Post by parrerob on Apr 4, 2024 16:25:20 GMT -5
Closing Midcap should save 8,5% yearly that's 2,6 million $ yearly. Its a 0,01$ per share a year.
Dont remember what was the interest on Mann Group Convertible.
Anyhow the effect should start from q2.
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Post by casualinvestor on Apr 4, 2024 18:18:07 GMT -5
has anyone figured it out how much interest they’re now going to save in the current quarter/FY, because that should all go straight to the bottom line, i.e., profit. Depends on what interest rate they were getting on the money they used to pay off the loan. Probably just a few % difference on the total amount, rather than 8.5% |
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Post by cedafuntennis on Apr 4, 2024 22:25:57 GMT -5
has anyone figured it out how much interest they’re now going to save in the current quarter/FY, because that should all go straight to the bottom line, i.e., profit. Depends on what interest rate they were getting on the money they used to pay off the loan. Probably just a few % difference on the total amount, rather than 8.5% The main purpose was not to save a few pennies in interest, but to remove all the restrictions associated with this loan. It was a bad loan for MNKD, but it came at a time when we didn't have much choice. I think it was a good move, but I do think understand why the stock tumbled today. |
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Post by celo on Apr 4, 2024 23:58:38 GMT -5
Closing Midcap should save 8,5% yearly that's 2,6 million $ yearly. Its a 0,01$ per share a year. Dont remember what was the interest on Mann Group Convertible. Anyhow the effect should start from q2. Unfortunately, it comes with a 3.1 million exit/prepayment fee that will hit the books during the first quarter. Most likely be written as an expense. |
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Post by celo on Apr 5, 2024 0:04:40 GMT -5
It is nice to see how Mannkind wants to limit dilution with the Mann group deal. Paid them the 8.9 million they owed them and made up the difference in share price by kicking in 1.5 million shares. They are trying to limit the dilution when possible.
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Post by letitride on Apr 5, 2024 0:38:00 GMT -5
I believe Midcap was toxic beyond liens and interest or it would have been renegotiated in light of current revenues other than Afrezza. When MC said he had options on the back of the Sagard deal he was talking about Midcap and any early termination fee is moot to what they really wanted in my opinion.
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Post by casualinvestor on Apr 5, 2024 9:19:49 GMT -5
I agree that paying off the midcap loan is great for Mannkind, and it's not just because of the interest. I just wanted to point out that we can't expect to have 8.5% of the $31.6M added to the bottom line every year. Also, there will likely be some accounting magic that can spread the early repayment fee across the timeframe of the original loan, rather have it all hit in Q2
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Post by Chris-C on Apr 5, 2024 12:19:48 GMT -5
Anytime debt is paid off it’s a positive thing. Very happy to see these two debts out of the way. This is huge milestone for MannKind. Just think where the company was 5 years ago and where we are today. Next year we should see Afrezza Peds approval and Clofazimine approval and Nintedanib in Phase 3. Incredible. I see this as a $20-$25 stock following those events. I’ve been searching so long! Reminds me of a Chicago song. youtu.be/08sDz9Fqfnc?si=J2jzkJa93zJmsEF0As my life goes on, I believe Somehow something's changed Something deep inside Ooh, a part of me There's a strange new light in my eyes (there's a strange new light) Things I've never known Changing my life Changing me I've been searching so long To find an answer Now I know my life has meaning, oh yeah Now I see myself as I am Feeling very free Life is everything Ooh, it's meant to be When my tears have come to an end I will understand (yes I will) What I left behind Part of me I've been searching so long To find an answer Now I know my life has meaning Wait a minute Searching (don't you know I'm searching?) For an answer To the question Oh, yeah Who am I? (Yeah yeah, yeah, yeah) (Ooh, yeah, yeah, yeah) Baby (baby) It's true It's only natural (it's only natural, baby) Good things In life Take a long time Agreed. Chicago lovers like us will also enjoy this cover by Leonid and Friends, an exceptional cover band that seems to improve on the originals. Check ‘em out while we await the next MNKD quarterly- another catalyst, IMO. GLTALL (Longstanding longs)😊 youtu.be/XEDatFQ3m98?si=at-7WMl2UKO1RIFg |
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Post by Thundersnow on Apr 5, 2024 12:30:19 GMT -5
Closing Midcap should save 8,5% yearly that's 2,6 million $ yearly. Its a 0,01$ per share a year. Dont remember what was the interest on Mann Group Convertible. Anyhow the effect should start from q2. Yes it will save MNKD some money but the most important factor is the collateral assets are released. MNKD can now negotiate freely with a partner. Will MNKD use a partner to rollout Pediatric Afrezza? |
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Post by Thundersnow on Apr 5, 2024 12:34:49 GMT -5
I believe Midcap was toxic beyond liens and interest or it would have been renegotiated in light of current revenues other than Afrezza. When MC said he had options on the back of the Sagard deal he was talking about Midcap and any early termination fee is moot to what they really wanted in my opinion. Thats not necessarily true. You need both sides to agree on new terms and I don't think MC wanted to change the terms or maybe they wanted but MNKD didn't agree. This was the best option. Get rid of the Semi Toxic Debt and BE DONE! Now MNKD has the large convertible on the books which will be handled in 2 years. Also don't forget MNKD still has the MILESTONE PAYOUT for incremental ($5M) of Afrezza sales. Not sure when that ends. |
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Post by Thundersnow on Apr 5, 2024 12:37:08 GMT -5
Anytime debt is paid off it’s a positive thing. Very happy to see these two debts out of the way. This is huge milestone for MannKind. Just think where the company was 5 years ago and where we are today. Next year we should see Afrezza Peds approval and Clofazimine approval and Nintedanib in Phase 3. Incredible. I see this as a $20-$25 stock following those events. Paying off debt is not necessarily a good thing. When you pay off debt it opens the company up to takeovers. Debt can be used as a Poison Pill. |
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Post by liane on Apr 5, 2024 12:49:48 GMT -5
Agreed. Chicago lovers like us will also enjoy this cover by Leonid and Friends, an exceptional cover band that seems to improve on the originals. Check ‘em out while we await the next MNKD quarterly- another catalyst, IMO. GLTALL (Longstanding longs)😊 youtu.be/XEDatFQ3m98?si=at-7WMl2UKO1RIFgAgree! Love, love, love Leonid & friends! And just to put a dig into BD s dislike of the Carpenters - they did an amazing cover of Superstar:
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Post by uvula on Apr 5, 2024 13:22:13 GMT -5
Anytime debt is paid off it’s a positive thing. Very happy to see these two debts out of the way. This is huge milestone for MannKind. Just think where the company was 5 years ago and where we are today. Next year we should see Afrezza Peds approval and Clofazimine approval and Nintedanib in Phase 3. Incredible. I see this as a $20-$25 stock following those events. Paying off debt is not necessarily a good thing. When you pay off debt it opens the company up to takeovers. Debt can be used as a Poison Pill. That's quite a stretch. Equivalent to saying there is a downside to being wealthy because you are more likely to be robbed. |
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Post by cretin11 on Apr 5, 2024 14:09:04 GMT -5
Agree we have no realistic worries about a takeover.
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Post by BD on Apr 5, 2024 14:21:08 GMT -5
God, there's no simple way to extricate the Chicago content so stop talking about Chicago!
And I can't believe I didn't know about that tribute band, they sound great.
You know what soured me to Chicago? It happens to be a song that was a roommate's favorite song in college. And I even liked that roommate, it wasn't like the other roommate who loved Genesis that kept me from being into Genesis for years thereafter...
But anyway, the song was "If You Leave Me Now", which I liked the first time or two I heard it and then it just became this grating syrupy yuuuuuck.
But up to Chicago X, man, it was my favorite group.
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