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Post by mnholdem on Aug 12, 2015 10:18:00 GMT -5
kc,
The 9 million shares were loaned by MannKind Corporation (not Al nor the Al Mann Group) and must be returned by the 45th business day following the date the Notes cease to be Outstanding. Here is an excerpt and link to the August 24, 2010 filing. You'll find the section of the Share Lending Agreement to Bank of America farther toward the end of this excerpt:
www.sec.gov/Archives/edgar/data/899460/000095012310080306/v57130e8vk.htm
Item 8.01 Other Events.
Senior Convertible Note Offering
On August 18, 2010, we entered into a purchase agreement (the “Purchase Agreement”) with Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”), acting as representative of the several initial purchasers named therein, relating to the sale by us of $100 million aggregate principal amount of 5.75% Senior Convertible Notes due 2015 (the “Notes”). Pursuant to the Purchase Agreement, we granted the initial purchasers an option to purchase up to an additional $10 million aggregate principal amount of the Notes solely to cover over-allotments, if any. The foregoing description of the Purchase Agreement is qualified in its entirety by reference to the Purchase Agreement, which is attached hereto as Exhibit 99.1.
We offered and sold the Notes to the initial purchasers in reliance on the exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”). The Notes were offered and sold by the initial purchasers to qualified institutional buyers pursuant to Rule 144A under the Securities Act. None of the Notes (including any shares of common stock issuable upon conversion thereof) has been registered under the Securities Act or under any state securities laws and, unless so registered, may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
The net proceeds to us from the sale of the Notes were approximately $95.5 million (which does not include any additional proceeds we may receive if the initial purchasers exercise their overallotment option), after deducting the discount to the initial purchasers of $3.3 million and the estimated offering expenses payable by us. We intend to use the net proceeds from the sale of the Notes to fund the costs of our clinical trials programs and other research and development activities, to expand our manufacturing operations, both on-going and planned, and for general corporate purposes, including working capital.
The Notes were issued under an indenture (the “Indenture”) entered into between us and Wells Fargo Bank, National Association, as trustee. The Notes will be our general, unsecured, senior obligations and will rank equally in right of payment with our other unsecured senior debt. The Notes bear interest at the rate of 5.75% per year on the principal amount, payable semiannually in arrears in cash on February 15 and August 15 of each year, beginning February 15, 2011. The Notes will mature on August 15, 2015.
The Notes are convertible, at the option of the holder, at any time on or prior to the close of business on the business day immediately preceding the stated maturity date, into shares of our common stock at a conversion rate of 147.0859 shares per $1,000 principal amount of Notes, which is equal to a conversion price of approximately $6.80 per share. The conversion rate is subject to adjustment under certain circumstances described in the Indenture.
If certain fundamental changes occur, we will be obligated to pay a fundamental change make-whole premium on any Notes converted in connection with such fundamental change by increasing the conversion rate on such Notes. In such instances, the amount of the fundamental change make-whole premium will be based on our common stock price and the effective date of the applicable fundamental change.
If we undergo certain fundamental changes, except in certain circumstances, each holder of Notes will have the option to require us to repurchase all or any portion of that holder’s Notes. The fundamental change repurchase price will be 100% of the principal amount of the Notes to be repurchased plus accrued and unpaid interest, if any.
We may elect to redeem some or all of the Notes but only if the closing price of our common stock has equaled or exceeded 150% of the conversion price for at least 20 of the 30 consecutive trading days ending on the trading day before our redemption notice. The redemption price will equal 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, plus a make-whole payment equal to the sum of the present values of the remaining scheduled payments of interest on the Notes to be redeemed through and including August 15, 2015 (other than the interest accrued up to, but excluding, the redemption date).
In addition, we will be obligated to make the make-whole payment on all Notes called for redemption and converted during the period from the date we mailed the notice of redemption to and including the redemption date. We may elect to pay such make-whole payment to converting holders in cash or shares of our common stock, subject to certain limitations.
The foregoing description of the Notes and the Indenture is qualified in its entirety by reference to the Indenture and form of Note, which are attached hereto as Exhibits 4.1 and 4.2, respectively.
Share Lending Agreement and Common Stock Offering
In connection with the offering of the Notes, on August 18, 2010, we entered into a share lending agreement (the “Share Lending Agreement”) with Bank of America, N.A. (the “Share Borrower”), an affiliate of Merrill Lynch, pursuant to which we lent 9,000,000 shares of our common stock (the “Borrowed Shares”) to the Share Borrower. The Share Borrower is obligated to return the borrowed shares (or identical shares or, in certain circumstances, the cash value thereof) to us on or about the 45th business day following the date as of which the entire principal amount of the Notes ceases to be outstanding, subject to extension or acceleration in certain circumstances or early termination at the Share Borrower’s option.
Also on August 18, 2010, we entered into an underwriting agreement (the “Underwriting Agreement”) with Merrill Lynch and the Share Borrower. Pursuant to the Underwriting Agreement, the Borrowed Shares were offered and sold to the public at a fixed price of $5.55 per share. We did not receive any proceeds from the sale of the Borrowed Shares to the public, but received a nominal lending fee of $90,000 pursuant to the Share Lending Agreement for the use by the Share Borrower of the Borrowed Shares. The Share Borrower or its affiliate received all of the net proceeds from the sale of Borrowed Shares to the public.
The foregoing description of the Share Lending Agreement and the Underwriting Agreement is qualified in its entirety by reference to the Share Lending Agreement and the Underwriting Agreement, which are attached hereto as Exhibits 99.2 and 1.1, respectively.
A copy of the opinion of Cooley LLP relating to the legality of the issuance of the Borrowed Shares is attached hereto as Exhibit 5.1. |
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Post by tbone on Aug 12, 2015 10:28:55 GMT -5
The more I read that deal the more annoying it is......Here, sell $50M of our stock that we will lend you for free. Then you lend the proceeds back to us along with an additional $50M and we will pay you 5.75% on the whole thing.
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Post by mnholdem on Aug 12, 2015 10:34:51 GMT -5
I don't know how many devils are in the details of that share lending agreement, but I would have liked for MannKind to have specified in the Agreement that those borrowed shares would only be allowed to be sold to holders of the 2015 Notes, as a hedge for their investment. Incidentally, MannKind did receive a $90,000 lending fee, which is for all practical purposes, free.  |
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Post by kc on Aug 12, 2015 11:09:07 GMT -5
The more I read that deal the more annoying it is......Here, sell $50M of our stock that we will lend you for free. Then you lend the proceeds back to us along with an additional $50M and we will pay you 5.75% on the whole thing. When your back is against the wall you do what you have to do to survive. |
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Post by mnholdem on Aug 12, 2015 12:08:01 GMT -5
On the subject of share dilution, somebody recently posted the question of whether BofA needs to return the shares or can just pay cash and keep the shares. Here is your answer from an excerpt of Attachment 99.2 of the 8/24/10 SEC filing, which is the actual Share Lending Agreement between MannKind Corp and Bank of American:
"Section 4. Loan Terminations.
(a) Borrower may terminate all or any portion of the Loan on any Business Day by giving written notice thereof to Lender and transferring the corresponding number of Loaned Shares to Lender (with an amount of cash determined by Borrower in its reasonable discretion in lieu of fractional Loaned Shares), without any consideration being payable in respect thereof by Lender to Borrower.
(b) Subject to Section 10, the Loan shall terminate on the date this Agreement terminates pursuant to Section 13 (the “Facility Termination Date”) and all outstanding Loaned Shares shall be delivered by Borrower to Lender (with an amount of cash determined by Borrower in its reasonable discretion in lieu of fractional Loaned Shares), without any consideration being payable in respect thereof by Lender to Borrower, no later than the fifth Business Day following the Facility Termination Date.
(c) Subject to Section 10, if the Loan or any portion thereof is terminated upon the occurrence of a Default as set forth in Section 9, the Loaned Shares shall be delivered by Borrower to Lender, without any consideration being payable in respect thereof by Lender to Borrower, no later than the third Business Day following the termination date of such Loan, as provided in Section 9.
-----
Per Section 4(a) and Section4(b) of the agreement, above, ALL borrowed shares must be returned. Cash is only paid for any fractional shares, of which there aren't any because there have been no stock splits.
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Post by Deleted on Aug 12, 2015 12:09:35 GMT -5
John where did you read that it would take a few months to return the 9 million shares. Are they company shares (treasury stock) or owned personally by Al Mann or his trust? I am unclear with out researching this. I read in the annual report shares are to be returned I believe 45 days after payment of notes. I am going from memory but will verify when I go home. |
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Post by Deleted on Aug 12, 2015 12:14:23 GMT -5
I see mnholdem verified what I recalled. Thanks
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Post by mnholdem on Aug 12, 2015 12:21:37 GMT -5
I see mnholdem verified what I recalled. Thanks Here is the link for anyone who wants it:
www.sec.gov/Archives/edgar/data/899460/000095012310080306/v57130exv99w2.htm
Section 13. Termination of Agreement.
(a) This Agreement shall terminate upon the earliest of (i) the 45th Business Day following the date as of which the entire principal amount of Convertible Notes ceases to be outstanding and Lender has settled all payments or deliveries in respect of such Convertible Notes, whether as a result of conversion, redemption, repurchase, cancellation, at maturity or otherwise, subject to Section 10, (ii) the written agreement of Lender and Borrower to so terminate, (iii) August 24, 2010 (or such later date as Borrower and Lender shall have agreed which in no event shall be later than September 7, 2010) (August 24, 2010 or such later date being the “Early Unwind Date”) if the initial offering of the Convertible Notes has not closed prior to such Early Unwind Date pursuant to the terms of the underwriting agreement relating to the Convertible Notes, (iv) the occurrence of a Borrower Default, at the option of Lender, as set forth in Section 9(a) and (v) the occurrence of a Lender Default, at the option of Borrower, as set forth in Section 9(b).
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Post by longstocking on Aug 12, 2015 12:30:08 GMT -5
On the subject of share dilution, somebody recently posted the question of whether BofA needs to return the shares or can just pay cash and keep the shares. Here is your answer from an excerpt of Attachment 99.2 of the 8/24/10 SEC filing, which is the actual Share Lending Agreement between MannKind Corp and Bank of American: "Section 4. Loan Terminations. (a) Borrower may terminate all or any portion of the Loan on any Business Day by giving written notice thereof to Lender and transferring the corresponding number of Loaned Shares to Lender (with an amount of cash determined by Borrower in its reasonable discretion in lieu of fractional Loaned Shares), without any consideration being payable in respect thereof by Lender to Borrower. (b) Subject to Section 10, the Loan shall terminate on the date this Agreement terminates pursuant to Section 13 (the “Facility Termination Date”) and all outstanding Loaned Shares shall be delivered by Borrower to Lender (with an amount of cash determined by Borrower in its reasonable discretion in lieu of fractional Loaned Shares), without any consideration being payable in respect thereof by Lender to Borrower, no later than the fifth Business Day following the Facility Termination Date. (c) Subject to Section 10, if the Loan or any portion thereof is terminated upon the occurrence of a Default as set forth in Section 9, the Loaned Shares shall be delivered by Borrower to Lender, without any consideration being payable in respect thereof by Lender to Borrower, no later than the third Business Day following the termination date of such Loan, as provided in Section 9. ----- Per Section 4(a) and Section4(b) of the agreement, above, ALL borrowed shares must be returned. Cash is only paid for any fractional shares, of which there aren't any because there have been no stock splits. Thank you for the clarification. Much appreciated. |
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Post by papihoyos on Aug 12, 2015 14:21:49 GMT -5
I believe I read 45 business days
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Post by papihoyos on Aug 12, 2015 14:31:03 GMT -5
I believe I read 45 business days Sorry, responded from page 13 post and see that someone posted the answer on page 14. |
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Post by babaoriley on Aug 12, 2015 17:36:08 GMT -5
On the subject of share dilution, somebody recently posted the question of whether BofA needs to return the shares or can just pay cash and keep the shares. Here is your answer from an excerpt of Attachment 99.2 of the 8/24/10 SEC filing, which is the actual Share Lending Agreement between MannKind Corp and Bank of American: "Section 4. Loan Terminations. (a) Borrower may terminate all or any portion of the Loan on any Business Day by giving written notice thereof to Lender and transferring the corresponding number of Loaned Shares to Lender (with an amount of cash determined by Borrower in its reasonable discretion in lieu of fractional Loaned Shares), without any consideration being payable in respect thereof by Lender to Borrower. (b) Subject to Section 10, the Loan shall terminate on the date this Agreement terminates pursuant to Section 13 (the “Facility Termination Date”) and all outstanding Loaned Shares shall be delivered by Borrower to Lender (with an amount of cash determined by Borrower in its reasonable discretion in lieu of fractional Loaned Shares), without any consideration being payable in respect thereof by Lender to Borrower, no later than the fifth Business Day following the Facility Termination Date. (c) Subject to Section 10, if the Loan or any portion thereof is terminated upon the occurrence of a Default as set forth in Section 9, the Loaned Shares shall be delivered by Borrower to Lender, without any consideration being payable in respect thereof by Lender to Borrower, no later than the third Business Day following the termination date of such Loan, as provided in Section 9. ----- Per Section 4(a) and Section4(b) of the agreement, above, ALL borrowed shares must be returned. Cash is only paid for any fractional shares, of which there aren't any because there have been no stock splits. "Subject to section 10" - here's section 10 for anyone that is curious: "Section 10. Borrower’s Right to Extend; Lender’s Remedies. (a) Except to the extent a Loan is terminated pursuant to Section 9 as a result of a Borrower Default, Borrower may, following the termination of any portion of the Loan pursuant to Section 4, delay the date on which the related Loaned Shares are due to Lender (the “Settlement Due Date” as so delayed to the extent applicable), with respect to some or all of such Loaned Shares, if Borrower determines in good faith upon the advice of counsel that such extension is necessary or appropriate to enable Borrower or any of its affiliates to effect purchases of Common Stock to deliver to Lender pursuant to this Agreement in a manner that (x) is, or would be, in compliance with legal and regulatory requirements (i) applicable to Borrower or such affiliates in purchasing such shares of Common Stock or (ii) if Borrower were deemed to be Lender or an affiliated purchaser of Lender, that would be applicable to Lender in purchasing such shares of Common Stock and (y) shall not be commercially impracticable, in the reasonable judgment of Borrower, in the time period required by Section 4. (b) If, upon the termination of any Loan pursuant to Section 4 and the purchase of Common Stock in an amount equal to all or any portion of the Loaned Shares to be delivered to Lender by Borrower in accordance with Section 4 of this Agreement (i) shall be prohibited by any law, rules or regulation of any governmental authority to which it is or would be subject, (ii) shall violate, or would upon such purchase likely violate, any order or prohibition of any court, tribunal or other governmental authority, (iii) shall require the prior consent of any court, tribunal or governmental authority prior to any such repurchase or (iv) would subject Borrower, in the commercially reasonable judgment of Borrower, to any liability or potential liability under any applicable federal securities laws (including, without limitation, Section 16 of the Exchange Act or applicable banking regulations) (each of (i), (ii), (iii) and (iv), a “Legal Obstacle”), then, in each case, Borrower shall immediately notify Lender of the Legal Obstacle and the basis therefor, whereupon such Borrower’s obligations under Section 4 shall be suspended until such time as no Legal Obstacle with respect to such obligations shall exist (a “Repayment Suspension”). Following the occurrence of and during the continuation of any Repayment Suspension, Borrower shall use its reasonable best efforts to remove or cure the Legal Obstacle as soon as practicable and to deliver to Lender any Loaned Shares it actually acquires; provided that Lender shall promptly reimburse all costs and expenses (including legal counsel to Borrower) incurred or, at Borrower’s election, provide reasonably adequate surety or guarantee for any such costs and expenses that may be incurred by Borrower, in each case in removing or curing such Legal Obstacle. (c) If Borrower is unable to remove or cure any Legal Obstacle within 10 Business Days, Lender may elect to require Borrower, upon five Business Days’ advance written notice, to pay to Lender in lieu of the delivery of Loaned Shares otherwise required to be delivered, an amount in immediately available funds (the “Replacement Cash”) equal to the product of (A) the average of the Relevant Prices over the 40 consecutive Business Day period immediately preceding the termination date of the Loan and (B) the number of Loaned Shares otherwise required to be delivered that Borrower failed to deliver; provided that if any Business Day in the 40 consecutive Business Day averaging period described in clause (A) above is a Disrupted Day in full or in part, (x) such averaging period shall be extended by one Business Day for each such Disrupted Day, and (y) the Borrower shall calculate the amount of Replacement Cash according to an appropriately weighted average of the Relevant Prices over such averaging period (as extended). (d) If Borrower shall fail to deliver to Lender on the Settlement Due Date the applicable Loaned Shares relating to any portion of the Loan that has been terminated under Section 4 and Borrower is unable to remove or cure any Legal Obstacle within 10 Business Days or Borrower shall fail to pay the Replacement Cash to Lender in accordance with Section 10(c) above (to the extent Borrower is required to pay Replacement Cash), then, in either case, Lender shall have the right (upon prior written notice to Borrower) to purchase a like number of shares of Common Stock (and, Non-Cash Distributions, if applicable pursuant to Section 5(b)) (“Replacement Shares”) in the principal market for such securities in a commercially reasonable manner (and Lender shall promptly notify Borrower of the aggregate purchase price of the Replacement Shares upon the exercise of such right). To the extent Lender shall exercise such right, Borrower’s obligation to return a like amount of Loaned Shares or to pay the Replacement Cash, as applicable, shall terminate and Borrower shall be liable to Lender for the purchase price of such Replacement Shares (plus all other amounts, if any, due to Lender hereunder), all of which shall be due and payable within three Business Days of notice to Borrower by Lender of the aggregate purchase price of the Replacement Shares. The purchase price of Replacement Shares purchased under this Section 10 shall include broker’s fees and commissions and all other reasonable costs, fees and expenses related to such purchase and sale." I guess BofA could ask for more time under certain circumstances, the most likely of which is "gee, you can't expect us to buy all those shares so quickly, we'd drive the price up." See section 10(a)(y), which gives a bit of wiggle room, but I don't think, given the volume on the stock that excuse will fly. Also, I doubt they will have a problem with an "Legal Obstacle," but, hell, what do I know about "Legal Obstacles" - never encountered one that couldn't be hurdled!  |
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Post by longstocking on Aug 12, 2015 18:07:09 GMT -5
On the subject of share dilution, somebody recently posted the question of whether BofA needs to return the shares or can just pay cash and keep the shares. Here is your answer from an excerpt of Attachment 99.2 of the 8/24/10 SEC filing, which is the actual Share Lending Agreement between MannKind Corp and Bank of American: "Section 4. Loan Terminations. (a) Borrower may terminate all or any portion of the Loan on any Business Day by giving written notice thereof to Lender and transferring the corresponding number of Loaned Shares to Lender (with an amount of cash determined by Borrower in its reasonable discretion in lieu of fractional Loaned Shares), without any consideration being payable in respect thereof by Lender to Borrower. (b) Subject to Section 10, the Loan shall terminate on the date this Agreement terminates pursuant to Section 13 (the “Facility Termination Date”) and all outstanding Loaned Shares shall be delivered by Borrower to Lender (with an amount of cash determined by Borrower in its reasonable discretion in lieu of fractional Loaned Shares), without any consideration being payable in respect thereof by Lender to Borrower, no later than the fifth Business Day following the Facility Termination Date. (c) Subject to Section 10, if the Loan or any portion thereof is terminated upon the occurrence of a Default as set forth in Section 9, the Loaned Shares shall be delivered by Borrower to Lender, without any consideration being payable in respect thereof by Lender to Borrower, no later than the third Business Day following the termination date of such Loan, as provided in Section 9. ----- Per Section 4(a) and Section4(b) of the agreement, above, ALL borrowed shares must be returned. Cash is only paid for any fractional shares, of which there aren't any because there have been no stock splits. "Subject to section 10" - here's section 10 for anyone that is curious: "Section 10. Borrower’s Right to Extend; Lender’s Remedies. (a) Except to the extent a Loan is terminated pursuant to Section 9 as a result of a Borrower Default, Borrower may, following the termination of any portion of the Loan pursuant to Section 4, delay the date on which the related Loaned Shares are due to Lender (the “Settlement Due Date” as so delayed to the extent applicable), with respect to some or all of such Loaned Shares, if Borrower determines in good faith upon the advice of counsel that such extension is necessary or appropriate to enable Borrower or any of its affiliates to effect purchases of Common Stock to deliver to Lender pursuant to this Agreement in a manner that (x) is, or would be, in compliance with legal and regulatory requirements (i) applicable to Borrower or such affiliates in purchasing such shares of Common Stock or (ii) if Borrower were deemed to be Lender or an affiliated purchaser of Lender, that would be applicable to Lender in purchasing such shares of Common Stock and (y) shall not be commercially impracticable, in the reasonable judgment of Borrower, in the time period required by Section 4. (b) If, upon the termination of any Loan pursuant to Section 4 and the purchase of Common Stock in an amount equal to all or any portion of the Loaned Shares to be delivered to Lender by Borrower in accordance with Section 4 of this Agreement (i) shall be prohibited by any law, rules or regulation of any governmental authority to which it is or would be subject, (ii) shall violate, or would upon such purchase likely violate, any order or prohibition of any court, tribunal or other governmental authority, (iii) shall require the prior consent of any court, tribunal or governmental authority prior to any such repurchase or (iv) would subject Borrower, in the commercially reasonable judgment of Borrower, to any liability or potential liability under any applicable federal securities laws (including, without limitation, Section 16 of the Exchange Act or applicable banking regulations) (each of (i), (ii), (iii) and (iv), a “Legal Obstacle”), then, in each case, Borrower shall immediately notify Lender of the Legal Obstacle and the basis therefor, whereupon such Borrower’s obligations under Section 4 shall be suspended until such time as no Legal Obstacle with respect to such obligations shall exist (a “Repayment Suspension”). Following the occurrence of and during the continuation of any Repayment Suspension, Borrower shall use its reasonable best efforts to remove or cure the Legal Obstacle as soon as practicable and to deliver to Lender any Loaned Shares it actually acquires; provided that Lender shall promptly reimburse all costs and expenses (including legal counsel to Borrower) incurred or, at Borrower’s election, provide reasonably adequate surety or guarantee for any such costs and expenses that may be incurred by Borrower, in each case in removing or curing such Legal Obstacle. (c) If Borrower is unable to remove or cure any Legal Obstacle within 10 Business Days, Lender may elect to require Borrower, upon five Business Days’ advance written notice, to pay to Lender in lieu of the delivery of Loaned Shares otherwise required to be delivered, an amount in immediately available funds (the “Replacement Cash”) equal to the product of (A) the average of the Relevant Prices over the 40 consecutive Business Day period immediately preceding the termination date of the Loan and (B) the number of Loaned Shares otherwise required to be delivered that Borrower failed to deliver; provided that if any Business Day in the 40 consecutive Business Day averaging period described in clause (A) above is a Disrupted Day in full or in part, (x) such averaging period shall be extended by one Business Day for each such Disrupted Day, and (y) the Borrower shall calculate the amount of Replacement Cash according to an appropriately weighted average of the Relevant Prices over such averaging period (as extended). (d) If Borrower shall fail to deliver to Lender on the Settlement Due Date the applicable Loaned Shares relating to any portion of the Loan that has been terminated under Section 4 and Borrower is unable to remove or cure any Legal Obstacle within 10 Business Days or Borrower shall fail to pay the Replacement Cash to Lender in accordance with Section 10(c) above (to the extent Borrower is required to pay Replacement Cash), then, in either case, Lender shall have the right (upon prior written notice to Borrower) to purchase a like number of shares of Common Stock (and, Non-Cash Distributions, if applicable pursuant to Section 5(b)) (“Replacement Shares”) in the principal market for such securities in a commercially reasonable manner (and Lender shall promptly notify Borrower of the aggregate purchase price of the Replacement Shares upon the exercise of such right). To the extent Lender shall exercise such right, Borrower’s obligation to return a like amount of Loaned Shares or to pay the Replacement Cash, as applicable, shall terminate and Borrower shall be liable to Lender for the purchase price of such Replacement Shares (plus all other amounts, if any, due to Lender hereunder), all of which shall be due and payable within three Business Days of notice to Borrower by Lender of the aggregate purchase price of the Replacement Shares. The purchase price of Replacement Shares purchased under this Section 10 shall include broker’s fees and commissions and all other reasonable costs, fees and expenses related to such purchase and sale." I guess BofA could ask for more time under certain circumstances, the most likely of which is "gee, you can't expect us to buy all those shares so quickly, we'd drive the price up." See section 10(a)(y), which gives a bit of wiggle room, but I don't think, given the volume on the stock that excuse will fly. Also, I doubt they will have a problem with an "Legal Obstacle," but, hell, what do I know about "Legal Obstacles" - never encountered one that couldn't be hurdled! If this is already obvious to others and I'm mistaken, I apologize, but is there certainty that BofA sold their shares and now needs to buy them back, or hasn't already bought them back? StockTwits, YMB and ProBoards all have folks assuming that a buy-back is required and assume a PPS increase. How can we get confirmation? |
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Post by mssciguy on Aug 12, 2015 18:14:43 GMT -5
Do you ever get the feeling the the stock price is artificially low? Look what just happened in a/h 19:09 $ 4.36 10 19:08 $ 4.36 30 19:08 $ 4.36 30 19:08 $ 4.36 30 18:09 $ 4.36 10 18:06 $ 4.36 20 17:57 $ 4.37 High 100 Read more: www.nasdaq.com/symbol/mnkd/after-hours#ixzz3ie4W2YeSa lot of "wtf" moments with this stock but the company is great |
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Post by babaoriley on Aug 12, 2015 18:53:42 GMT -5
longstocking, I'm not sure there's any way to get verification, but absolutely it is possible that BofA already purchased the shares. I'm betting, though, if they did, it's only very recently and in the sub $4.50 range; hope they haven't, it's always nice to have someone stuck on having to deliver that many shares.
Oh, must edit, Harry probably knows!
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