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Post by bill on Aug 4, 2015 20:12:06 GMT -5
Agreed, though with the high call / put ratio over the last few weeks it may eventually become more profitable for the shorts to let the share price rise than to continue artificially suppressing it.
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Post by papihoyos on Aug 5, 2015 16:08:03 GMT -5
I remember being told the 9 million on loan were not in outstanding share count. What in the 10q indicates otherwise? not in the outstanding share count because they were never sold, they were lent.
No reason for MNKD to drop floor until the very last day which is what they will do. I don't believe in fair tales so neither Uncle Al or SNY will be saving the day. (I so want to be wrong)
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Post by dreamboatcruise on Aug 5, 2015 17:08:53 GMT -5
papihoyos... if they wait until the last day to drop the floor then they'd only convert 10% of the shares, wouldn't they?
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Post by benh on Aug 5, 2015 17:25:01 GMT -5
Interesting. So tell me, we know that if Sanofi (or any company) ever acquires 5% of MNKD's outstanding shares, it must be reported to the SEC - is there a similar reporting requirement for noteholders? I find myself wondering what if Sanofi was one of the original noteholders and they own, say, several tens of $million of the convertible notes. Am I correct that they wouldn't need to file a 13g (5%-20%) or 13d (+20%) with the SEC until 5 days after their notes are converted into shares, plus any additional shares they buy off the market (at a great price, I might add)? If you want to see who holds the convertibles, (2015's) g to Whalewisdom and see the filings. Listed PRN. From memory, on desktop, you'll see the interest they received. BoA did quite well out of it.
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Post by dudley on Aug 6, 2015 19:59:19 GMT -5
I remember being told the 9 million on loan were not in outstanding share count. What in the 10q indicates otherwise? not in the outstanding share count because they were never sold, they were lent.
No reason for MNKD to drop floor until the very last day which is what they will do. I don't believe in fair tales so neither Uncle Al or SNY will be saving the day. (I so want to be wrong)
The shares ARE in the outstanding share count and the 10-Q specifically states that fact. This is copied directly from the latest 10-Q: 9. Common and preferred stock
"Included in the common stock outstanding as of March 31, 2015 and December 31, 2014 are 9,000,000 shares of common stock loaned to Bank of America, N.A. under a share lending agreement in connection with the offering of $100.0 million aggregate principal amount of 2015 notes."
The question is what happens when the shares are returned. It's not like a stock buyback where the shares bought get retired and the outstanding share count is reduced accordingly. One more thing to be answered - I can't imagine that won't be a question on the Monday call. I'm hoping they can sell the shares since I still believe they are now 0 for 7 on conversion days with every single day so far the market price being below the exchange price. I predict they will end up cashing out the majority of the $57 million since only a fool would convert at higher prices than they can simply buy in the market and these noteholders are NOT fools. They are well aware of what they are doing.
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Post by babaoriley on Aug 7, 2015 1:19:16 GMT -5
I remember being told the 9 million on loan were not in outstanding share count. What in the 10q indicates otherwise? not in the outstanding share count because they were never sold, they were lent.
No reason for MNKD to drop floor until the very last day which is what they will do. I don't believe in fair tales so neither Uncle Al or SNY will be saving the day. (I so want to be wrong)
Think they were sold, papi, not by MNKD, but by BofA, as they wanted a hedge, so they sold the shares. I'm pretty sure those shares are issued, registered (had to be for BofA to sell them) and outstanding.
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Post by kc on Aug 7, 2015 4:52:16 GMT -5
Wouldn't it be like a share buy back? they would soon become treasury shares. Treasury shares could be seldom at a set price based on the average to a preferred buyer like Sanofi?
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Post by papihoyos on Aug 7, 2015 7:21:49 GMT -5
not in the outstanding share count because they were never sold, they were lent.
No reason for MNKD to drop floor until the very last day which is what they will do. I don't believe in fair tales so neither Uncle Al or SNY will be saving the day. (I so want to be wrong)
Think they were sold, papi, not by MNKD, but by BofA, as they wanted a hedge, so they sold the shares. I'm pretty sure those shares are issued, registered (had to be for BofA to sell them) and outstanding. So in order for Matt statement regarding non-dilution, the amount of shares issued to covert the notes would have to be less than or equal to the 9 million lent.
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Post by mnholdem on Aug 7, 2015 7:56:11 GMT -5
If you read the transcript, Matt's statement was that there would be no secondary dilution, meaning there would be no dilution from a second stock offering to raise cash. Matt went on to explain that there were many ways to retire/restructure the debt, so he could not be specific at that particular conference. Regardless, most shareholders have understood that a share-for-note exchange on the Aug 15 Notes was a distinct possibility and would result in an increase of outstanding shares.
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Post by babaoriley on Aug 7, 2015 18:03:32 GMT -5
mn is correct, papi, besides, by the very nature of a convertible debenture, there is dilution of shares implied, now they may have been implied at a $6.80 conversion price and not at $4.60, or $3.80 or whatever it may ultimately be, if at all.
Nice hit on biotech this week, my portfolio was really happy about it!
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