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Post by liane on Dec 13, 2013 8:47:50 GMT -5
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Post by notamnkdmillionaire on Dec 13, 2013 8:58:13 GMT -5
Gotta say this is good news. Not great news but good news, especially that Deerfield converted to shares. Maybe they think the PPS is about to EXPLODE!
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Post by savzak on Dec 13, 2013 9:01:06 GMT -5
Form 8-K for MANNKIND CORP
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13-Dec-2013
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance She
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On July 1, 2013, we entered into a Facility Agreement (the "Facility Agreement") with Deerfield Private Design Fund II, L.P. and Deerfield Private Design International II, L.P. (collectively, "Deerfield"), providing for the sale by us of up to $160.0 million principal amount of our 9.75% senior secured convertible notes (the "Convertible Notes") to Deerfield in four tranches. A portion of the principal amount of the Convertible Notes may be converted into shares of our common stock (the "Conversion Shares") at the noteholder's option. As previously disclosed, the closing of the first tranche of Convertible Notes in the aggregate principal amount of $40.0 million occurred on July 1, 2013 and the closing of the second tranche of Convertible Notes in the aggregate principal amount occurred on September 5, 2013.
The closing of the third tranche of Convertible Notes in the aggregate principal amount of $40.0 million occurred on December 9, 2013. The proceeds from the sale of the third tranche of Convertible Notes will be used to repay our outstanding indebtedness under our 3.75% Senior Convertible Notes due 2013.
In addition, on December 10, 2013, Deerfield elected to convert $1.5 million of aggregate principal amount under the second tranche of Convertible Notes, pursuant to which we issued Deerfield 298,790 Conversion Shares in the aggregate.
The descriptions of the Facility Agreement and the Convertible Notes set forth in Item 1.01 of our Current Report on Form 8-K filed on July 1, 2013 are hereby incorporated by reference into this Item 2.03. Such descriptions do not purport to be complete and are qualified in their entirety by reference to the Facility Agreement and the form of Convertible Note, copies of which are attached to our Current Report on Form 8-K filed on July 1, 2013 as Exhibit 99.1 and Exhibit 99.2, respectively.
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abwo
Newbie
Posts: 16
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Deerfield
Dec 13, 2013 12:40:31 GMT -5
via mobile
Post by abwo on Dec 13, 2013 12:40:31 GMT -5
Hi,
IIRC, first tranche was paid by Deerfield because the 171 and 175 trials met their primary endpoints. Quite an important goal right? Second tranche thanks to Mannkind resubmitting the NDA on schedule as planned. Quite a crucial milestone as well!!
So I'm really surprised to not see anyone at least guess or ask why third tranche is being paid today?
Am I missing something? In my mind a predefined "quite important goal" agreed a long time ago between Mannkind and Deerfield has to have been met? So what do you guys think, preliminary partner agreement, anything related to production ramp-up, what's goin'on?
Which leads me to my first post ever as usually there's always someone asking first, even though I've been reading this board, others and all the previous ones daily for over 8 years now of being long, accumulating and never selling!
Cheers and thanks for all your opinions and analysis, Abwo
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abwo
Newbie
Posts: 16
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Deerfield
Dec 13, 2013 12:46:01 GMT -5
via mobile
Post by abwo on Dec 13, 2013 12:46:01 GMT -5
Of course another guess is that the original deal implies that if milestones 1 and 2 were met then right when Mannkind was needing it, they would be paid tranche 3 to repay the convertibles. Which would also explain the lack of market reaction as it just doesn't change anything. But while we all wait and it's boring I would like to think there's more to it ;-)
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Post by babaoriley on Dec 13, 2013 12:47:31 GMT -5
From memory only, I think so long as the first two funded, then the third would be funded in connection with payoff of those Senior Convertible Notes. I don't think there was another milestone which MNKD needed to achieve in order to get this tranche. Someone else will know for sure, but I don't have time to check right now.
Anyone notice the volume on the warrants today (as reported by Yahoo, so who knows)? Someone seemed to sell a whole bunch, then again, someone had to buy them.
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Post by liane on Dec 13, 2013 12:59:22 GMT -5
Baba,
You are correct. Tranche 3 could be tapped in conjunction with payoff of the notes, and it could be used for that purpose. Those notes mature on 12/15/13.
Yeah, saw that on the warrants - don't know what's up.
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abwo
Newbie
Posts: 16
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Deerfield
Dec 13, 2013 13:26:59 GMT -5
via mobile
Post by abwo on Dec 13, 2013 13:26:59 GMT -5
Thanks, I didn't recall that. So much for my excitement at first-well I'm keeping that for the D-Day - should I say A (pproval) Day ;-)
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