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Post by jeremg on Nov 12, 2015 14:38:24 GMT -5
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Post by mnholdem on Nov 12, 2015 14:40:06 GMT -5
MannKind Announces Pricing of Registered Direct Offering
VALENCIA, Calif., Nov. 12, 2015 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD) today announced the pricing of its previously announced registered direct offering of its common stock to selected investment funds in Israel, as well as the total number of shares to be purchased in the offering. The purchasers in the offering have committed to purchase an aggregate of 13,852,435 shares of common stock at a price per share equal to $2.61 (based upon the exchange rate between the New Israeli Shekel and the U.S. Dollar on November 12, 2015). The gross proceeds from this offering are expected to be $36.2 million, before deducting placement agent fees, escrow agent fees and other estimated offering expenses payable by MannKind. The offering is expected to close on or about November 12, 2015, subject to customary closing conditions.
"We are very pleased with the dual listing in the Tel Aviv Stock Exchange. This listing offers a great opportunity for MannKind, allowing it to continue to leverage its business and clinical operations together with expanding its current investor base and creating opportunities for corporations with the local biomed industry. We would like to thank the Tel Aviv Stock Exchange for the opportunity to be listed for trade. We are committed to creating value for the current and new investors as one," stated MannKind's Chief Financial Officer, Matthew Pfeffer. Mr. Pfeffer went on to note, "A portion of the index funds' required holdings have now been purchased directly from the company. These transactions provide MannKind with needed near term liquidity to support Afrezza operations and Technosphere developments, while minimizing shareholder dilution. Remaining demand from the TASE index funds' long-term holding requirements are expected to be satisfied through open market purchases, which must be completed before Sunday, November 15, 2015."
Sunrise Securities Corp. acted as MannKind's exclusive placement agent in connection with the offering. The shares were offered pursuant to MannKind's effective registration statement on Form S-3 (File No. 333-333-206778) and a related prospectus supplement filed with the Securities and Exchange Commission (SEC) on November 9, 2015. Copies of the prospectus supplement and accompanying prospectus are available on the SEC's website located at www.sec.gov and may also be obtained by contacting MannKind at 25134 Rye Canyon Loop, Suite 300, Valencia, CA 91355, Attn: Investor Relations, or by telephone at (661) 775-5300. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the shares in any state or other jurisdiction which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
Stock Exchange Listings
MannKind's common stock is listed on The Nasdaq Global Market and the Tel Aviv Stock Exchange (TASE). Investors should note that trading on The Nasdaq Global Market occurs Monday through Friday, 9:30 am to 4:00 pm Eastern Time, except on Nasdaq trading holidays, and trading on the TASE occurs Sunday from 8:30 am to 4:30 pm Israel time and Monday to Thursday from 8:30 am to 5:30 Israel time, except on TASE trading holidays. The TASE Clearing House is electronically linked to the Depository Trust Company, a subsidiary of the Depository Trust & Clearing Corporation, to automate the cross-border settlement of shares listed on both the TASE and a U.S. Exchange.
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I like the minimal dilution, plus really like that the "Remaining demand from the TASE index funds' long-term holding requirements are expected to be satisfied through open market purchases, which must be completed before Sunday, November 15, 2015."
Taking those shares out of the U.S. market into the TASE, where they cannot be shorted? It seems to me that available shares of MNKD may be getting a wee bit harder to come by.  
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Post by novafett on Nov 12, 2015 14:41:17 GMT -5
$36 million falls quite a bit short from what they were saying right?  |
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Post by jeremg on Nov 12, 2015 14:41:34 GMT -5
I believe this explains why we are seeing such a large jump today, they are buying on the open market. Why would they buy on the open market as opposed to through the offering, do they expect to sell in the next 6months?
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Post by jeremg on Nov 12, 2015 14:44:12 GMT -5
$36 million falls quite a bit short from what they were saying right? We will need a domestic offering, which if the current price is stable and doesn't crash again, could net a fair amount of money in an offering. On the other hand this would provide the shares for covering as well as further shorting. This stock is like a mystery game. |
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Post by Deleted on Nov 12, 2015 14:44:59 GMT -5
Christ, another surprise and the SP is already going down as a result of this. What is next? I'm clueless and surprised, (again!), over this.
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Post by jeremg on Nov 12, 2015 14:46:21 GMT -5
Christ, another surprise and the SP is already going down as a result of this. What is next? I'm clueless and surprised, (again!), over this. Its like a game of chess, next move is MNKD. |
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Post by obamayoumama on Nov 12, 2015 14:46:22 GMT -5
Guess what, 9 million shares came back and 13 million went out, where are the ETFs going to find the remaining shares? Open market purchases, and that is a lot less shares available to short. I guess tomorrow is going to be interesting. I personally am glad they didn't sell all 50 million, this is now a bigger nightmare for the shorts. Congrats Matt |
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Post by tbone on Nov 12, 2015 14:47:32 GMT -5
Maybe they were smart and finished the ATM off today.
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Post by tonyz on Nov 12, 2015 14:48:16 GMT -5
We'll have to see how this plays out, but it may turn out to be a lot less dilutive to shareholders. Does answer my question as to who the mystery buyer was between 10:15 and 10:30 today. Looks like it was the etfs. If they take most of those shares out of circulation it should help the stock price.
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Post by Deleted on Nov 12, 2015 14:48:30 GMT -5
Guess what, 9 million shares came back and 13 million went out, where are the ETFs going to find the remaining shares? Open market purchases, and that is a lot less shares available to short. I guess tomorrow is going to be interesting. I personally am glad they didn't sell all 50 million, this is now a bigger nightmare for the shorts. Congrats Matt And once share price goes up a bit, can Mannkind quietly sell shares from it's own inventory directly to investors? |
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Post by me on Nov 12, 2015 14:48:13 GMT -5
The ETFs need to acquire approximately $107 million worth of stock. With $36 million in the direct offering, it appears they hope to get a better deal in the open market. We know they need to have some shares that are not locked up for 6 months, which allows them to rebalance, but they took only one third direct?
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Post by cfield23 on Nov 12, 2015 14:49:08 GMT -5
mnholdem -- do you think the "slight modifications" to the agreements really meant that the direct offering would be less shares (less cash for mnkd) but that the rest of the shares would be bought on the public market? I think this is the case. It mitigates the ETF's risk because I don't think buying on the open market carries a restriction of "long term holding" -- but rather they can buy/sell whenever. Thoughts?
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Post by mnholdem on Nov 12, 2015 14:51:14 GMT -5
We've not receive any confirmation that the 9M shares that BofA borrowed have been returned to the treasury. Those can also be sold without dilution, since they are already outstanding shares. I suspect that they'll wait until pps is higher and might even return them to the treasury until later when, or if, needed.
It's as if management has no immediate worries about cash. Is a deal in the works?
The share price is not plummeting, there is still a battle going on in the trading action. I suspect the bears are attempting to pull it down, but now the buying pressure may become insurmountable. |
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Post by obamayoumama on Nov 12, 2015 14:51:38 GMT -5
$36 million falls quite a bit short from what they were saying right? . I believe that MNKD sold enough in the offering based on the current price, MNKD only sold as much as it needed I believe. The ETFs would have wanted all the shares through the offering, because they wouldn't have to buy in the open market and not get the discount and have to worry about the price. Brilliant Matt, |
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