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Post by jeremg on Nov 12, 2015 14:51:42 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 This could be very good for the "shorts", unfortunately. As I mentioned before this is like a game of chess, MNKD had their turn and did the best they could, I think AF has won this round to be honest. MNKD will have to do a domestic offering to raise the rest of the money needed, this puts the ball back into the "shorts" court on the Nasdaq and they can manipulate it down at will in the days/weeks leading up to the offering. This will also add another 37mil shares to be used for covering, lending, and further shorting on WS. The more I re-read the press release, the more I think this is bad news.
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Post by gamblerjag on Nov 12, 2015 14:51:43 GMT -5
well it looks like many will be able to get in below 2.50 early next week.. .. hopefully I will be one of them.
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Post by jpg on Nov 12, 2015 14:52:05 GMT -5
I guess Mannkind isplaying the same (hard to figure out) game then the shorts are playing? This is confusing to say the least. We are not informed as to anyones playbook so how do survive this type of game of chess? Is Mannkind deaperate or outsmarting the shorts? I certainly have no clue but I think we will soon find out.
Fascinating stuff!
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Post by boytroy88 on Nov 12, 2015 14:53:29 GMT -5
How does that translate on terms of SP? I like to lessen my losses (potential losses - who doesn't? ) and if this has a negative affect on the SP I would hold off on my action till the SP settles some.
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Post by jeremg on Nov 12, 2015 14:56:23 GMT -5
I guess Mannkind isplaying the same (hard to figure out) game then the shorts are playing? This is confusing to say the least. We are not informed as to anyones playbook so how do survive this type of game of chess? Is Mannkind deaperate or outsmarting the shorts? I certainly have no clue but I think we will soon find out. Fascinating stuff! This is the most fascinating stock I've ever held, Sherlock Holmes himself wouldn't be able to figure out the next move. Hopefully Al is our Holmes.
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Post by cathode on Nov 12, 2015 15:00:33 GMT -5
I am confused about the "before Sunday Nov 15" statement. This means tomorrow will have to be a huge day on NASDAQ right? Or did the funds purchase nice cheap calls yesterday in the hailstorm, so they don't actually have to get the shares on the "open market"? Looking more and more like that nasty piece of work yesterday plays into the favor of the Israeli ETFs....
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Post by mnholdem on Nov 12, 2015 15:00:38 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 This could be very good for the "shorts", unfortunately. As I mentioned before this is like a game of chess, MNKD had their turn and did the best they could, I think AF has won this round to be honest. MNKD will have to do a domestic offering to raise the rest of the money needed, this puts the ball back into the "shorts" court on the Nasdaq and they can manipulate it down at will in the days/weeks leading up to the offering. This will also add another 37mil shares to be used for covering, lending, and further shorting on WS. The more I re-read the press release, the more I think this is bad news. You are assuming that MannKind needs to sell 50 million shares, 37m of which must be to the open market? That may not be the case at all. The ETF announcement was that 50 million shares had been authorized to be sold, not that they MUST be sold.
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Post by jeremg on Nov 12, 2015 15:01:51 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.
Do you think the price movement today is due to the indexes buying on the open market? The volume is crazy, I think it may be the TASE indexes; they don't have to wait for Sunday despite the fact they have until Sunday. On the bright side if they are buying up shares on the NASDAQ and MNKD has to finish up the offering domestically, that won't net the "shorts" more shares once they cancel out.
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Post by tjones0899 on Nov 12, 2015 15:07:36 GMT -5
Does it mean 13 million shares were brought via direct offering on 11/12, the remaining is going to be purchased via open market until 11/15?
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Post by jeremg on Nov 12, 2015 15:08:26 GMT -5
This could be very good for the "shorts", unfortunately. As I mentioned before this is like a game of chess, MNKD had their turn and did the best they could, I think AF has won this round to be honest. MNKD will have to do a domestic offering to raise the rest of the money needed, this puts the ball back into the "shorts" court on the Nasdaq and they can manipulate it down at will in the days/weeks leading up to the offering. This will also add another 37mil shares to be used for covering, lending, and further shorting on WS. The more I re-read the press release, the more I think this is bad news. You are assuming that MannKind needs to sell 50 million shares to the open market? That may not be the case at all. What are your thoughts? They still need to raise capital, $36.2mil is only about 4-5 months of operation. I guess they could go ahead and hold off for some known or unknown event but I think that is very risky as the PPS could end up lower than it is currently when it comes time for another "BK scare". Personally, I would like MNKD to give AF a break form "worrying" about BK for another year or so.
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Post by stevil on Nov 12, 2015 15:08:42 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. As someone else stated, it seemed bizarre at the time that they'd pay so much debt with cash if money was an issue. Just wish things weren't so unnecessarily secretive. Maybe we'll find out, but how does it benefit them to keep a deal quiet? They probably can't name the partner or perhaps don't want to give false hope if it ends up dissolving but why not even throw out a bone and tell us "there is a potential deal that, if it closes, will be announced soon." What would be the harm in that? Is that against the rules, or would that be considered pumping the stock?
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Post by tbone on Nov 12, 2015 15:10:50 GMT -5
It certainly was brilliant to release news during market hours that they only placed 13 million shares. Thanks again. Sheesh
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Post by cathode on Nov 12, 2015 15:11:40 GMT -5
Does it mean 13 million shares were brought via direct offering on 11/12, the remaining is going to be purchased via open market until 11/15? Directly from the Press Release: "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" "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."
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Post by novafett on Nov 12, 2015 15:12:49 GMT -5
It certainly was brilliant to release news during market hours that they only placed 13 million shares. Thanks again. Sheesh Doesn't seem to have negatively impacted the stock all that much. Still up almost 26%!
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Post by tbone on Nov 12, 2015 15:13:07 GMT -5
On second thought, maybe the news during market was smart. Eliminates the shorts having a party with the news while market is closed, creating exaggerated moves in thin after-hours market.
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