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Post by Deleted on Jan 10, 2016 10:10:35 GMT -5
MannKind is authorized to issue 10,000,000 preferred shares. Al could purchase those shares and provide sufficient cash for several years to get through this transition period.
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Post by 4allthemarbles on Jan 10, 2016 15:27:41 GMT -5
Interesting point- Still speculation. I just say that because we really don't know yet if MNKD is happy about the split. I would like to believe All Mann will do whatever it takes to see this come to fruitition. But it's not like he hasn't already invested a substantial amount of money already.
I think we all know he doesn't like to lose.
If he were to buy preferred shares, what would pricing, terms, etc. look like? For the record, it would be a ringing endorsement that would have the longs breathe a sign of relief.
We will see how hot the fire is this week.
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Post by Deleted on Jan 10, 2016 17:05:44 GMT -5
Terms of the authorize shares have not been spelled out. So at this point terms could be determined as needed.
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Post by kbrion77 on Jan 10, 2016 17:24:20 GMT -5
MannKind is authorized to issue 10,000,000 preferred shares. Al could purchase those shares and provide sufficient cash for several years to get through this transition period. I believe the Tel-Aviv Stock Exchange prohibits companies listed on their exchange to have more than one class of capital stock. I really hope we start getting some transparency from Duane starting Wednesday. I want to ask Matt about what he meant when (maybe Q2 or Q3 call) someone asked him about Sanofi buying into MNKD or up to the 5% level and his answer was, "not yet". If we don't start getting some transparency things will get way worse than where they are today.
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Post by mnkdfann on Jan 10, 2016 17:54:42 GMT -5
Since we're all about spending Al's money for him, I wonder if I should ask him to buy me a new car.
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Post by mnkdfann on Jan 10, 2016 21:17:10 GMT -5
MannKind is authorized to issue 10,000,000 preferred shares. Al could purchase those shares and provide sufficient cash for several years to get through this transition period. I believe the Tel-Aviv Stock Exchange prohibits companies listed on their exchange to have more than one class of capital stock. "Government regulations and the rules of stock exchanges may either encourage or discourage the issuance of publicly traded preferred shares. In many countries, banks are encouraged to issue preferred stock as a source of Tier 1 capital. On the other hand, the Tel Aviv Stock Exchange prohibits listed companies from having more than one class of capital stock." Well, so much for the 'issuance of preferred shares' Hail Mary play. On the basis of this latest news, I may ask Al for 2 cars as it seems he will be able to afford it.
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Post by afrizzle on Jan 11, 2016 5:22:45 GMT -5
I think it's premature to talk about recapitalization. Matt just told us we have some runway
Let's see what DD has to say in the 13th,
We don't yet know where things are headed (go it alone, sell afrezza, sell the company, sign a new app imminently, or have nothing going)
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Post by Deleted on Aug 9, 2017 11:55:10 GMT -5
Problem resolved with the delisting from TASE.
If they offer the preferred to retail investors with a modest interest rate I will load up.
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Post by mango on Aug 9, 2017 12:06:40 GMT -5
Problem resolved with the delisting from TASE. If they offer the preferred to retail investors with a modest interest rate I will load up. How do the preferred shares work?
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Post by Deleted on Aug 9, 2017 12:26:23 GMT -5
Preferred shares rank below debt and above common shares. They generally offer interest and/or a conversion to common.
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Post by matt on Aug 9, 2017 13:01:28 GMT -5
Problem resolved with the delisting from TASE. If they offer the preferred to retail investors with a modest interest rate I will load up. How do the preferred shares work? There are no set rules on how preferred shares work. Some of the more commonly seen terms are: - Preference over common to receive a return of capital if the company liquidates (but still subordinate to creditors). - A set dividend percentage, which may or may not be cumulative, and which has to be paid in full before common can get any dividends. - An option to convert the face value of the shares, and sometimes the accrued but unpaid dividends, to common stock at a set ratio. - Preferred can vote separately from common on certain corporate actions, effectively giving preferred a veto over common shareholders. - A stated value or par value that is different from common, especially if there is a stated dividend. - Preferred stock may be redeemable by the company at a set premium over the stated value if not earlier converted. - There may be a requirement to redeem all preferred before the company can repurchase its own shares or pay any dividends to common. The exact rights of the preferred shareholders will be set forth by the board in a "Certificate of Designation" before any shares are issued, and the certificate will contain whatever provisions the board decides. The shares can be registered like the common, or can be unregistered (which is less likely). Generally conversion to a registered common share is the way a preferred holder can be guaranteed liquidity if the shares are not registered, but since MNKD is short on issuable authorized common shares there would have to be a shareholder meeting to approve more shares. Preferred stock may also have a much higher price tag than common, such as a stated value of $1,000 per share with a cumulative dividend of 5% (for example). If the company sets a high price like that, the preferred could work almost like a subordinated bond, and with 10 million shares issuable a stated value of $1,000 would generate a lot of potential capital. As an example, a sale of 50,000 preferred shares at $1,000 each would generate $50 million in financing (minus any discounts and fees) and there would still be another 9,950,000 shares available to issue. What shape all this takes all depends on the certificate of designation says; at the other extreme the stated or par value could be set at $1 and the company could only raise $10 million before running out of shares. You just have to wait and see what the board decides.
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Post by dreamboatcruise on Aug 9, 2017 13:08:02 GMT -5
Were the preferred shares mentioned on call hypothetical ones to be created or ones already in existence with known terms?
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Post by matt on Aug 9, 2017 13:17:19 GMT -5
Were the preferred shares mentioned on call hypothetical ones to be created or ones already in existence with known terms? The preferred shares exist in that they are already authorized (just look at the equity section of the balance sheet). However, usually the exact terms are left open until the certificate of designation is filed with the Secretary of State. You would have to dig through the articles of incorporation to determine if any limits were placed on the preferred, but normally the terms are left empty to be set in the future as the discretion of the board of directors.
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Post by dreamboatcruise on Aug 9, 2017 17:26:10 GMT -5
I look forward to the extinction of shorting in MNKD long before 2030
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Post by liane on Aug 10, 2017 17:44:28 GMT -5
OK - can we please stay on the topic of "Preferred Shares"? I've returned the useful posts (1 page out of 6) to this forum. Please stay on topic. No name calling, personal attacks etc. --- or I will shut it down.
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