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Post by jred on Aug 17, 2017 6:15:58 GMT -5
The agreement on the TASE listing restricted Mannkind to one class of stock. I believe that stays in effect until the delisting in Nov, so no preferred issue until then.
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Post by lakon on Aug 17, 2017 10:05:18 GMT -5
The agreement on the TASE listing restricted Mannkind to one class of stock. I believe that stays in effect until the delisting in Nov, so no preferred issue until then. Sure the restriction probably does stay in effect, but the question is who cares? TASE probably cares from the perspective of Cartman: "Respect My Authoritah!!" That said, they probably don't really care since they are finance guys who understand time is money AND MNKD is leaving anyway. What could they do? Speed up the delisting. We have an expression for that: Go fuck yourself! Anytime I've ever been around finance, it always seemed expediency wins the day. I'm thinking MNKD does a private placement in the US market OR swaps debt for preferred OR a rights offering OR combination thereof. The rights offering could be complicated due to TASE, but they can always offer direct. TASE sure was not a big help so I don't see why MNKD would be overly concerned about the impact of what happens there at this point. Rights offerings tend to work well for cult stocks... www.youtube.com/watch?v=XbebjUYItKw
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Post by traderdennis on Aug 17, 2017 11:23:27 GMT -5
The agreement on the TASE listing restricted Mannkind to one class of stock. I believe that stays in effect until the delisting in Nov, so no preferred issue until then. Sure the restriction probably does stay in effect, but the question is who cares? TASE probably cares from the perspective of Cartman: "Respect My Authoritah!!" That said, they probably don't really care since they are finance guys who understand time is money AND MNKD is leaving anyway. What could they do? Speed up the delisting. We have an expression for that: Go fuck yourself! Anytime I've ever been around finance, it always seemed expediency wins the day. I'm thinking MNKD does a private placement in the US market OR swaps debt for preferred OR a rights offering OR combination thereof. The rights offering could be complicated due to TASE, but they can always offer direct. TASE sure was not a big help so I don't see why MNKD would be overly concerned about the impact of what happens there at this point. Rights offerings tend to work well for cult stocks... www.youtube.com/watch?v=XbebjUYItKwNot a lot of difference for MNKD, an issue for who would be taking the private placement or debt swap.
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Post by Deleted on Oct 3, 2017 7:08:34 GMT -5
Is there anything preventing the issuance of these preferred shares. If not, they should offer the ten million shares @ $100 with a modest interest rate and end this overhang once and for all.
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Post by agedhippie on Oct 3, 2017 7:23:57 GMT -5
Is there anything preventing the issuance of these preferred shares. If not, they should offer the ten million shares @ $100 with a modest interest rate and end this overhang once and for all. I am sure you have an aswer to this because it is so obviously bait, but I will ask! Why would anyone pay $100 for prefs paying a modest percentage? I cannot think of any company where the prefs are priced any where near that ratio. Prefs don't appreciate like normal stock because the payout is defined (x% of the pref share strike price)
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Post by Deleted on Oct 3, 2017 7:34:15 GMT -5
I don't have the answer. In my opinion preferred shares are a hybrid of debt. The price of the preferred has nothing to do with common. If they offered one million @ $100 with say a 6%, that would eliminate bankruptcy concerns and MannKind would free itself from Wall Street.
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Post by Deleted on Oct 3, 2017 8:19:50 GMT -5
I don't have the answer. In my opinion preferred shares are a hybrid of debt. The price of the preferred has nothing to do with common. If they offered one million @ $100 with say a 6%, that would eliminate bankruptcy concerns and MannKind would free itself from Wall Street. I want to believe so, but I think Wall Street in regards to MNKD, they're butt hurt. They can not/ could not kill it. And now, new label, growing rxs they hate MNKD even more. Wall Street's feeling toward us. Mannkind... will die. As will your friends. Good, I can feel your anger. I am defenceless. Take your weapon. Strike me down with all of your hatred and your journey towards the dark side will be complete! Love the battle.
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Post by jred on Oct 3, 2017 9:29:15 GMT -5
The TASE shares don't delist until Nov 7, so they have to wait until at least then to issue preferred. Unlikely Mannkind can find a buyer without a convertible feature to the preferred shares. If convertible, the $ amount they can raise will be limited by authorized and available shares. Through the warrant for share exchange they freed up 8.4 million so they now have 22 million possible. Therefore the max $ they can raise right now would be the agreed upon convertible price times 22 million.
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Post by jred on Oct 3, 2017 9:32:57 GMT -5
That's why I speculated before that if they are going for a bigger raise with the preferred, they might strike a deal with a buyer(s) and then ask for a shareholder vote to increase authorized share count.
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Post by traderdennis on Oct 3, 2017 9:57:35 GMT -5
I don't have the answer. In my opinion preferred shares are a hybrid of debt. The price of the preferred has nothing to do with common. If they offered one million @ $100 with say a 6%, that would eliminate bankruptcy concerns and MannKind would free itself from Wall Street. That would kick the can less than a year. With a burn rate of just under 7mm and some of the 150mm in debt due would eat up that money quickly. Kastanes I believe you are the only one who would buy at 100 per share with a six percent coupon. I don't believe you have funds to back it up
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Post by jred on Oct 3, 2017 10:20:17 GMT -5
If management is confident sales are going to continue to increase and anticipate other positive developments on the horizon they wouldn't want to fully recapitalize through dilution right now at current share price. And as a shareholder I don't want them to either. Granted it's a fine line to walk and I would agree they have not been aggressive enough in the past to raise cash and shareholders have paid the price. As we have seen, debt principle repayments can be extended or entirely replaced with new agreements and I'm sure current management has already reached out to those holders to gauge their openness. I have no idea and wouldn't speculate on the probability of that happening, but I do have more confidence in the new management's team to better manage the possibilities.
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Post by cjm18 on Oct 3, 2017 10:24:38 GMT -5
If management is confident sales are going to continue to increase and anticipate other positive developments on the horizon they wouldn't want to fully recapitalize through dilution right now at current share price. And as a shareholder I don't want them to either. Granted it's a fine line to walk and I would agree they have not been aggressive enough in the past to raise cash and shareholders have paid the price. As we have seen, debt principle repayments can be extended or entirely replaced with new agreements and I'm sure current management has already reached out to those holders to gauge their openness. I have no idea and wouldn't speculate on the probability of that happening, but I do have more confidence in the new management's team to better manage the possibilities. Bingo. If management expects the share price to go up either from sales or Some deal or other catalyst then they will dilute less now and more later. Not announcing dilution yesterday is somewhat bullish.
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Post by babaoriley on Oct 3, 2017 10:44:30 GMT -5
I don't have the answer. In my opinion preferred shares are a hybrid of debt. The price of the preferred has nothing to do with common. If they offered one million @ $100 with say a 6%, that would eliminate bankruptcy concerns and MannKind would free itself from Wall Street. Kastanes, if our new CFO could work such a deal, he would have the moniker "Saint" before his name.
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Post by Deleted on Oct 3, 2017 11:56:39 GMT -5
Unfortunately, with a negative retained earnings I don't think it is possible to offer a dividend paying preferred.
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Post by Deleted on Nov 8, 2017 12:06:27 GMT -5
Once the shelf is approved MannKind can offer a conversion feature with the preferred without having to dilute until converted.
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