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Post by kdaddyfresh2000 on Feb 6, 2016 22:01:55 GMT -5
BK is approaching if there is nor more cash in 6 months. Matt gave no roadmap past that 6 months. The promise to address this at the CC is just a bid to buy more time IMO. Even if he did "assure" us as in the past, see Exhibit A (dilution debacle to pay back loan) and Exhibit B (TASE debacle).
It seems like everything financial or business-related is ridiculously complicated/convoluted with this company. See Sanofi partnership contract for Exhibit C. It is very distressing to have this sentiment regarding the leadership.
So lets be honest, we are left with Al. Again.
What incentive does Al have to avoid Mannkind BK with yet another loan when his fortune is down 80-90% and $1billion. Why shouldnt he cut his losses and take care of his family? Seriously. Have alot of his personal friends taken a bath like us as investors? Anyone know? The desire to help his personal friends may be a good enough incentive...
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Post by sportsrancho on Feb 6, 2016 22:32:56 GMT -5
His friends that bought in at 5 dollars a share before the IPO are still holding. Even the family members that didn't have the money then, that bought after the IPO at 18 dollars a share have not sold. Hope that helps.
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Post by kc on Feb 7, 2016 0:15:53 GMT -5
BK is approaching if there is nor more cash in 6 months. Matt gave no roadmap past that 6 months. The promise to address this at the CC is just a bid to buy more time IMO. Even if he did "assure" us as in the past, see Exhibit A (dilution debacle to pay back loan) and Exhibit B (TASE debacle). It seems like everything financial or business-related is ridiculously complicated/convoluted with this company. See Sanofi partnership contract for Exhibit C. It is very distressing to have this sentiment regarding the leadership. So lets be honest, we are left with Al. Again. What incentive does Al have to avoid Mannkind BK with yet another loan when his fortune is down 80-90% and $1billion. Why shouldnt he cut his losses and take care of his family? Seriously. Have alot of his personal friends taken a bath like us as investors? Anyone know? The desire to help his personal friends may be a good enough incentive... Seems like a rehashing of many similar threads since January 5th. The simple answer is that most of Al's shares are Common shares. They are not preferred stock. So in a bankruptcy the common shareholder gets wiped out in favor of several other classes. Note holders and folks who are collateralized with property or patents, secured debt holders come before Common shareholders. So If Al and friend's hold more than 40% of the shares they get wiped out to ZERO. Will Al want to suffer that loss personally? or as Sports said he has many friends and family holding shares at pps up to 18.00. I have worked hard to average down and still would have to hit $6.50 to get whole.
I know that Al does hold some secured notes-- not sure what that amount might be but his common shares are the biggest part of his MannKind investment.
I personally see a sale ahead or a new partner of strength buying into MannKind. Perhaps I have rose colored glasses on as if there was a bankruptcy than myself and many other will have the biggest lost in their investing history. I for one believe that will not happen.
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Post by benyiju on Feb 7, 2016 2:48:26 GMT -5
His friends that bought in at 5 dollars a share before the IPO are still holding. Even the family members that didn't have the money then, that bought after the IPO at 18 dollars a share have not sold. Hope that helps. It might, but first you need to explain how we can know that. Has Al said something to that effect? |
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Post by LosingMyBullishness on Feb 7, 2016 4:00:14 GMT -5
I struggle to identify the motive and reasoning with this post. And the rhetoric 'let's be honest' is a standard intro into an unproven statement. I also find the focus of many on a BK irrational. The risk that is left for most investors have become small and the probability of at least one other TS deal or a jump in sales is higher than before. And about Al Mann..if he would have wanted to inject more money, why didn't he already do so? This would have improved both stock price for another offering and the situation in negotiations. Improving latter is of tremendous importance for future cashflow, which again drives share price.
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Post by sportsrancho on Feb 7, 2016 7:12:26 GMT -5
His friends that bought in at 5 dollars a share before the IPO are still holding. Even the family members that didn't have the money then, that bought after the IPO at 18 dollars a share have not sold. Hope that helps. It might, but first you need to explain how we can know that. Has Al said something to that effect? I know it because I know the people that are holding. Just like they did with MimiMed and his other company's. Al has maybe not helped with the debt because he doesn't think he will have to. Because of a deal or sale like kc says. JMHO |
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Post by kball on Feb 7, 2016 7:28:55 GMT -5
^ Would welcome this.
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Post by mnholdem on Feb 7, 2016 7:43:41 GMT -5
I think that maybe some may be mistakenly thinking that Al Mann's average share cost is much higher than it is and that his investment is down 80%-90% like those who bought in at ADCOM. Regardless, there are other options available for getting cash. For example I know of a drug development company that secured $500 million to finance Phase II trials in exchange for 3%-5% royalty when (if) that drug goes to market. My point is that Dr Mann still has plenty of wealth, but there are many other options available than for Al to pump more cash into the company.
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Post by daduke38 on Feb 7, 2016 9:01:25 GMT -5
I don't know if this was meant to be a positive but the following quote from the CC from Matt P does concern me: "Bankruptcy is a path of absolute last resort and not one under consideration at this time". Of course it should be a last resort, but those last 3 words (wish he would have left those 3 words out) are possibly telling that they don't have the cash concern figured out yet.
I think the clinics especially, and some of the other things Matt talked about sounded promising in the long run, but do we have a long run is my only concern?
I 100% believe in this product and TS, but that comment did not make me feel real warm and fuzzy. Add that to we are still stuck with SNY for this entire quarter which basically is doing nothing but burning $........ How do we last to get to where the ideas can generate the needed cash?
I want this to succeed on so many different levels (diabetics, investors, future users, of TS, shorts, competing BP's. etc) but the cash thing , I don't know?
They get that straight and I buy a ton more and wait this out!!!!
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Post by garrett on Feb 7, 2016 9:52:18 GMT -5
BK is approaching if there is nor more cash in 6 months. Matt gave no roadmap past that 6 months. The promise to address this at the CC is just a bid to buy more time IMO. Even if he did "assure" us as in the past, see Exhibit A (dilution debacle to pay back loan) and Exhibit B (TASE debacle). It seems like everything financial or business-related is ridiculously complicated/convoluted with this company. See Sanofi partnership contract for Exhibit C. It is very distressing to have this sentiment regarding the leadership. So lets be honest, we are left with Al. Again. What incentive does Al have to avoid Mannkind BK with yet another loan when his fortune is down 80-90% and $1billion. Why shouldnt he cut his losses and take care of his family? Seriously. Have alot of his personal friends taken a bath like us as investors? Anyone know? The desire to help his personal friends may be a good enough incentive... I am not sure why bankruptcy is continuing to be mentioned on this board. Mannkind's potential upcoming problem would be one of operating cash first - not creditors attacking their assets who need to be stayed by the court. A bankruptcy filing, in and of itself, does nothing to resolve their potential working capital problem. With that said, MannKind could amend it's self offering and raise 400 million dollars now by selling an additional 400 million shares. Granted, that would dilute exiting shareholders by 100%, but I would rather see this then have them run out of cash and never realize the full potential of their product offerings. |
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Post by kc on Feb 7, 2016 10:22:38 GMT -5
Garrett that is why a Sale of the Company or Afrezza is necessary. You can't just further dilute the shares. Adding 400 million shares would drive the company to bankruptcy. The real answer is take this valuable product in Afrezza and sell it to a Pharma committed. My view is the entire company should be sold to get the maximum potential of the patents that MannKind holds. It take money to move forward and you can't continue to do it on a shoestring. This company was destroyed financially in 2010 when the Martin Shekreli letter was sent the FDA. That is when the company started having serious money issue. That guy hopefully will burn in Hell but until then MannKind needs to survive to insure that Afrezza becomes a game changer for Diabetes.
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Post by Deleted on Feb 7, 2016 10:25:29 GMT -5
I think that maybe some may be mistakenly thinking that Al Mann's average share cost is much higher than it is and that his investment is down 80%-90% like those who bought in at ADCOM. Regardless, there are other options available for getting cash. For example I know of a drug development company that secured $500 million to finance Phase II trials in exchange for 3%-5% royalty when (if) that drug goes to market. My point is that Dr Mann still has plenty of wealth, but there are many other options available than for Al to pump more cash into the company. care to disclose the company? |
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Post by matt on Feb 7, 2016 10:42:52 GMT -5
I am not sure why bankruptcy is continuing to be mentioned on this board. Mannkind's potential upcoming problem would be one of operating cash first - not creditors attacking their assets who need to be stayed by the court. The issue is with some of the secured debt. The assets that secure the debt are not protected in bankruptcy and the secured party has the right to move against the collateral whether the company is BK or not. This is similar to an individual; it doesn't matter if you are personally bankrupt or not; the bank can still foreclose on your mortgage and take your house. A bankruptcy can stay that for a few weeks, but the bank will almost always win. In MNKD's case, Deerfield has rights to the production facility and enough IP to keep making Afrezza, and they have a security interest in the last $25 million of cash. Deerfield plays hardball and that could be enough to end MNKD as you know it.
As for Al, it is hard to say what will happen. On the one hand he might look at the situation and conclude that he is throwing good money after bad and shut off the taps. That is what a rational businessman would do if he though the situation hopeless. In the alternative, he might decide that letting the company go BK is the best thing and he can then step in and buy up the assets at the BK auction for less money then he would have to inject to save MNKD. The better question to ask is what motivation he has to keep MNKD running as is. He can always give shares to his friends and family if he starts a new company with the assets, so why should he bail out all the retail common? If he does that then he is a REALLY nice guy.
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Post by Deleted on Feb 7, 2016 10:46:28 GMT -5
I am not sure why bankruptcy is continuing to be mentioned on this board. Mannkind's potential upcoming problem would be one of operating cash first - not creditors attacking their assets who need to be stayed by the court. The issue is with some of the secured debt. The assets that secure the debt are not protected in bankruptcy and the secured party has the right to move against the collateral whether the company is BK or not. This is similar to an individual; it doesn't matter if you are personally bankrupt or not; the bank can still foreclose on your mortgage and take your house. A bankruptcy can stay that for a few weeks, but the bank will almost always win. In MNKD's case, Deerfield has rights to the production facility and enough IP to keep making Afrezza, and they have a security interest in the last $25 million of cash. Deerfield plays hardball and that could be enough to end MNKD as you know it.
As for Al, it is hard to say what will happen. On the one hand he might look at the situation and conclude that he is throwing good money after bad and shut off the taps. That is what a rational businessman would do if he though the situation hopeless. In the alternative, he might decide that letting the company go BK is the best thing and he can then step in and buy up the assets at the BK auction for less money then he would have to inject to save MNKD. The better question to ask is what motivation he has to keep MNKD running as is. He can always give shares to his friends and family if he starts a new company with the assets, so why should he bail out all the retail common? If he does that then he is a REALLY nice guy.
. Pfeffer mentioned they only had 5 mil due this year |
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Post by Deleted on Feb 7, 2016 10:49:08 GMT -5
I am not sure why bankruptcy is continuing to be mentioned on this board. Mannkind's potential upcoming problem would be one of operating cash first - not creditors attacking their assets who need to be stayed by the court. The issue is with some of the secured debt. The assets that secure the debt are not protected in bankruptcy and the secured party has the right to move against the collateral whether the company is BK or not. This is similar to an individual; it doesn't matter if you are personally bankrupt or not; the bank can still foreclose on your mortgage and take your house. A bankruptcy can stay that for a few weeks, but the bank will almost always win. In MNKD's case, Deerfield has rights to the production facility and enough IP to keep making Afrezza, and they have a security interest in the last $25 million of cash. Deerfield plays hardball and that could be enough to end MNKD as you know it.
As for Al, it is hard to say what will happen. On the one hand he might look at the situation and conclude that he is throwing good money after bad and shut off the taps. That is what a rational businessman would do if he though the situation hopeless. In the alternative, he might decide that letting the company go BK is the best thing and he can then step in and buy up the assets at the BK auction for less money then he would have to inject to save MNKD. The better question to ask is what motivation he has to keep MNKD running as is. He can always give shares to his friends and family if he starts a new company with the assets, so why should he bail out all the retail common? If he does that then he is a REALLY nice guy.
Yeah if he is sure he is the only in the auction room and can get them for what he wanted |
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