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Post by Deleted on Feb 7, 2016 14:41:16 GMT -5
is it possible to raise capital while doing a reverse split? I was trying to find some examples but had no success. I read about a reverse split for a pharma that raised money to pay debt.
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Post by stevil on Feb 7, 2016 14:45:57 GMT -5
I'll let others speak to the technical details of that. However, Matt said that was not an option they were considering in this last CC.
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Post by Deleted on Feb 7, 2016 14:48:57 GMT -5
Yea I know he said that but without giving any information I'm forced to speculate
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Post by sportsrancho on Feb 7, 2016 14:56:40 GMT -5
You can but it would be just like doing one now. The reverse split helps not to be delisted. Nate thinks they should do one. ( I don't ), but he talks about it on ST. If you follow him it's great to read his posts every few days!
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Post by dreamboatcruise on Feb 7, 2016 14:57:00 GMT -5
Come on guys! This thread is all just an exercise in mental masturbation. Matt could not have been more clear. MNKD is not going BK! His statement was definitive. Of course he cannot say what will or will not happen a year from now - nobody can. Debt is currently being re-negotiated. Overhead (cash burn) is being appropriately adjusted. There is simply no justification for this ongoing speculation. Let's try to be reasonable and a little more positive, please. Yes, you are indeed engaging in some fantasizing if you think Matt could, or did, promise bankruptcy isn't a possibility. Tons of companies go bankrupt and it isn't because they wanted to. Matt certainly is hoping that doesn't happen and I'm sure it is true they aren't at the point of planning for it... which is all that he said. There is only so far overhead can be cut. MNKD cannot get their cash burn to anywhere near the level that it would be covered by the revenue as it currently stands. Sorry, risk of bankruptcy is a very real part of the investing equation for MNKD. Trying to suppress that reality would be doing a disservice to those that might currently be looking to buy shares. There could be a big payoff if MNKD manages to thread the needle and survive, but it has to be weighed against the possibility they do not. |
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Post by stevil on Feb 7, 2016 14:59:16 GMT -5
Not sure what you mean... We don't have to speculate because Matt gave us this information when he said they weren't going to do it.
My guess is they don't want to raise the SP for the shorts to knock it back down. It's probably the fastest way to devalue our company at this point. It could go well, but it could also be disastrous. They probably figure it's better to just leave things where they are at the moment since the short interest is still so high.
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Post by kball on Feb 7, 2016 15:08:06 GMT -5
Come on guys! This thread is all just an exercise in mental masturbation. Matt could not have been more clear. MNKD is not going BK! His statement was definitive. Of course he cannot say what will or will not happen a year from now - nobody can. Debt is currently being re-negotiated. Overhead (cash burn) is being appropriately adjusted. There is simply no justification for this ongoing speculation. Let's try to be reasonable and a little more positive, please. The truth isn't nearly so clear. The fact is some folks see the dreamboat as half full, others see the dreamboat as half empty. (I'm in the half-empty camp, but have only just last week sold 25% of my position). |
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Post by stevil on Feb 7, 2016 15:25:56 GMT -5
For me it's not even the dreamboat being half full or half empty. When the water is overflowing onto the boat and you don't have a plan to get it out so you can stay afloat, it doesn't really matter how you want to look at the situation... if you want to say the boat is almost full or not fully full. You're still going to sink if you don't fix the problem...
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Post by Deleted on Feb 7, 2016 15:34:41 GMT -5
You can but it would be just like doing one now. The reverse split helps not to be delisted. Nate thinks they should do one. ( I don't ), but he talks about it on ST. If you follow him it's great to read his posts every few days! I've read his comments on reverse split and delisting. He made one comment about not remembering how delisting works or the last time there was a successful reverse split. I don't want a reverse split. I just want to know if it's possible to do a rs and then do an offering at that higher price to generate cash. |
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Post by Deleted on Feb 7, 2016 15:39:52 GMT -5
Not sure what you mean... We don't have to speculate because Matt gave us this information when he said they weren't going to do it. My guess is they don't want to raise the SP for the shorts to knock it back down. It's probably the fastest way to devalue our company at this point. It could go well, but it could also be disastrous. They probably figure it's better to just leave things where they are at the moment since the short interest is still so high. We are left guessing regardless of what he said. Nothing concrete was given. What value and what's not disastrous about our current situation? Shorts are in control now, next week, and 6 months from now outside of some dynamite news. We need cash. So if they can do a reverse split and then raise cash I don't understand why they would be against it. Unless there is something up his sleeve but I'm annoyed that I'm stuck guessing |
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Post by me on Feb 7, 2016 15:41:02 GMT -5
@reverselo, do you think that more money can be raised if they do a RS and then offer at that higher resulting share price?!
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Post by Deleted on Feb 7, 2016 15:42:41 GMT -5
@reverselo , do you think that more money can be raised if they do a RS and then offer at that higher resulting share price?! No clue I'm asking if it's possible. I have no idea if it's possible |
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Post by stevil on Feb 7, 2016 15:43:10 GMT -5
Ya, that was kind of what I was eluding to ^ what me said.
I don't think anyone will want to buy this stock at a higher price, nor would shareholders be happy if they allowed the shorts to depreciate their money even further.
Someone wouldn't be too bright if they paid several dollars per share for this stock right now... They'd lose that value in no time.
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Post by nylefty on Feb 7, 2016 15:45:20 GMT -5
Come on guys! This thread is all just an exercise in mental masturbation. Matt could not have been more clear. MNKD is not going BK! His statement was definitive. Of course he cannot say what will or will not happen a year from now - nobody can. Debt is currently being re-negotiated. Overhead (cash burn) is being appropriately adjusted. There is simply no justification for this ongoing speculation. Let's try to be reasonable and a little more positive, please. I'm not trying to infuse negativity into the board, just reality. Matt said that "at this time" BK was not an option and would be a last resort- he never said MNKD wasn't going BK. While it's very possible that the debt will be restructured and operating expenses reduced (my guess is there will be more layoffs... since that's the easiest thing to control. Still don't understand the Hakan severance/retirement package, but that's another issue for another day) There absolutely is justification for the ongoing speculation. Money doesn't grow on trees and won't fall from the sky. While I agree with you that it may be mental masturbation to keep dwelling on the "how" we'll stay alive or "what" will eventually become of us, it very much is a topic that can and should be discussed. But it is all speculation at this point because Matt did not outline his plan for how he would get us to the lands of profitability. We're casting our sails to the winds of the diabetes clinics and the milestones from our recent deal as well as the hopes of making more TS deals. But it's a very real issue that as of now, we do not have enough money to successfully run this company past 6 months. For the record: I don't want BK or a sale. I would love for Al to step up and keep funding this. But there are so many extra variables that go into all of this- As Al has admitted to not knowing beforehand. So it's not a foregone conclusion that he will keep stepping up, or that it will lead us to success even if he does. So my arguments are more negative than my hopes because I don't think it's as likely as other people on here who keep saying Al will keep writing blank checks. No one has heard from him in months and no one really even knows how much he has left in his piggy bank even if he did want to keep funding us. One of my investment rules: Don't take investment advice from college students who don't know the difference between the roles of the Federal Reserve and Congress. |
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Post by Deleted on Feb 7, 2016 15:46:00 GMT -5
I thought I read an article about a pharma that did a rs and paid down debt at same time but I could be totally wrong and I can't remember the name of the company
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