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Post by lakon on Aug 8, 2019 6:44:11 GMT -5
MNKD just finished recapitalization. I think now is a perfect time to rehash this argument. They are on firmer ground than they have been since I originally asked this question over three years ago.
At the end of the quarterly conference call yesterday, CEO MC said something that seemed odd to me about now he can focus on getting new investors. Okay. Why? How? Follow the KISS Principle. I'd like to see the company float the idea of a rights offering to gauge how serious their current investors (owners) are to back the company today. As I said over three years ago, I am ready to pony up more funds today. Where do I sign?
The recapitalization bought us time, but not enough in my opinion. I'm tired of waiting. I want to see action on all fronts, and the kind of action and growth that I expect will cost more money. Dilution is getting old. At least ask your shareholders if they still believe in a bright future.
Here's what I want to see in broad strokes.
1. I want a rights offering for a special class of stock along with warrants. 2. I want the offer structured so that I can double my position today with the option for a triple within 7 years. 3. I want the special class restricted in some manner so that it cannot be loaned for selling short, possibly something like ownership rights held in escrow that are not registered for trading on any market. (If structured well, this action could be devastating to any short position. Thus fight fire with fire through financial engineering.)
4. Offer direct and nontransferable rights to existing shareholders, but allow over subscription to realign with investors who are true owners. (This lets a shareholder avoid dilution and even grow his ownership stake, if he wants, while others can walk away. It also affords MNKD the largest capital investment with minimal fees going to underwriters or the Street.)
5. Raise $200-400MM with an option for another similar raise within 7 years. 6. Use of the proceeds will be for expediting the pipeline development and expansion along with marketing Afrezza. PERIOD. 7. Spin out wholly owned subsidiaries and/or partnerships for each new pipeline API so that each candidate can raise its own capital, either in the capital markets (IPO's) or Initial Coin Offerings (ICO's).
When the rules are not working for you, don't play by them. Change the rules!
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Post by boca1girl on Aug 8, 2019 8:07:45 GMT -5
Lakon, I hope/expect you will send this to MC directly for a response. I’m very interested in hearing what he/BOD has to say.
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Post by lakon on Aug 8, 2019 10:56:21 GMT -5
If anyone wants to send to MC, you have my blessing. Perhaps you will get a response better than I.
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Post by Thundersnow on Aug 8, 2019 11:35:33 GMT -5
MNKD just finished recapitalization. I think now is a perfect time to rehash this argument. They are on firmer ground than they have been since I originally asked this question over three years ago.
At the end of the quarterly conference call yesterday, CEO MC said something that seemed odd to me about now he can focus on getting new investors. Okay. Why? How? Follow the KISS Principle. I'd like to see the company float the idea of a rights offering to gauge how serious their current investors (owners) are to back the company today. As I said over three years ago, I am ready to pony up more funds today. Where do I sign?
The recapitalization bought us time, but not enough in my opinion. I'm tired of waiting. I want to see action on all fronts, and the kind of action and growth that I expect will cost more money. Dilution is getting old. At least ask your shareholders if they still believe in a bright future.
Here's what I want to see in broad strokes.
1. I want a rights offering for a special class of stock along with warrants. 2. I want the offer structured so that I can double my position today with the option for a triple within 7 years. 3. I want the special class restricted in some manner so that it cannot be loaned for selling short, possibly something like ownership rights held in escrow that are not registered for trading on any market. (If structured well, this action could be devastating to any short position. Thus fight fire with fire through financial engineering.)
4. Offer direct and nontransferable rights to existing shareholders, but allow over subscription to realign with investors who are true owners. (This lets a shareholder avoid dilution and even grow his ownership stake, if he wants, while others can walk away. It also affords MNKD the largest capital investment with minimal fees going to underwriters or the Street.)
5. Raise $200-400MM with an option for another similar raise within 7 years. 6. Use of the proceeds will be for expediting the pipeline development and expansion along with marketing Afrezza. PERIOD. 7. Spin out wholly owned subsidiaries and/or partnerships for each new pipeline API so that each candidate can raise its own capital, either in the capital markets (IPO's) or Initial Coin Offerings (ICO's).
When the rules are not working for you, don't play by them. Change the rules!
Mike's comment refers to getting Top Tier Investors. They want Goldman, JP Morgan and others to be interested in MNKD. Now that MNKD is out of the danger zone (Deerfield's TOXIC wrath) they can go out and tell the story of MNKD. Remember back in the day MNKD had Top Tier Interest but that quickly faded when Sanofi terminated their deal. Now Investor Relations will have to earn their pay and sign MNKD up to a host of Investor Conferences. |
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Post by sportsrancho on Aug 8, 2019 12:32:07 GMT -5
MNKD just finished recapitalization. I think now is a perfect time to rehash this argument. They are on firmer ground than they have been since I originally asked this question over three years ago.
At the end of the quarterly conference call yesterday, CEO MC said something that seemed odd to me about now he can focus on getting new investors. Okay. Why? How? Follow the KISS Principle. I'd like to see the company float the idea of a rights offering to gauge how serious their current investors (owners) are to back the company today. As I said over three years ago, I am ready to pony up more funds today. Where do I sign?
The recapitalization bought us time, but not enough in my opinion. I'm tired of waiting. I want to see action on all fronts, and the kind of action and growth that I expect will cost more money. Dilution is getting old. At least ask your shareholders if they still believe in a bright future.
Here's what I want to see in broad strokes.
1. I want a rights offering for a special class of stock along with warrants. 2. I want the offer structured so that I can double my position today with the option for a triple within 7 years. 3. I want the special class restricted in some manner so that it cannot be loaned for selling short, possibly something like ownership rights held in escrow that are not registered for trading on any market. (If structured well, this action could be devastating to any short position. Thus fight fire with fire through financial engineering.)
4. Offer direct and nontransferable rights to existing shareholders, but allow over subscription to realign with investors who are true owners. (This lets a shareholder avoid dilution and even grow his ownership stake, if he wants, while others can walk away. It also affords MNKD the largest capital investment with minimal fees going to underwriters or the Street.)
5. Raise $200-400MM with an option for another similar raise within 7 years. 6. Use of the proceeds will be for expediting the pipeline development and expansion along with marketing Afrezza. PERIOD. 7. Spin out wholly owned subsidiaries and/or partnerships for each new pipeline API so that each candidate can raise its own capital, either in the capital markets (IPO's) or Initial Coin Offerings (ICO's).
When the rules are not working for you, don't play by them. Change the rules!
Mike's comment refers to getting Top Tier Investors. They want Goldman, JP Morgan and others to be interested in MNKD. Now that MNKD is out of the danger zone (Deerfield's TOXIC wrath) they can go out and tell the story of MNKD. Remember back in the day MNKD had Top Tier Interest but that quickly faded when Sanofi terminated their deal. Now Investor Relations will have to earn their pay and sign MNKD up to a host of Investor Conferences. Exactly |
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Post by ktim on Aug 8, 2019 16:57:47 GMT -5
I've never experienced a rights offering, but assuming it has some threshold such as the deal only gets done if $100M pledged then I'd be in at current price on 1 for 1 basis... i.e. I do believe large cash infusion would make a meaningful difference. Only question is whether the bigger investors would have that same faith.
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Post by lakon on Aug 11, 2019 3:35:40 GMT -5
I've never experienced a rights offering, but assuming it has some threshold such as the deal only gets done if $100M pledged then I'd be in at current price on 1 for 1 basis... i.e. I do believe large cash infusion would make a meaningful difference. Only question is whether the bigger investors would have that same faith. There usually is a threshold. It is wise to approach shareholders first to avoid the embarrassment of having a rights offering that gets canceled. This could be mailing shareholders a prospectus. This could be discussed as a topic at a shareholders meeting. This could be at a special meeting or added to the agenda at the ASM. There are lots of options. I have participated when offered.
EYES had one, but I was not an investor in EYES at the time. EYES is another of the Mann companies so that tells me Al Mann was not against rights offerings.
It really depends what the larger shareholders are willing and able to do, and it very well could be the limiting factor.
On the other hand, I think that a deal could be structured so that large shareholders could be made happy. Mann affiliated entities just renegotiated debt obligations, and repayment would be more likely with a large cash infusion at this time. Large shareholders might be willing to accept dilution by selling their rights to other shareholders or reduced participation, something like that.
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Post by lennymnkd on Aug 11, 2019 4:27:27 GMT -5
The Bottom Line
Investors may be tempted by the prospect of buying discounted shares with a rights issue. But it is not always a certainty that you are getting a bargain. In addition to knowing the ex-rights share price, you need to know the purpose of the additional funding before accepting or rejecting a rights issue. Be sure to look for a compelling explanation of why the rights issue and share dilution are necessary as part of a company's strategic plan. A rights issue can offer a quick fix for a troubled balance sheet, but that does not mean that management will address the underlying problems that weakened the balance sheet in the first place. Shareholders should be cautious. Sounds like more of the same🤔
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Post by sayhey24 on Aug 11, 2019 6:39:53 GMT -5
I think Mike was talk about getting Institutional investor backing now that the company is funded. "At the end of the quarterly conference call yesterday, CEO MC said something that seemed odd to me about now he can focus on getting new investors. Okay. Why? How?"
There are two buying thresholds for many funds; $3 for some; $5 for others. Its actually a little surprising Vanguard still has the holds they have as their standard policy is $5.
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Post by mnholdem on Aug 11, 2019 9:37:04 GMT -5
Another (preferred) type of non-dilutive investor would be one that collaborates in the development of pipeline drugs. Upfront $ and shouldering development costs. Castagna impressed me with the United Therapeutics deal. Obviously he hopes to get more investors of that type, as do most shareholders IMO.
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Post by markado on Aug 12, 2019 8:23:19 GMT -5
I am all for whatever financial orchestration that can be effected that could prove remunerating to LTSs and utterly disruptive to shorting strategies. Specifically, I believe we need to enact a strategy that supports the conversion of the December 2019 Warrants: 1) because they are already priced in, and, 2) because we could use the resulting capital. If nothing demonstrative, purposeful and effective is done to counteract the short strategy running up to December, or, if the share price is not comfortably at or over $2.60, I believe the shorts will do everything in their power to choke the life out of that opportunity.
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Post by matt on Aug 12, 2019 8:59:44 GMT -5
I think Mike was talk about getting Institutional investor backing now that the company is funded. "At the end of the quarterly conference call yesterday, CEO MC said something that seemed odd to me about now he can focus on getting new investors. Okay. Why? How?" There are two buying thresholds for many funds; $3 for some; $5 for others. Its actually a little surprising Vanguard still has the holds they have as their standard policy is $5. The minimum price standard for most managed funds is $5, but the Form 13 reports combine all the funds that are managed under a single umbrella company. What gets reported as Vanguard holdings is their managed funds as well as self-directed funds, brokerage-type account that are held at Vanguard, and index trackers. Only the managed funds are subject to share price minimums; the self-directed funds can invest in whatever the holder determines. Vanguard likely offers one or more index tracking funds as well, and those funds track whatever is in the index regardless of PPS. The same applies to the other major financial houses (Fidelity (FMR), State Street, Blackrock, major brokers); they offer a mix of ways to invest and they all get combined into a single institutional holding report. |
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Post by Deleted on Aug 12, 2019 12:15:44 GMT -5
I think Mike was talk about getting Institutional investor backing now that the company is funded. "At the end of the quarterly conference call yesterday, CEO MC said something that seemed odd to me about now he can focus on getting new investors. Okay. Why? How?" There are two buying thresholds for many funds; $3 for some; $5 for others. Its actually a little surprising Vanguard still has the holds they have as their standard policy is $5. Well Mike has to go to Wall Street and reintroduce them to the MNKD Story. He has to build their trust again. Wall Street has no confidence and it will take time for that to rebuild. Right now Mike and MNKD has to be consistent and NO HICCUPS. This will be a slow move NORTH.... |
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Post by ktim on Aug 12, 2019 12:39:37 GMT -5
I think Mike was talk about getting Institutional investor backing now that the company is funded. "At the end of the quarterly conference call yesterday, CEO MC said something that seemed odd to me about now he can focus on getting new investors. Okay. Why? How?" There are two buying thresholds for many funds; $3 for some; $5 for others. Its actually a little surprising Vanguard still has the holds they have as their standard policy is $5. Well Mike has to go to Wall Street and reintroduce them to the MNKD Story. He has to build their trust again. Wall Street has no confidence and it will take time for that to rebuild. Right now Mike and MNKD has to be consistent and NO HICCUPS. This will be a slow move NORTH.... Being able and willing to give revenue guidance and then meeting it might be a good step towards attracting institutional investors. |
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