|
|
Post by daduke38 on May 9, 2016 17:42:43 GMT -5
Stock offering just announced. And he didn't know that an hour ago! Think that was his near slip! Speechless beyond that! |
|
|
|
Post by tayl5 on May 9, 2016 17:43:23 GMT -5
I think MP said that there was "high interest" from potential international partners, that he wanted to raise money via international deals, but that such a deal would not be completed in the "target period for financing" (which I take to be immediately so they don't run out of money). I then understood him to say that they probably were going to be forced to do a "small equity financing" which I am guessing is $50 M, and that is the transaction he had hoped to have completed for today so he could announce it. It is my expectation that they will issue a PR very soon about details of their small equity financing and it will be slightly dilutive, and not in line with his earlier statements that they would avoid dilutive stock issuance at these prices. I hope I am wrong about this. I assume that, following the announced price for the "small equity financing" the PPS will likely drop to whatever the selling price is for that financing, but may recover in the months that follow as the launch gains traction and positive developments begin to filter in, or if they finish a settlement with SNY. There also is a possible deal with an international partner at some uncertain future point. (Many may think that Pfeffer said he was close to an international license deal, but I did not think that is what he said.) Expect an "small equity financing" shortly is what I heard. My impression was that Matt was trying to get an international licensing deal done before the call but it didn't work out. There's a big difference between the timing of a deal not working out and the deal falling apart and not happening. If it's the former, one benefit will be that the deal can be concluded with less time pressure and may lead to more favorable terms. I agree that if the expected deal is off the table and there are no other near-term candidates, an equity financing is likely. I don't think he was talking about a secondary offering not being ready. OK, never mind. It was the equity deal. Crap. |
|
|
|
Post by LosingMyBullishness on May 9, 2016 17:44:03 GMT -5
Hmm, wonder what stops the Intl partners to wait till this money has been spent. Seem to be not the nicest partners that are available right now.
|
|
|
|
Post by rockstarrick on May 9, 2016 17:50:02 GMT -5
Stock offering just announced. And he didn't know that an hour ago! Think that was his near slip! Speechless beyond that! I'm glad I waited to buy more !! I personally don't care what they do if it keeps the lights on long enough for those sales reps to hit the pavement. "Afrezza is here to stay" that's what matters most to me. Good Luck everybody. |
|
|
|
Post by uvula on May 9, 2016 17:51:36 GMT -5
Why didn't Matt mention this? Smells bad.
|
|
|
|
Post by derek2 on May 9, 2016 17:57:27 GMT -5
Stock offering just announced. Ouch. 48,543,692 shares of common stock and warrants Each share of common stock is being sold together with a warrant to purchase 0.75 of a share of common stock (A Warrants) and a warrant to purchase 0.25 of a share of common stock (B Warrants) for a combined purchase price of $1.03For $1.03 institutional investors get: 1 share of MNKD 1 warrant to buy .75 of a share with strike price of $1.50 (4 warrants let you buy 3 shares at $1.50 per share) 1 warrant to buy .25 of a share with a strike price of 1.50 (4 warrants let you buy 1 share at $1.50 per share) The 2 warrants have different vesting and expiry dates. That's quite a discount to closing price. |
|
|
|
Post by LosingMyBullishness on May 9, 2016 18:01:29 GMT -5
Stock offering just announced. And he didn't know that an hour ago! Think that was his near slip! Speechless beyond that! I assume that everything was prepared as plan B but Matt had tried till the end to get the deal done. This was why he was not that focussed during the call. Of course it is most important to be focussed during the call and that is why he screw up in the talk. I truly believe that Matt is giving everything (including his health) to make Afrezza a success. He told this to Al and he is loyal to the bone. Sadly such behaviour is often not appreciated. Everyone is used to CEO that are to various degrees huge AHs. Jobs,Gates,Welch have not been nice business men. |
|
|
|
Post by agedhippie on May 9, 2016 18:05:49 GMT -5
The Insulin Put is interesting. It mitigates about half of Mannkind's liability with Amphistar. The contract has at least another two years to run so there is an ongoing liability there. The Sanofi Supply Contract allows Mannkind to sell on 65% of that supply to Sanofi up to a $50 million cap - that's the Insulin Put.
The implications of that are that there is no cash for Mannkind coming from this, but the commitment to purchase is reduced to 35% of the original quantity (the commitment is higher over the long term since the Put is limited to $50 million so it only covers $77 million of the outstanding $98 million).
|
|
|
|
Post by LosingMyBullishness on May 9, 2016 18:05:50 GMT -5
Stock offering just announced. Ouch. 48,543,692 shares of common stock and warrants Each share of common stock is being sold together with a warrant to purchase 0.75 of a share of common stock (A Warrants) and a warrant to purchase 0.25 of a share of common stock (B Warrants) for a combined purchase price of $1.03For $1.03 institutional investors get: 1 share of MNKD 1 warrant to buy .75 of a share with strike price of $1.50 (4 warrants let you buy 3 shares at $1.50 per share) 1 warrant to buy .25 of a share with a strike price of 1.50 (4 warrants let you buy 1 share at $1.50 per share) The 2 warrants have different vesting and expiry dates. That's quite a discount to closing price. Why is that discount that high? I do not get it. That is free covering for organised shorts aka institutional investors. |
|
|
|
Post by derek2 on May 9, 2016 18:08:52 GMT -5
Ouch. 48,543,692 shares of common stock and warrants Each share of common stock is being sold together with a warrant to purchase 0.75 of a share of common stock (A Warrants) and a warrant to purchase 0.25 of a share of common stock (B Warrants) for a combined purchase price of $1.03For $1.03 institutional investors get: 1 share of MNKD 1 warrant to buy .75 of a share with strike price of $1.50 (4 warrants let you buy 3 shares at $1.50 per share) 1 warrant to buy .25 of a share with a strike price of 1.50 (4 warrants let you buy 1 share at $1.50 per share) The 2 warrants have different vesting and expiry dates. That's quite a discount to closing price. Why is that discount that high? I do not get it. That is free covering for organised shorts aka institutional investors.es Yes - those shares give a chance to cover at $1.03, and the warrants could hedge 40% of the outstanding short interest. |
|
|
|
Post by seanismorris on May 9, 2016 18:10:44 GMT -5
Wow...and we just reached my price target. And, there is the expected dilution...
To clarify, this was my buy target for 10K shares (trade). If it was announced during the call I'd execute my plan.
But Matt's credibility just took another hit.
Now the question is: Am I a gambling man?
The price of 1.03$ would be the perfect point for a technical reversal. Do you think that was an accident? MannKind just got played by a PRO!
|
|
|
|
Post by mnkdfann on May 9, 2016 18:18:01 GMT -5
Why is that discount that high? I do not get it. That is free covering for organised shorts aka institutional investors.es Yes - those shares give a chance to cover at $1.03, and the warrants could hedge 40% of the outstanding short interest. It's genius! Matt is crazy like a fox! Institutions taking advantage of this (and the discount ensures some will) to cover their many millions of shares short will be paying the money for shares straight into MNKD's coffers. Instead of just buying them on the open market. (I think I am kidding ... but who knows.) |
|
|
|
Post by LosingMyBullishness on May 9, 2016 18:18:49 GMT -5
Why is that discount that high? I do not get it. That is free covering for organised shorts aka institutional investors.es Yes - those shares give a chance to cover at $1.03, and the warrants could hedge 40% of the outstanding short interest. I learnt with MNKD that shorts always win when they are BPs. I assume that there are some small hedgies and individual shorts that might suffer at some time but the big guys always win. I just wonder who advised mnkd to give away so much warrants? Or it is to appeace the institutions? |
|
|
|
Post by uvula on May 9, 2016 18:21:22 GMT -5
Maybe the reason the institutions didn't ask where the money would come from during the Cc is because they already knew the answer.
|
|
|
|
Post by james on May 9, 2016 18:22:43 GMT -5
The writing has been on the wall for some time now. The company has been reaching close to bare minimum on cash levels. Unfortunately, the cash here barely covers 6 months operating expenses which is well below what is needed to get sales off the ground and provide any kind of relief. If I understand correctly, the warrants provide cash in the future if they are exercised. So while they represent something of a impediment to future pricing of the stock, it is also a potential future source of cash (another $75M?) and does not impact the share count for the time being. That's the hopeful read.
In addition, a few tens of millions might be expected to come in from RLS and upfront payments of international partnerships over the next year or two. It's still not enough IMO and the ATM still sits out there to be exercised. I wonder what has happened to negotiations with SNY over a severance?
Though a long time shareholder (10+ years), I have been out for a couple of months now and I am not regretting it. So sad to watch what has befallen this amazing innovation...
|
|
