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Post by onemann on Jan 12, 2017 12:24:32 GMT -5
Does this extend the runway or was the 3q17 runway as quoted in the last conference call include this sale? including the building and they are still short. 30 mil + 17 mil + 1 mil gives them 48 mil so about 5 months? not sure if i am missing anything but there's 20 mil debt coming due mid year - ( which they have to extend if they dont have to cough up $$$$) The also have the option to tap the Mann group.
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Post by patten1962 on Jan 12, 2017 12:25:50 GMT -5
Does anyone have any idea on how much this property cost us per month?
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Post by spencer on Jan 12, 2017 12:32:09 GMT -5
The funds from the sale could also be used to service the debt which some is coming due here in May I believe. It's probably a relief to have cash on hand and not worry about making that payment coming up without dilution just to pay off the debt. Commercial property in California is not going gangbusters at the moment, so it might just have been prudent to take the offer. With Trump coming into office, who knows what's in store. Rates ticking up could also hurt the real estate market. One thing I haven't seen mentioned, is whether or not MannKind is leasing back the property by chance. I've seen that happen quite a bit in the past, with Nokia possibly one of the more memorable companies to do so.
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Post by kbrion77 on Jan 12, 2017 12:35:49 GMT -5
Does anyone have any idea on how much this property cost us per month? Honestly the answer to this is irrelevant. Mannkind could hit the lottery for $500MM in cash and guess what if Afrezza scripts are still hovering around 300/month throughout the year it's over.
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Post by slugworth008 on Jan 12, 2017 12:38:36 GMT -5
I thought management estimated the value of the property closer to $25M. It is only worth what someone is willing to pay, but some may view this sales price as a disappointment. 17.3 million is still a solid number - Glad it sold!
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Post by babaoriley on Jan 12, 2017 12:50:43 GMT -5
I've seen the property, I never thought it was worth $25 million (trust me, I just know these things). And they don't need the space, that place is humongous, given their current business. So they sold an asset they really underutilized and got a decent price, all good. Won't make much of a difference in the long run, if there is a long run.
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Post by uvula on Jan 12, 2017 13:52:59 GMT -5
Matt mentioned in the jp morgan conference that the bldg. was vacant. The cost to maintain it was probably minimal.
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Post by Deleted on Jan 12, 2017 14:42:05 GMT -5
25 or 30 million next year? Where did you get that? In any case, I don't think we should assume that MannKind will be vacating the property. They could stay on as renters. Some other posters had said they did not get enough money. Unless they are an appraiser no one knows current market value. However anyone buying the property would be treating it like a foreclosure. You know you are in a position to low ball them. SO while I am sure it was below market value no one on the internet unless they produce an appraisal is qualified to asses a true market value.
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Post by mnkdfann on Jan 12, 2017 15:31:09 GMT -5
Less realtor fees etc., of course. Not sure what those run to in CA. Anyone know?
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Post by pengiep on Jan 12, 2017 15:34:56 GMT -5
Realtors used to charge 7% for residential in Cali in the 2000s, but I think it's a smaller % now. Maybe around 4%?
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Post by sportsrancho on Jan 12, 2017 15:41:23 GMT -5
Less realtor fees etc., of course. Not sure what those run to in CA. Anyone know? 6%, and the realtor would have the comps.
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Post by gamblerjag on Jan 12, 2017 16:00:20 GMT -5
usually 6% unless the company you list with is the one that sells it then they may deal with 4.5 - 5 %.
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Post by Deleted on Jan 12, 2017 16:40:46 GMT -5
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Post by mikesmilitaria on Jan 14, 2017 17:05:16 GMT -5
The sale MNKD's corporate headquarters in Valencia sure has the ring of consolidation. Will MNKD management move to Danbury? I doubt it.....so where will they report? I guess we'll see this qtr.
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Post by kbrion77 on Jan 14, 2017 17:26:42 GMT -5
The sale MNKD's corporate headquarters in Valencia sure has the ring of consolidation. Will MNKD management move to Danbury? I doubt it.....so where will they report? I guess we'll see this qtr. They have basically consolidated to the point of being a start up. Probably be reporting out of a 1,000 sq ft office somewhere. There is no buyout conspiracy please move on.
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