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Post by silentknight on Jan 20, 2017 9:41:24 GMT -5
To me it simply suggests mnkd management thinks they'll get an extension. Like Aged post implies they can't say much more than that... I agree that they said the only thing they can. They certainly aren't going to come out and say their backs are up going to quickly be against a proverbial wall in regards to delisting. I'm sure the company knows more than us, and I certainly hope they get it the extension, as it appears they are going to need it or turn to the dreaded reverse-split to stay in compliance. The stock doesn't appear to be approaching $1 any time soon. In looking at the delisting 8-K rules in conjunction with the initial listing rules (which are required to be met in order to qualify for an extension), it doesn't appear that the company is eligible. Initial listing rules requires a minimum $4 million in shareholder equity. MNKD's last 10-Q from November indicated that the company had a shareholder DEFICIT of $238.6 million which would, as per the rules, make them ineligible because they wouldn't meet the initial listing requirements. However, all this is moot if the share price rises above $1 for 10 consecutive days. They might know another way around it, but on face value, they don't qualify for an extension.
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Post by jmkopp on Jan 20, 2017 10:16:16 GMT -5
Can someone let me know why going to an OTC market is so terrible? Is it about legitimacy of the stock, is about availability of the shares, can a companies stock be more manipulated (if that is even possible).
Same question for reverse split. I understand the short term confidence issues with a reverse split, but don't ALL shares need to be accounted for in the process. Wouldn't that help with short shares and naked short shares?
Thanks in advance for your help. By the way, I sincerely believe neither of these options will need to be taken. However, it appeared Matt seemed to think that the change in balance sheet information from last quarter's conference call would take care of the share price issue. The fact that it didn't does concern me a bit. But, I think Matt has some other cards to play.
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Post by sportsrancho on Jan 20, 2017 12:41:19 GMT -5
Can someone let me know why going to an OTC market is so terrible? Is it about legitimacy of the stock, is about availability of the shares, can a companies stock be more manipulated (if that is even possible). Same question for reverse split. I understand the short term confidence issues with a reverse split, but don't ALL shares need to be accounted for in the process. Wouldn't that help with short shares and naked short shares? Thanks in advance for your help. By the way, I sincerely believe neither of these options will need to be taken. However, it appeared Matt seemed to think that the change in balance sheet information from last quarter's conference call would take care of the share price issue. The fact that it didn't does concern me a bit. But, I think Matt has some other cards to play. www.investopedia.com/ask/answers/05/delistingofsharesowned.aspNate thinks that a RS is not a bad thing. And he did say it might help with shorts. He also said it would be better to wait until the stock is higher. 2-3 pps.
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Post by wildthing on Jan 20, 2017 13:32:32 GMT -5
Can someone let me know why going to an OTC market is so terrible? Is it about legitimacy of the stock, is about availability of the shares, can a companies stock be more manipulated (if that is even possible). Same question for reverse split. I understand the short term confidence issues with a reverse split, but don't ALL shares need to be accounted for in the process. Wouldn't that help with short shares and naked short shares? Thanks in advance for your help. By the way, I sincerely believe neither of these options will need to be taken. However, it appeared Matt seemed to think that the change in balance sheet information from last quarter's conference call would take care of the share price issue. The fact that it didn't does concern me a bit. But, I think Matt has some other cards to play. Delisting would likely force a lot of funds to sell their holdings. Also, the pink sheets are pretty notorious -- recall "The Wolf of Wall Street." A reverse split itself shouldn't mean anything except that it might reduce liquidity. Research indicates that the reason stocks tend to fall afterwards is that they were "pigs" to begin with, and the reverse split is just "putting lipstick on a pig": www.barrons.com/articles/SB50001424052702303389204576484341965875236
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Post by jmkopp on Jan 23, 2017 16:10:07 GMT -5
Thanks for the feedback Sports and Wildthing!
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Post by matt on Jan 24, 2017 15:13:20 GMT -5
I agree that they said the only thing they can. They certainly aren't going to come out and say their backs are up going to quickly be against a proverbial wall in regards to delisting. I'm sure the company knows more than us, and I certainly hope they get it the extension, as it appears they are going to need it or turn to the dreaded reverse-split to stay in compliance. The stock doesn't appear to be approaching $1 any time soon. In looking at the delisting 8-K rules in conjunction with the initial listing rules (which are required to be met in order to qualify for an extension), it doesn't appear that the company is eligible. Initial listing rules requires a minimum $4 million in shareholder equity. MNKD's last 10-Q from November indicated that the company had a shareholder DEFICIT of $238.6 million which would, as per the rules, make them ineligible because they wouldn't meet the initial listing requirements. However, all this is moot if the share price rises above $1 for 10 consecutive days. They might know another way around it, but on face value, they don't qualify for an extension. I have had the pleasure of dealing with the NASDAQ Listing Qualifications Group in the past, and it is a little bit like trying to nail Jell-O to a wall. You are correct that the NASDAQ listing qualifications, which are part of the NASDAQ Marketplace Rules, do not provide a quantitative basis for Mannkind to stay listed, not do they provide a quantitative basis for a 180 day extension while a reverse split is accomplished. If the reverse split isn't submitted and voted on before the March 17 deadline then the Marketplace Rules require a delisting notice. The text of the rule states: "If the Company has publicly announced information (e.g., in an earnings release) indicating that it no longer satisfies the applicable listing criteria, it shall not be eligible for the additional compliance period under this rule."and since MNKD has issued a 10Q (and by then perhaps a 10K as well) that shows it does not meet the shareholder equity standard, the company is not eligible for the additional 180 day compliance period. Receipt of a final delisting notice is just a matter of time absent a major unforeseen event. Which leaves an appeal to the NASDAQ Office of the General Counsel which can grant a hearing, which generally happens within 45 days, to consider the matter. The company may submit to the Hearings Department a written plan of compliance and request that the Hearings Panel grant an exception to the listing standards for a limited time period, which cannot exceed 180 days. Since the company has been on notice that they might have to do a reverse split since at least September, but did nothing, this might fall on deaf ears, especially with the continued unresolved deficiency in shareholder equity. The winning strategy is to move forward with the reverse split NOW and if they miss the cut-off date for implementation by a few days the panel is likely to give management a scolding but take no further action. However, the company is on notice already so I don't think they can just blow it off and hope for the best.
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Post by Deleted on Jan 24, 2017 15:27:53 GMT -5
Recap from Q3 Earnings call.
One of the most frequently asked questions they are coming through on the online we ask has to do with delisting. I am not sure what exactly to say about that. I am not terribly concerned about delisting, I think, the news today we’re long way to solving that problem. It’s not going to be an issue till sometime in like the second quarter of next year by which point we have -- we expect to have a lot of this accomplish that will make this whole issue go away.
But I can tell you that a reverse split or such as that has not currently on the table. Doesn’t mean we never consider if we came to that. But, currently, we have no plans to do it. And I am hoping our dramatically improved financial position will help resolve some of this issue.
Should wait for the Q4 earnings call to know if there is any progress - either on share price / desisting / reverse split... I wish they had a concrete answer though rather than the usual double sided talk
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Post by akemp3000 on Jan 24, 2017 17:11:38 GMT -5
There are no signs of consideration of a RS coming from MKND management. Matt believes enough will be accomplished in the coming months to eliminate the delisting issue. Bottom line is he knows things that are going on behind the scenes that we don't. These things might relate to sales increase expectations, TV commercials, international progress, new TS partnerships and more. I too wish they would tell us more but will not be concerned until I hear of some substantive reason to be concerned. So far, there hasn't been any.
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Post by oldfishtowner on Jan 24, 2017 17:31:12 GMT -5
I agree that they said the only thing they can. They certainly aren't going to come out and say their backs are up going to quickly be against a proverbial wall in regards to delisting. I'm sure the company knows more than us, and I certainly hope they get it the extension, as it appears they are going to need it or turn to the dreaded reverse-split to stay in compliance. The stock doesn't appear to be approaching $1 any time soon. In looking at the delisting 8-K rules in conjunction with the initial listing rules (which are required to be met in order to qualify for an extension), it doesn't appear that the company is eligible. Initial listing rules requires a minimum $4 million in shareholder equity. MNKD's last 10-Q from November indicated that the company had a shareholder DEFICIT of $238.6 million which would, as per the rules, make them ineligible because they wouldn't meet the initial listing requirements. However, all this is moot if the share price rises above $1 for 10 consecutive days. They might know another way around it, but on face value, they don't qualify for an extension. I have had the pleasure of dealing with the NASDAQ Listing Qualifications Group in the past, and it is a little bit like trying to nail Jell-O to a wall. You are correct that the NASDAQ listing qualifications, which are part of the NASDAQ Marketplace Rules, do not provide a quantitative basis for Mannkind to stay listed, not do they provide a quantitative basis for a 180 day extension while a reverse split is accomplished. If the reverse split isn't submitted and voted on before the March 17 deadline then the Marketplace Rules require a delisting notice. The text of the rule states: "If the Company has publicly announced information (e.g., in an earnings release) indicating that it no longer satisfies the applicable listing criteria, it shall not be eligible for the additional compliance period under this rule."and since MNKD has issued a 10Q (and by then perhaps a 10K as well) that shows it does not meet the shareholder equity standard, the company is not eligible for the additional 180 day compliance period. Receipt of a final delisting notice is just a matter of time absent a major unforeseen event. Which leaves an appeal to the NASDAQ Office of the General Counsel which can grant a hearing, which generally happens within 45 days, to consider the matter. The company may submit to the Hearings Department a written plan of compliance and request that the Hearings Panel grant an exception to the listing standards for a limited time period, which cannot exceed 180 days. Since the company has been on notice that they might have to do a reverse split since at least September, but did nothing, this might fall on deaf ears, especially with the continued unresolved deficiency in shareholder equity. The winning strategy is to move forward with the reverse split NOW and if they miss the cut-off date for implementation by a few days the panel is likely to give management a scolding but take no further action. However, the company is on notice already so I don't think they can just blow it off and hope for the best. According to the Nasdaq Continued Listing Guide listingcenter.nasdaq.com/assets/continuedguide.pdf there are three standards for continued listing: Equity Standard, Market Value Standard and Total Assets/Total Revenue Standard. Only one of these has to be satisfied for continued listing. MNKD has not satisfied either the Equity Standard or the Total Assets/Total Revenue Standard for several years. So only the Market Standard is applicable. I presume, then, that the words "applicable listing criteria" in your bolded paragraph refer to the Market Value Standard criteria. The Market Value Standard has no requirement for stockholder equity, so how is that relevant? In fact, MNKD is in compliance with all of the Market Value Standard criteria except for the $1 bid price for the company's stock. Unless I am missing something, the task at hand is to get the stock price back up over $1, which management apparently thinks it can do in the next couple of months. The next earnings CC will give us a better idea of whether management's expectations are realistic or not.
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Post by mnkdfann on Jan 24, 2017 18:16:15 GMT -5
"So only the Market Standard is applicable." That includes a requirement of at least 4 market makers covering the company. Does MNKD have at least 4 market makers? I am not sure whether this site is accurate, but according to it Mannkind does not: stockalyzing.com/nasdaq-market-maker-list/?maker=MFWIW, the same site says that EYES has 2 market makers.
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Post by agedhippie on Jan 24, 2017 19:03:48 GMT -5
"So only the Market Standard is applicable." That includes a requirement of at least 4 market makers covering the company. Does MNKD have at least 4 market makers? I am not sure whether this site is accurate, but according to it Mannkind does not: stockalyzing.com/nasdaq-market-maker-list/?maker=MFWIW, the same site says that EYES has 2 market makers. As of yesterday Mannkind had 41 market makers (go here and put in MNKD as the issue, EYES had 23)). You are confusing the MPID for the market maker with the ticker for the stock.
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Post by mnkdfann on Jan 24, 2017 19:21:21 GMT -5
"So only the Market Standard is applicable." That includes a requirement of at least 4 market makers covering the company. Does MNKD have at least 4 market makers? I am not sure whether this site is accurate, but according to it Mannkind does not: stockalyzing.com/nasdaq-market-maker-list/?maker=MFWIW, the same site says that EYES has 2 market makers. As of yesterday Mannkind had 41 market makers (go here and put in MNKD as the issue, EYES had 23)). You are confusing the MPID for the market maker with the ticker for the stock. I think you may be correct about my confusing MPIDs for ticker symbols at that site. But, respectfully, are you confusing market maker with market participant? The site you sent me to apparently gives a list of the latter (all sorts of market participants). I recognize that the ones with an M beside their name are supposedly indicated as market makers, but are they? Maybe they are market makers for some stocks on NASDAQ, but not for MNKD? Because NASDAQ claims (see link below) that it "achieves market depth averaging 14 market makers per stock". If 14 is the average number of market makers (not participants), it would be beyond belief for MNKD to have 41! www.nasdaq.com/about/market_participants.pdfMarket participants includes: "market makers, order entry firms, and alternative trading systems (ATSs) that include electronic communication networks (ECNs) and unlisted trading privileges (UTP) exchanges". I suppose this is a moot consideration given chuck's post below mine, but I am curious now about how many market makers (not participants) MNKD really has. Agedhippie, I conclude by saying that you may well be correct. I'm just confused given what NASDAQ says about the average number of market makers per stock.
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Post by chuck on Jan 24, 2017 19:28:46 GMT -5
I have had the pleasure of dealing with the NASDAQ Listing Qualifications Group in the past, and it is a little bit like trying to nail Jell-O to a wall. You are correct that the NASDAQ listing qualifications, which are part of the NASDAQ Marketplace Rules, do not provide a quantitative basis for Mannkind to stay listed, not do they provide a quantitative basis for a 180 day extension while a reverse split is accomplished. If the reverse split isn't submitted and voted on before the March 17 deadline then the Marketplace Rules require a delisting notice. The text of the rule states: "If the Company has publicly announced information (e.g., in an earnings release) indicating that it no longer satisfies the applicable listing criteria, it shall not be eligible for the additional compliance period under this rule."and since MNKD has issued a 10Q (and by then perhaps a 10K as well) that shows it does not meet the shareholder equity standard, the company is not eligible for the additional 180 day compliance period. Receipt of a final delisting notice is just a matter of time absent a major unforeseen event. Which leaves an appeal to the NASDAQ Office of the General Counsel which can grant a hearing, which generally happens within 45 days, to consider the matter. The company may submit to the Hearings Department a written plan of compliance and request that the Hearings Panel grant an exception to the listing standards for a limited time period, which cannot exceed 180 days. Since the company has been on notice that they might have to do a reverse split since at least September, but did nothing, this might fall on deaf ears, especially with the continued unresolved deficiency in shareholder equity. The winning strategy is to move forward with the reverse split NOW and if they miss the cut-off date for implementation by a few days the panel is likely to give management a scolding but take no further action. However, the company is on notice already so I don't think they can just blow it off and hope for the best. According to the Nasdaq Continued Listing Guide listingcenter.nasdaq.com/assets/continuedguide.pdf there are three standards for continued listing: Equity Standard, Market Value Standard and Total Assets/Total Revenue Standard. Only one of these has to be satisfied for continued listing. MNKD has not satisfied either the Equity Standard or the Total Assets/Total Revenue Standard for several years. So only the Market Standard is applicable. I presume, then, that the words "applicable listing criteria" in your bolded paragraph refer to the Market Value Standard criteria. The Market Value Standard has no requirement for stockholder equity, so how is that relevant? In fact, MNKD is in compliance with all of the Market Value Standard criteria except for the $1 bid price for the company's stock. Unless I am missing something, the task at hand is to get the stock price back up over $1, which management apparently thinks it can do in the next couple of months. The next earnings CC will give us a better idea of whether management's expectations are realistic or not. You are misunderstanding the requirements. If they fail to meet the minimum bid on the last day of the compliance period (early March by my count) then they get another 180 days but only if they meet all other standards for "initial listing". Not "continued listing". If you go pull up the initial listing requirements you will find the shareholder equity issue.
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Post by dreamboatcruise on Jan 24, 2017 20:37:22 GMT -5
There are no signs of consideration of a RS coming from MKND management. Matt believes enough will be accomplished in the coming months to eliminate the delisting issue. Bottom line is he knows things that are going on behind the scenes that we don't. These things might relate to sales increase expectations, TV commercials, international progress, new TS partnerships and more. I too wish they would tell us more but will not be concerned until I hear of some substantive reason to be concerned. So far, there hasn't been any. There WERE no signs back at the last conference call, but from his statement in the last conference call it appears he thought the dramatic balance sheet improvement revealed then would make significant difference, which it didn't. Some of the things you list aren't going to dramatically change the share price in the time period needed. Announcing "expectations" for increased sales will mean zip. Announcing, or even starting TV commercials, will mean little. "progress" in international will only matter if it is a partner with upfront money. Simply filing regulatory papers will not increase price as that would have no bearing on convincing investors that Afrezza would do any better in another country than here. I think Matt anticipated that much of the heavy lifting of getting us above $1 would be what he announced then regarding SNY settlement and balance sheet improvement. I think investors assuming there is something bigger that will materialize in short order is likely overly optimistic.
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Post by Deleted on Jan 24, 2017 20:48:04 GMT -5
There are no signs of consideration of a RS coming from MKND management. Matt believes enough will be accomplished in the coming months to eliminate the delisting issue. Bottom line is he knows things that are going on behind the scenes that we don't. These things might relate to sales increase expectations, TV commercials, international progress, new TS partnerships and more. I too wish they would tell us more but will not be concerned until I hear of some substantive reason to be concerned. So far, there hasn't been any. There WERE no signs back at the last conference call, but from his statement in the last conference call it appears he thought the dramatic balance sheet improvement revealed then would make significant difference, which it didn't. Some of the things you list aren't going to dramatically change the share price in the time period needed. Announcing "expectations" for increased sales will mean zip. Announcing, or even starting TV commercials, will mean little. "progress" in international will only matter if it is a partner with upfront money. Simply filing regulatory papers will not increase price as that would have no bearing on convincing investors that Afrezza would do any better in another country than here. I think Matt anticipated that much of the heavy lifting of getting us above $1 would be what he announced then regarding SNY settlement and balance sheet improvement. I think investors assuming there is something bigger that will materialize in short order is likely overly optimistic. fudster <end sarcasm> TRUE LONG ? <end sarcasm again> No Belittling here or there <end sarcasm again>
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