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Post by johntherancher on Jan 24, 2017 13:20:04 GMT -5
This is a quote from the submission by EYES to the SEC dated 1/9/2017: "Each Unit consists of one share of common stock and a Warrant representing the right to purchase one share of common stock at an exercise price equal to the Subscription Price. Each Warrant expires five years from the Expiration Date. The Subscription Rights will not be tradable. We intend to list the Warrants for trading on Nasdaq, but we cannot assure you that our listing application will be approved. Even if our listing application is approved, we cannot guarantee that a trading market for the Warrants will develop."
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Post by lakon on Jan 26, 2017 7:43:48 GMT -5
Which brings me to an interesting question: are those warrants registered so they can be traded? The original ones were listed but I am not sure these ones were as well. These warrants are not publicly traded but I am not sure if they can or cannot be transferred/ sold There is not much that cannot be transferred or sold. A private third party contractual agreement in a secondary market may be required, but still, the effect is the same, just with little to no liquidity. I recall a stipulation in the last [MNKD] deal that right of participation in a future offering was contingent upon holding. If the purchasers sold, as many suggested at the time, they would not automatically participate in the next offering. The terms may have discouraged participation that would lead to increased short interest. I believe that was mentioned at the time. @iam said, "in dilution, every one gets hosed. Even Mann foundation percentage owned got reduced." Your response to me suggests that you did not understand the context of my statement. The subject of the thread is a rights offering for EYES. I drew a conclusion that MNKD might consider a rights offering too, as I have stated before. This time, EYES provides evidence that Matt P. is probably not against rights offerings since he was on the Board of EYES, last I checked. In a rights offering, every shareholder gets the right. If you pony up, you are NOT diluted. That's the point. (Someone asked what's the point -- maybe dreamboatcruise.) Dilution is something that happens as a result of other events. For example, if you choose not to exercise your rights under an offering, dilution would occur for you. If a company does a private or public offering without rights, more common for a quick sale, most existing shareholders cannot participate in the offering, especially if fully or over subscribed. You have no choice but to suffer dilution. Your recourse is to buy shares on the open market to re-balance. If you are lucky, it might be cheaper for you, but often it is more expensive than participating in an offering. I have participated in rights offerings. Generally, I like them for their inherent fairness to all shareholders. They are more common in Europe, and that's where the rights came to me via ADR's. They may not be as expedient as selling a large chunk to an institutional specialist, but those "helpers" are often vultures looking for fast money. Others on this board have mentioned this fact with respect to the underwriting of the last offering by MNKD. One thing that we have seen is that executives at MNKD are flexible, innovative, and learning as they go. The TASE offering did not go as well as hoped, like many things. I think that led to a quick sale via the vultures. (IF MNKD was lucky, they somewhat controlled who participated in that offering, which could bode well. On the other hand, don't read too much into fast money.) The situation is certainly fluid. Some have said that a reverse split is the only option for MNKD. I disagree. A rights offering is another option. There are other options, too. Whatever MNKD tries, they will have to take it to the NASDAQ for agreement soon. The NASDAQ has only issued notice on non-compliant price ($1). That's all. Others argue that they are ineligible for a 180 day extension. Interpretations vary on how to deal with that information.
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Post by agedhippie on Jan 26, 2017 10:38:53 GMT -5
Some have said that a reverse split is the only option for MNKD. I disagree. A rights offering is another option. There are other options, too. Whatever MNKD tries, they will have to take it to the NASDAQ for agreement soon. The NASDAQ has only issued notice on non-compliant price ($1). That's all. Others argue that they are ineligible for a 180 day extension. Interpretations vary on how to deal with that information. A rights issue is not going to fix the share price, at best it is neutral and at worst negative. I do not see it as an option to right the share price.
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Post by dreamboatcruise on Jan 26, 2017 13:05:38 GMT -5
Some have said that a reverse split is the only option for MNKD. I disagree. A rights offering is another option. There are other options, too. Whatever MNKD tries, they will have to take it to the NASDAQ for agreement soon. The NASDAQ has only issued notice on non-compliant price ($1). That's all. Others argue that they are ineligible for a 180 day extension. Interpretations vary on how to deal with that information. A rights issue is not going to fix the share price, at best it is neutral and at worst negative. I do not see it as an option to right the share price. IF the the Mann family/foundation were to announce ahead of time that they were participating fully in a rights offering I think it would solve the problem. Though question remains if they have the financial resources to do so. Many know that I have stated my opinion that they probably lack the resources, the will or both to put enough money into MNKD to really solve the cash flow issue.
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Post by therealcd on Jan 26, 2017 13:56:01 GMT -5
Is this whole company a mess? I mean, come on. Get it together people and please quit talking about football. It's been crazy for too long here and I have held for too long? I see it in people investing here and even the phone calls I've had with some investors. Let's Get it done. Now. Or I am out as well. [teed off Thursday lol.]
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Post by agedhippie on Jan 26, 2017 19:07:39 GMT -5
A rights issue is not going to fix the share price, at best it is neutral and at worst negative. I do not see it as an option to right the share price. IF the the Mann family/foundation were to announce ahead of time that they were participating fully in a rights offering I think it would solve the problem. Though question remains if they have the financial resources to do so. Many know that I have stated my opinion that they probably lack the resources, the will or both to put enough money into MNKD to really solve the cash flow issue. If the Foundation underwrote the rights issue that would do a lot to stabilize things. However I think you are correct and the foundation would have difficulty funding that sort of action either literally, or from a fiduciary standpoint (diversification issues). I a rights issue was viable I think the foundation would have supported that rather than the last round of vulture funding and the resulting dilution.
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Post by lakon on Jan 29, 2017 11:16:16 GMT -5
IF the the Mann family/foundation were to announce ahead of time that they were participating fully in a rights offering I think it would solve the problem. Though question remains if they have the financial resources to do so. Many know that I have stated my opinion that they probably lack the resources, the will or both to put enough money into MNKD to really solve the cash flow issue. If the Foundation underwrote the rights issue that would do a lot to stabilize things. However I think you are correct and the foundation would have difficulty funding that sort of action either literally, or from a fiduciary standpoint (diversification issues). I a rights issue was viable I think the foundation would have supported that rather than the last round of vulture funding and the resulting dilution. Nobody was going to pony up while SNY had its hand in MNKD's back pocket. After ridding themselves of the SNY albatross, we shall see if the R&R deal was a bridge to nowhere or somewhere. Now, relevant Mann affiliated entities could attempt to salvage their investment. Diversification was never an issue for Al, and I doubt it is for Claude. A rights issue of significant size would not dilute participants. By righting the shareholders equity, the down listing to the NASDAQ Capital Market plus another 180 days becomes pretty much automatic. If capital is available, there are simpler ways to solve this than a reverse split or rights offering or a combination of both. It's time to see whether or not Mann affiliates are tapped out or not. Either way, I like that a Mann affiliated company, EYES, has used rights offerings recently.
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Post by mnkdfann on Feb 2, 2017 23:01:56 GMT -5
Does anyone know of a good EYES forum?
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