1:5 split

[mnkdnewb]

I wonder if any here are actually surprised or if they knew it would happen. Not a bad split, puts us at around $2.50 depending on where we end up today

[therealisaching]

biz.yahoo.com/e/170302/mnkd8-k.html

[tchalaa]

investors.mannkindcorp.com/sec.cfm

On March 1, 2017, following stockholder approval of the Reverse Split Proposal, the Company’s board of directors approved a reverse stock split of the Company’s common stock at a ratio of 1-for-5. On March 1, 2017, the Company filed with the Secretary of State of the State of Delaware a Certificate of Amendment of its Amended and Restated Certificate of Incorporation (the “Charter Amendment”) to (i) effect the 1-for-5 reverse stock split of the Company’s outstanding common stock and (ii) reduce the authorized number of shares of the Company’s common stock from 700,000,000 to 140,000,000 shares. The Charter Amendment will be effective at 5:01 p.m. Eastern Time on March 2, 2017 (the “Effective Time”).

investors.mannkindcorp.com/secfiling.cfm?filingID=1193125-17-66630&CIK=899460

[golfeveryday]

Was not surprised by the split, but was surprised by 1:5 vs 1:10. Suggests to me something is coming in terms of 'strength', because 1:5 is not enough with no news.

[tchalaa]

What about the new CUSIP number??

The Company’s common stock will begin trading on The NASDAQ Global Market on a split-adjusted basis when the market opens on March 3, 2017. The new CUSIP number for the Company’s common stock following the reverse stock split is 56400P 706.

[mnkdnewb]

I also noticed they are able to issue 10,000,000 preferred stocks - is this something new or were there 50,0000,000 preferred stocks before and they were reduced 1:5 too?

[op2778]

That 1:5 RS just shows to me their inability........A 1:10 was necessary imo......
Be ready for diluition....

[peppy]

As best that we can determine, will MNKD stay on the NASDAQ?

business.nasdaq.com/list/listing-options/US-Market-Tiers

listingcenter.nasdaq.com/assets/continuedguide.pdf

[mnkdnewb]

Mar 2, 2017 8:57:06 GMT -5 op2778 said:

That 1:5 RS just shows to me their inability........A 1:10 was necessary imo......
Be ready for diluition....

I'm not sure what to think about it, if they are splitting I guess why not do a 1:10? It really doesn't make a difference in my mind. I'd be surprised if they announce any "bad" news / dilution before the end of the day or it would just crater the sp before the split. Imho the earliest they'd announce dilution is after the stock has been above $1 for 10 days to remove delisting for another year ish

[Deleted]

The 1:5 has me scratching my head but perhaps that is because I do not understand the entire situation. Does the split inhibit the ability of the shorts to drive down SP further? If yes, why and if not, why. Explanations appreciated.

If the split does not inhibit the shorts ability to drive down SP, and they really want to BK the company and or keep Afrezza off the market, a couple of massive trades the next few days would do it. If my line of thinking is correct, has management made a fatal error? Am I correct that after the split takes place, for the immediate following 10 days SP MUST remain above $1.00 to avoid delisting and if this is correct, why would they not have done a 1:10? Is there a more adverse impact of a 1:10 vs a 1:5 and if so, can someone explain? Outstanding shares reduced but what other ramifications are there for 1:10 vs 1:5? Does SP get beat down harder with greater dilution and if so, is Matt P simply trying to keep market cap as high as possible seems risky if over the next 10 days SP MUST remain above $1 to keep listing.

[lakon]

Mar 2, 2017 8:56:19 GMT -5 mnkdnewb said:

I also noticed they are able to issue 10,000,000 preferred stocks - is this something new or were there 50,0000,000 preferred stocks before and they were reduced 1:5 too?

It's not new. The preferred were not affected by the 1:5 r/s. They cannot issue them without breaching TASE regulations. I'm not sure why they keep them around. Any ideas anyone?

[mnkdnewb]

Mar 2, 2017 9:26:36 GMT -5 @scotta said:

The 1:5 has me scratching my head but perhaps that is because I do not understand the entire situation. Does the split inhibit the ability of the shorts to drive down SP further? If yes, why and if not, why. Explanations appreciated.

If the split does not inhibit the shorts ability to drive down SP, and they really want to BK the company and or keep Afrezza off the market, a couple of massive trades the next few days would do it. If my line of thinking is correct, has management made a fatal error? Am I correct that after the split takes place, for the immediate following 10 days SP MUST remain above $1.00 to avoid delisting and if this is correct, why would they not have done a 1:10? Is there a more adverse impact of a 1:10 vs a 1:5 and if so, can someone explain? Outstanding shares reduced but what other ramifications are there for 1:10 vs 1:5? Does SP get beat down harder with greater dilution and if so, is Matt P simply trying to keep market cap as high as possible seems risky if over the next 10 days SP MUST remain above $1 to keep listing.

Hopefully Matt chimes in, but the company right now is worth around $250,000,000 whether there is 500,0000 shares or 500,000,000 shares. If a short thinks the company is worth less than the market cap they will short it no matter the current share price. Is that accurate?

[mnholdem]

I anticipate that next Monday, MannKind will issue a press release announcing the date of the 4Q16 / End of Year earnings call, which will likely be March 13.

What news will Matt have to share? He stated at an earlier conference that he would be providing Afrezza sales guidance at this call.  So far, he seems to have misjudged how the market would react on several key fronts, especially what he believed would be welcomed financial news following the impact of Sanofi settlement.

Sales is key.  Afrezza sales guidance provided by CEO Matt Pfeffer at the upcoming earnings call MAY lead to demand (institutional, funds, retail) picking up a bit for MNKD stock but I suspect that until Wall Street managers see tangible evidence that Afrezza sales are actually growing, the PPS will continue to experience enormous pressure from short interests.

[agedhippie]

Mar 2, 2017 9:42:16 GMT -5 mnholdem said:

I anticipate that next Monday, MannKind will issue a press release announcing the date of the 4Q16 / End of Year earnings call, which will likely be March 13.

What news will Matt have to share? He stated at an earlier conference that he would be providing Afrezza sales guidance at this call.  So far, he seems to have misjudged how the market would react on several key fronts, especially what he believed would be welcomed financial news following the impact of Sanofi settlement.

Sales is key.  Afrezza sales guidance provided by CEO Matt Pfeffer at the upcoming earnings call MAY lead to demand (institutional, funds, retail) picking up a bit for MNKD stock but I suspect that until Wall Street managers see tangible evidence that Afrezza sales are actually growing, the PPS will continue to experience enormous pressure from short interests.

I would tend to agree with you. I think Matt expected better sales by now or he would never have agreed to provide guidance. Now he is trapped - on one hand he can give an estimate blindly and the share price get slaughtered at the next earnings release if he doesn't hit it, or he can take a pass on giving an estimate and lead to the view that he has no idea what is happening. If he gives an estimate and gets it right he gets no kudos because it is his job to know where his company is heading however it would start to reestablish his credentials with institutions.

[almannlives]

I personally think its time to replace Matt!