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Post by sportsrancho on Mar 2, 2017 15:02:10 GMT -5
I understand the NASDAQ regulations pretty well, having had experience sparring with the listing qualifications group in the past. If they follow their own regulations to the letter, then MNKD will be out of compliance on March 13 and will be delisted. At the same time, the exchange only makes money when shares are traded so there is an incentive to keep actively traded stocks listed when possible. This is an unusual case where the company executed a reverse split sufficient to cure a listing defect four days too late. I have never seen that happen before. I can imagine three responses: 1. The exchange ignores the bright line rule that says 10 consecutive days prior to March 13, essentially conceding that what has happened is "close enough". No delisting notice issues. 2. The delisting notice is issued and the company appeals. The panel grants an exception but writes the company a nastygram pointing out that they had 180 days advance notice and thus there was no excuse for the late compliance. This is essentially a slap on the knuckles with teacher's ruler and being made to stand in the corner for being a bad boy, but when the tears dry up all goes back to normal. 3. The delisting notice is issued, the company appeals, and the panel does not grant an exception. The panel notes that the company had fair warning of the compliance deadlines, and that the company is deficient on multiple listing criteria so the stock will be delisted in the public interest. I doubt #1 happens as that would set a very bad precedent that the heretofore sacrosanct listing rules have suddenly become flexible guidelines. I think #2 is the most likely; MNKD rightfully deserves a slap on the knuckles, but delisting the stock is in nobody's interest. However, having dealt with the listing guys before I cannot rule out #3. A lot may depend on exactly which two lawyers they assign to the appeals panel. My rationale for choosing #2 as the most likely is that the brokerages (i.e. the market makers) actually own the exchange, the listing panel works for the exchange, and brokers can't make money from stocks they can't trade. There needs to be some rules, but not so many rules that the exchange does not make money. This makes sense but I guess I'm still confused on Matt P's comment on the Q3-16 conference call held on 11/9/16 that delisting will not be a concern until sometime in the second quarter 2017. Is this bizarro-land or what. Didnt they postpone the vote? Why..
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Post by kbrion77 on Mar 2, 2017 15:02:55 GMT -5
So we close above $1 per share for each trading day starting tomorrow 3-3-17 and after 10 days, 3-16-17 we would normally be OK except if we go by the book, we would need ten days closing above $1 to be achieved by 3-13-17.So then, what happens over the next 10 days if we have a day where closing SP is NOT over $1? Anyone remember a company called Dendreon? I think I need a drink. Maybe some really good news short term so this is not even a remote possibility. I have to believe our CEO and the board understood NASDAQ's timeline and given all the issues the company has had, doing a 1:10 seems like it should have been the way to go. Please tell me they didn't get consecutive days mixed up between regular and trading days? I'm literally confused as hell right now. I would assume they would issue a press release at 5:01ish to explain various items regarding the reverse split?
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Post by dreamboatcruise on Mar 2, 2017 15:08:02 GMT -5
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've gotta be hard on this sentence as it would continue to show he is fumbling on company direction. On 11/9/2016 when the agreement was announced you could have seriously set up a poll here and asked whether or not this agreement would set the course to increase the share price to $1 and satisfy the 10 day requirement and I guarantee you the overwhelming majority here would have said no. I think there would have been sizable group of us that would not have been that optimistic, and hopefully Matt isn't as blindly hopeful as many posters here. He needs to be hopeful as CEO and instill that in everyone else struggling to turn the ship around... but he also needs to be grounded in cold, hard realism in order to prepare for the worst. I think management has fallen short on the latter over the years I've been invested.
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Post by peppy on Mar 2, 2017 15:08:59 GMT -5
In reply to 77 two posts above my guess is it took so many days for the proxies. My proxy came 6 days before the meeting.
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Post by wgreystone on Mar 2, 2017 15:09:07 GMT -5
I guess MNKD is confident to bring the SP back to above $1 (before R/S) which is roughly the last offering price, and hence choose the 1:5 R/S.
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Post by lennymnkd on Mar 2, 2017 15:12:19 GMT -5
This isn't going to take hold , until they get their act together with the synergies of one or more CGM / synchronized CGM with AFREZZA ! It's practically a scacralidge to say it , but the media , press , business ,"PEOPLE love a good gimmick .. inhaled insulin in of itself is not novel enough and the complexity of the science is not good enough to sell Adds , but the CGM WILL GET THEIR ATTENTION , 60 minutes here we come ... I hope 🤔 I apologize for calling it a gimmick but the only way I know how to explain it .
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Post by Deleted on Mar 2, 2017 15:26:21 GMT -5
Well, the pps on Friday will be ~$2.50 which can be easily attacked unless MNKD will begin releasing positive news on a continuous basis to march the pps north. I expect no news tomorrow but instead, news releases over the week end. I sincerely believe we will see a reversal of the status quo with this R/S. I'm confident all the silence and non-transparency had key purposes which will be revealed in the coming weeks. I do not think the pps will change much during trading tomorrow as the sellers will be countered with purchases from the Mann Foundation.So arent they buying today? tell them to buy. They could save 10%. Heck may be they will switch to geico and save 15% and be content?
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Post by surplusvalue on Mar 2, 2017 15:28:36 GMT -5
So we close above $1 per share for each trading day starting tomorrow 3-3-17 and after 10 days, 3-16-17 we would normally be OK except if we go by the book, we would need ten days closing above $1 to be achieved by 3-13-17. So then, what happens over the next 10 days if we have a day where closing SP is NOT over $1? Anyone remember a company called Dendreon? I think I need a drink. Maybe some really good news short term so this is not even a remote possibility. I have to believe our CEO and the board understood NASDAQ's timeline and given all the issues the company has had, doing a 1:10 seems like it should have been the way to go. The 1 for 5 makes sense given that there was a clear range of possibilities for the RS besides 1 for 10 which provided a reasonable conclusion that they were focused on using the RS for the listing issue and not to set up conditions for dilution. The 1 for 5 would also make more sense, if and thats a big if, they have something to help support the RS. to offset any downward pressure on the SP. We'll see. As for the timeline issues, I have commented in the past that management has seriously flawed predisposition to trying to save the company from problems at the last minute and that this is no way to run a company. The thread in which I made this comment was deleted. This problem, rescue at the last minute, has come back to haunt MNKD again. Matt's post above reiterates this when MNKD's late arrival on the scene to deal with the listing issue is no excuse as they had they had more than enough time to fix the issue within the time guidelines. Let's hope that Matt (proboard) is right about result #2 and that MNKD also has something besides the RS itself to help support this fiasco. Make that two drinks.
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Post by dreamboatcruise on Mar 2, 2017 15:39:03 GMT -5
Well, the pps on Friday will be ~$2.50 which can be easily attacked unless MNKD will begin releasing positive news on a continuous basis to march the pps north. I expect no news tomorrow but instead, news releases over the week end. I sincerely believe we will see a reversal of the status quo with this R/S. I'm confident all the silence and non-transparency had key purposes which will be revealed in the coming weeks. I do not think the pps will change much during trading tomorrow as the sellers will be countered with purchases from the Mann Foundation.Hopefully the Mann Foundation isn't going to use limited resources buying shares on open market. If they have money and are willing to deploy it to help Mannkind, I think it would be better to have that be part of an orchestrated share offering to raise capital. Giving their money to short sellers, which is what buying tomorrow would likely be doing, would have little benefit. Providing the money to Mannkind as operating capital is what is needed, either as loan or through equity capital raise. However, they may well not have the resources to do anything of meaningful size compared to Mannkind's needs.
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Post by Deleted on Mar 2, 2017 15:42:55 GMT -5
So we close above $1 per share for each trading day starting tomorrow 3-3-17 and after 10 days, 3-16-17 we would normally be OK except if we go by the book, we would need ten days closing above $1 to be achieved by 3-13-17. So then, what happens over the next 10 days if we have a day where closing SP is NOT over $1? Anyone remember a company called Dendreon? I think I need a drink. Maybe some really good news short term so this is not even a remote possibility. I have to believe our CEO and the board understood NASDAQ's timeline and given all the issues the company has had, doing a 1:10 seems like it should have been the way to go. The 1 for 5 makes sense given that there was a clear range of possibilities for the RS besides 1 for 10 which provided a reasonable conclusion that they were focused on using the RS for the listing issue and not to set up conditions for dilution. The 1 for 5 would also make more sense, if and thats a big if, they have something to help support the RS. to offset any downward pressure on the SP. We'll see. As for the timeline issues, I have commented in the past that management has seriously flawed predisposition to trying to save the company from problems at the last minute and that this is no way to run a company. The thread in which I made this comment was deleted. This problem, rescue at the last minute, has come back to haunt MNKD again. Matt's post above reiterates this when MNKD's late arrival on the scene to deal with the listing issue is no excuse as they had they had more than enough time to fix the issue within the time guidelines. Let's hope that Matt (proboard) is right about result #2 and that MNKD also has something besides the RS itself to help support this fiasco. Make that two drinks. I would say on the surface, if we really need to close above $1 for each of the next ten trading days and Matt P does not have good news to announce very soon, we are likely screwed unless behind the scenes, he has been working with NASDAQ, SEC or some other entity and he has received with absolute certainty assurances that the shenanigans the shorts have been pulling will cease. If Matt P has not received such assurances, and knows he has no good news to announce, then by him doing a 1:5 RS he is threatening the viability of the company to remain on NASDAQ. One could only speculate why he in conjunction would the board would do such a thing. Hopefully we get something positive today, tomorrow or before the market opens on Monday.
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Post by Deleted on Mar 2, 2017 15:52:09 GMT -5
I would say on the surface, if we really need to close above $1 for each of the next ten trading days and Matt P does not have good news to announce very soon, we are likely screwed unless behind the scenes, he has been working with NASDAQ, SEC or some other entity and he has received with absolute certainty assurances that the shenanigans the shorts have been pulling will cease. If Matt P has not received such assurances, and knows he has no good news to announce, then by him doing a 1:5 RS he is threatening the viability of the company to remain on NASDAQ. One could only speculate why he in conjunction would the board would do such a thing. Hopefully we get something positive today, tomorrow or before the market opens on Monday. or may be the whole BOD and Matt have no clue. Some of the short interest could be from insider info from BOD?
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Post by surplusvalue on Mar 2, 2017 15:53:47 GMT -5
The 1 for 5 makes sense given that there was a clear range of possibilities for the RS besides 1 for 10 which provided a reasonable conclusion that they were focused on using the RS for the listing issue and not to set up conditions for dilution. The 1 for 5 would also make more sense, if and thats a big if, they have something to help support the RS. to offset any downward pressure on the SP. We'll see. As for the timeline issues, I have commented in the past that management has seriously flawed predisposition to trying to save the company from problems at the last minute and that this is no way to run a company. The thread in which I made this comment was deleted. This problem, rescue at the last minute, has come back to haunt MNKD again. Matt's post above reiterates this when MNKD's late arrival on the scene to deal with the listing issue is no excuse as they had they had more than enough time to fix the issue within the time guidelines. Let's hope that Matt (proboard) is right about result #2 and that MNKD also has something besides the RS itself to help support this fiasco. Make that two drinks. I would say on the surface, if we really need to close above $1 for each of the next ten trading days and Matt P does not have good news to announce very soon, we are likely screwed unless behind the scenes, he has been working with NASDAQ, SEC or some other entity and he has received with absolute certainty assurances that the shenanigans the shorts have been pulling will cease. If Matt P has not received such assurances, and knows he has no good news to announce, then by him doing a 1:5 RS he is threatening the viability of the company to remain on NASDAQ. One could only speculate why he in conjunction would the board would do such a thing. Hopefully we get something positive today, tomorrow or before the market opens on Monday. All along I have been warning about the negative consequences of an RS unless there is something to support it given the presence of forces that want to see MNKD fail. Not only is doing a RS without the supports in place a threat but as proboard Matt pointed out so is having left this all too late and not within the timeline. Incompetent to have to have relied on a RS in the first place but certainly the height of incompetency to effect a reverse split and not have it solve the listing problem which is what the RS is intended for. I will not be surprised if this does happen given MNKD's strategy of relying on last minute rescue efforts. We'll be the last to know.
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Post by uvula on Mar 2, 2017 15:59:26 GMT -5
Does getting delisted make it easier for an insider to take the company private? Maybe someone wants to own the whole company before investing $100M to keep the company alive.
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Post by Deleted on Mar 2, 2017 16:01:43 GMT -5
Does getting delisted make it easier for an insider to take the company private? Maybe someone wants to own the whole company before investing $100M to keep the company alive. Delisting is only exchange based. They still need to get majority vote. But they already have. nothing is stopping them to take it private now @ these prices.
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Post by sportsrancho on Mar 2, 2017 16:47:33 GMT -5
Matt needs to start buying shares now! And put a floor under the stock. Show us the money and the confidence!
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