Tinkerbell
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Watcher of the Skies
Posts: 143
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Post by Tinkerbell on Jun 24, 2017 12:59:26 GMT -5
They have to have a minimum of 25M reserved in cash at all times under Deerfield terms. Did you factor that in? No, this is not true. They can spend that $25M to zero as long as at quarter end they have a line of credit (like the line of credit they have with Mann Group) of at least $25M. This has been explained many times, including by Matt P. himself. I stand corrected though 25M is still the magic number irrespective of timing. It needs to be there somehow, someway per Deerfield's agreement.
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Post by compound26 on Jun 24, 2017 13:09:01 GMT -5
For your information, here is what Matt Pfeffer has said in the 2016 third quarter CC: seekingalpha.com/article/4021887-mannkinds-mnkd-ceo-matthew-pfeffer-q3-2016-results-earnings-call-transcript?part=singleI also have question comes through related to some confusion about our cash position and what cash is actually available, so I’ll try to answer that one, because I have actually seen that misrepresenting a bunch of times, because many talk about a requirement under the Deerfield debt agreement that we maintain $25 million worth of cash, and I say, we will take it down to as we work into the quarter, $35 million, that means you really only have $10 million available. That’s not actually true. The way that debt agreement was structured is that included not only cash, but also available burrowing. So as long as we have $25 million or more available from the Mann Group, for example, we don’t have to maintain a minimum cash balance under that agreement.
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Tinkerbell
Researcher
Watcher of the Skies
Posts: 143
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Post by Tinkerbell on Jun 24, 2017 13:16:25 GMT -5
Very well. I see your point.
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Post by radgray68 on Jun 24, 2017 13:28:34 GMT -5
Wouldn't all the shenanigans be moot if they have been tapping the ATM since the last conference call? The $10 million due in July could be taken care of already and more for less than 10% dilution. I'm figuring 10 million shares sold at somewhere between $1.50 and $1.80 for around $16.5 million. That pays the big July installment and another month of keeping the lights on. More if Deerfield takes some shares in exchange for debt.
I agree with Matt that raising through the ATM is not optimal and only someone with a crystal ball could be so bold as to throw out fear of short term dilution for practicality. However, Mike or Matt said something interesting at the last CC. I forget the exact words but he seemed past doubt now that they have proved that sales were "promotion sensitive. " I think that is what Mike was hired for, with the promise of a CEO title if he could prove Afrezza a sellable product. The Mann Group and other potential investors would need that proof before investing any further. If I'm right, 10%, 20% or even the whole 40% left to dilute would be just the cost of doing business if we now know we can end up a $150 stock.
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Tinkerbell
Researcher
Watcher of the Skies
Posts: 143
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Post by Tinkerbell on Jun 24, 2017 14:17:07 GMT -5
Wouldn't all the shenanigans be moot if they have been tapping the ATM since the last conference call? The $10 million due in July could be taken care of already and more for less than 10% dilution. I'm figuring 10 million shares sold at somewhere between $1.50 and $1.80 for around $16.5 million. That pays the big July installment and another month of keeping the lights on. More if Deerfield takes some shares in exchange for debt. I agree with Matt that raising through the ATM is not optimal and only someone with a crystal ball could be so bold as to throw out fear of short term dilution for practicality. However, Mike or Matt said something interesting at the last CC. I forget the exact words but he seemed past doubt now that they have proved that sales were "promotion sensitive. " I think that is what Mike was hired for, with the promise of a CEO title if he could prove Afrezza a sellable product. The Mann Group and other potential investors would need that proof before investing any further. If I'm right, 10%, 20% or even the whole 40% left to dilute would be just the cost of doing business if we now know we can end up a $150 stock. Precisely.
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Post by mytakeonit on Jun 24, 2017 14:46:42 GMT -5
I believe that Nate said "three bagger" ... BUT, while we were drinking and chatting the other night ... WE changed it to "four bagger".
So, back up the truck and load up during this break out week !!!
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Post by peppy on Jun 24, 2017 14:58:23 GMT -5
Wouldn't all the shenanigans be moot if they have been tapping the ATM since the last conference call? The $10 million due in July could be taken care of already and more for less than 10% dilution. I'm figuring 10 million shares sold at somewhere between $1.50 and $1.80 for around $16.5 million. That pays the big July installment and another month of keeping the lights on. More if Deerfield takes some shares in exchange for debt. I agree with Matt that raising through the ATM is not optimal and only someone with a crystal ball could be so bold as to throw out fear of short term dilution for practicality. However, Mike or Matt said something interesting at the last CC. I forget the exact words but he seemed past doubt now that they have proved that sales were "promotion sensitive. " I think that is what Mike was hired for, with the promise of a CEO title if he could prove Afrezza a sellable product. The Mann Group and other potential investors would need that proof before investing any further. If I'm right, 10%, 20% or even the whole 40% left to dilute would be just the cost of doing business if we now know we can end up a $150 stock. Precisely. regarding becoming $150 dollar stock. MNKD's afrezza would have to make a deal with the PBM's as near as I can tell. Then physicians need to prescribe. reversed due to start in 22th days. Vdex moved to a larger facility as near as I understand. Kastances posted the alpha article, I read the part, where are the refills? We should try to do some of our own math on the refills, and take a look?
There was one tweet in particular, a compliant that the PBM had denied afrezza after three years on afrezza asking for help. The insurance problem our big problem. I say this because insulin: basal and insulin; mealtime is on the standards of care. type one's immediately meet criteria. type two have to go through the steps, my point is meal time insulin is there. The label change will help that. All these things, the timeline we have been provided is right around the corner.
We need the pediatric trial done. However the push needs to come from adults.
Damn this traffic jam..... I hope united arab emeritus is true. Deerfield: Thanks for going over it so well. and thank you compound: "I remember him saying that."
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Post by thall on Jun 24, 2017 20:28:14 GMT -5
Wouldn't all the shenanigans be moot if they have been tapping the ATM since the last conference call? The $10 million due in July could be taken care of already and more for less than 10% dilution. I'm figuring 10 million shares sold at somewhere between $1.50 and $1.80 for around $16.5 million. That pays the big July installment and another month of keeping the lights on. More if Deerfield takes some shares in exchange for debt. I agree with Matt that raising through the ATM is not optimal and only someone with a crystal ball could be so bold as to throw out fear of short term dilution for practicality. However, Mike or Matt said something interesting at the last CC. I forget the exact words but he seemed past doubt now that they have proved that sales were "promotion sensitive. " I think that is what Mike was hired for, with the promise of a CEO title if he could prove Afrezza a sellable product. The Mann Group and other potential investors would need that proof before investing any further. If I'm right, 10%, 20% or even the whole 40% left to dilute would be just the cost of doing business if we now know we can end up a $150 stock. What ATM? I read through the last quarterly report and didn't see any mention of an ATM. Who's the ATM with? How big is it?
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Post by op2778 on Jun 24, 2017 21:21:02 GMT -5
Good Night guys.
I don't post too much, because have nothing to add to some of your post. That said, we all know that we need cash (one way or the other). We can call it diluition, private offering and so on, but we need cash.
Of course, as bagholders (I'm one), I really hope no more diluition.
What if MNKD for once decide to use Tel Aviv exchange to do some kind of offering or some magical financing leaving USA market out of picture? Why? Well, I'm not pretty sure, but, looks like Tel Aviv shares cannot be shorted vs USA market where they can be shorted to hell.
Yes, for once, I'll love to not be diluite and if they need to diluite someone, well please, do it to Israel.
Btw: Mr AL have done some serious donation over there. Do we know if Mann Trust has something than can be sold there?
Op
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Post by mnkdfann on Jun 24, 2017 23:39:43 GMT -5
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Post by mnkdfann on Jun 25, 2017 12:16:53 GMT -5
The issue for MNKD is that they don't have enough cash to pay Deerfield the $10 million they owe in July, Do you happen to know off the top of your head the precise (or approximate) date in July the payment is due? If so, please share. (I imagine it is public info and available in some SEC filing, but I don't have the time to look right just now.) I got around to looking and, from what I found on-line, the date appears to be July 21, 2017.
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Post by radgray68 on Jun 27, 2017 13:18:46 GMT -5
Wouldn't all the shenanigans be moot if they have been tapping the ATM since the last conference call? The $10 million due in July could be taken care of already and more for less than 10% dilution. I'm figuring 10 million shares sold at somewhere between $1.50 and $1.80 for around $16.5 million. That pays the big July installment and another month of keeping the lights on. More if Deerfield takes some shares in exchange for debt. I agree with Matt that raising through the ATM is not optimal and only someone with a crystal ball could be so bold as to throw out fear of short term dilution for practicality. However, Mike or Matt said something interesting at the last CC. I forget the exact words but he seemed past doubt now that they have proved that sales were "promotion sensitive. " I think that is what Mike was hired for, with the promise of a CEO title if he could prove Afrezza a sellable product. The Mann Group and other potential investors would need that proof before investing any further. If I'm right, 10%, 20% or even the whole 40% left to dilute would be just the cost of doing business if we now know we can end up a $150 stock. What ATM? I read through the last quarterly report and didn't see any mention of an ATM. Who's the ATM with? How big is it? You'll find it in the 8k from April 26th, 2016. It doesn't end until April 2019 and it only uses a $50 million dollar amount so I don't think the reverse split affects the filing. Here, I copied and pasted it:
Item 1.01 Entry into a Material Definitive Agreement.
On April 26, 2016, MannKind Corporation (the “Company”) entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with FBR Capital Markets & Co. (“FBR”), pursuant to which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $50.0 million from time to time through FBR as its sales agent. The Company is not obligated to make any sales of common stock under the Sales Agreement.
The issuance and sale of the common stock by the Company under the Sales Agreement, if any, is subject to the effectiveness of the Company’s registration statement on Form S-3 (File No. 333-210792), filed with the Securities and Exchange Commission on April 18, 2016 (the “Registration Statement”). The Company makes no assurances as to if or whether the Registration Statement will become effective or, if it does become effective, as to the continued effectiveness of the Registration Statement.
FBR may sell the common stock by any method that is deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the “Act”), including sales made directly on or through The NASDAQ Global Market or to or through a market maker. FBR may also sell the common stock in negotiated transactions, subject to our approval. Subject to the terms and conditions of the Sales Agreement, FBR will use commercially reasonable efforts consistent with its normal trading and sales practices to sell the common stock from time to time, based upon the Company’s instructions (including any price, time or size limits or other customary parameters or conditions the Company may impose).
Unless earlier terminated as provided below, the Sales Agreement will automatically terminate upon the earlier of (1) the sale of all common stock subject to the Sales Agreement and (2) April 26, 2019. The Sales Agreement may be terminated by the Company or FBR at any time upon 10 days’ notice to the other party, or by FBR at any time in certain circumstances, including the occurrence of a material adverse change in the Company.
The Company will pay FBR an aggregate commission rate equal to up to 3.0% of the gross proceeds of the sales price per share for common stock sold through FBR under the Sales Agreement. The Company has also provided FBR with customary indemnification rights and expense reimbursements for up to $25,000 of expenses.
The foregoing description of the Sales Agreement is not complete and is qualified in its entirety by reference to the full text of such agreement, a copy of which is attached as Exhibit 99.1 to this report and is incorporated herein by reference.
This report shall not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein, nor shall there be any offer, solicitation, or sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
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Post by straightly on Jun 29, 2017 0:58:57 GMT -5
What ATM? I read through the last quarterly report and didn't see any mention of an ATM. Who's the ATM with? How big is it? You'll find it in the 8k from April 26th, 2016. It doesn't end until April 2019 and it only uses a $50 million dollar amount so I don't think the reverse split affects the filing. Here, I copied and pasted it:
Item 1.01 Entry into a Material Definitive Agreement.
On April 26, 2016, MannKind Corporation (the “Company”) entered into an At Market Issuance Sales Agreement (the “Sales Agreement”) with FBR Capital Markets & Co. (“FBR”), pursuant to which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $50.0 million from time to time through FBR as its sales agent. The Company is not obligated to make any sales of common stock under the Sales Agreement.
The issuance and sale of the common stock by the Company under the Sales Agreement, if any, is subject to the effectiveness of the Company’s registration statement on Form S-3 (File No. 333-210792), filed with the Securities and Exchange Commission on April 18, 2016 (the “Registration Statement”). The Company makes no assurances as to if or whether the Registration Statement will become effective or, if it does become effective, as to the continued effectiveness of the Registration Statement.
FBR may sell the common stock by any method that is deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended (the “Act”), including sales made directly on or through The NASDAQ Global Market or to or through a market maker. FBR may also sell the common stock in negotiated transactions, subject to our approval. Subject to the terms and conditions of the Sales Agreement, FBR will use commercially reasonable efforts consistent with its normal trading and sales practices to sell the common stock from time to time, based upon the Company’s instructions (including any price, time or size limits or other customary parameters or conditions the Company may impose).
Unless earlier terminated as provided below, the Sales Agreement will automatically terminate upon the earlier of (1) the sale of all common stock subject to the Sales Agreement and (2) April 26, 2019. The Sales Agreement may be terminated by the Company or FBR at any time upon 10 days’ notice to the other party, or by FBR at any time in certain circumstances, including the occurrence of a material adverse change in the Company.
The Company will pay FBR an aggregate commission rate equal to up to 3.0% of the gross proceeds of the sales price per share for common stock sold through FBR under the Sales Agreement. The Company has also provided FBR with customary indemnification rights and expense reimbursements for up to $25,000 of expenses.
The foregoing description of the Sales Agreement is not complete and is qualified in its entirety by reference to the full text of such agreement, a copy of which is attached as Exhibit 99.1 to this report and is incorporated herein by reference.
This report shall not constitute an offer to sell or the solicitation of an offer to buy the securities discussed herein, nor shall there be any offer, solicitation, or sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
If/when ATM is tapped, when will we , as in public, be notified, if at all?
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Post by radgray68 on Jun 30, 2017 15:38:47 GMT -5
ATM sales aren't reported as they happen and won't show up until the quarterly report. Although, it does not appear that they are tapping the ATM at all with all the renegotiating and borrowing going on lately. I guess they are serious about trying to be al minimally dilutive as possible.
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Post by seanismorris on Jun 30, 2017 19:12:58 GMT -5
ATM sales aren't reported as they happen and won't show up until the quarterly report. Although, it does not appear that they are tapping the ATM at all with all the renegotiating and borrowing going on lately. I guess they are serious about trying to be al minimally dilutive as possible. Re the ATM If you say so... tapping the ATM would be about as much a "material event" as it gets.
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