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Post by mnkdfann on Jun 28, 2017 9:14:19 GMT -5
A comment someone left on SA says that shares in MNKD are the Mann Group's only (significant) asset.
Is that true?
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Post by boytroy88 on Jun 28, 2017 9:16:48 GMT -5
The board seems awfully quiet on what I perceive as semi major news...makes me a bit nervous.
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Post by rockstarrick on Jun 28, 2017 9:25:29 GMT -5
I think it's a good decision, no dilution and cash for extra 2 months? That but it's also do or die.... It's always "do or die" when operating a business. right ?? |
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Post by seanismorris on Jun 28, 2017 9:27:50 GMT -5
The board seems awfully quiet on what I perceive as semi major news...makes me a bit nervous. There's not much to say, dilution was (and is) coming... it's just been pushed back a bit. The best we can hope for is a good scripts number on Friday... |
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Post by compound26 on Jun 28, 2017 9:53:02 GMT -5
That but it's also do or die.... It's always "do or die" when operating a business. right ?? I think it has been a 'do or die" projection for every coming month/quarter in the last two years.  |
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Post by agedhippie on Jun 28, 2017 9:57:26 GMT -5
The three options I see for this are that Deerfield did not want any more equity because they never sold the last tranche and are holding it as an investment (although it goes against their MO), that Mannkind did not want to issue at the price Deerfield was asking, or that Mannkind are betting Greenhill can find a US partner/buyer. I know all of that is a statement of the obvious but I think it's worth laying out.
My feeling is that it is the last option (US partner/buyer) because otherwise I cannot see why they engaged Greenfield as the strategy is set (There is no money to change direction at this point). Between Locust Walk and Greenhill the bushes are being beaten but it will take time and I think there will have to be another round of dilution. The plus side is that by paying cash to Deerfield immediate dilution is avoided so when it comes it will be off a higher base. After that round Greenhill and/or Locust Walk need to deliver.
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Post by brotherm1 on Jun 28, 2017 10:00:27 GMT -5
The board seems awfully quiet on what I perceive as semi major news...makes me a bit nervous. There's not much to say, dilution was (and is) coming... it's just been pushed back a bit. The best we can hope for is a good scripts number on Friday... The best we can hope for would be a foreign deal with up front cash; sale of a pipeline product for a large sum; a buyout offer for more than the price we're sitting at now to at least raise some hopes and draw notice from wall street and other companies; a partnership with the right company; banging scripts; a combination of the aforementioned... |
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Post by boytroy88 on Jun 28, 2017 10:00:33 GMT -5
It's always "do or die" when operating a business. right ?? I think it has been a 'do or die" projection for every coming month/quarter in the last two years. It has...but at least back then we had a sort of a safety net with the loan agreement... |
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Post by gamblerjag on Jun 28, 2017 10:02:00 GMT -5
The board seems awfully quiet on what I perceive as semi major news...makes me a bit nervous. There's not much to say, dilution was (and is) coming... it's just been pushed back a bit. The best we can hope for is a good scripts number on Friday... . Doubt that they would have done it now |
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Post by sportsrancho on Jun 28, 2017 10:14:57 GMT -5
The board seems awfully quiet on what I perceive as semi major news...makes me a bit nervous. It is nerve racking but it's a interesting move on Mikes part. Shows confidence. (Also on the Mann Groups part.) Would have been safer to dilute. |
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Post by thall on Jun 28, 2017 10:18:53 GMT -5
If I read it correctly, it says that 10.6 million of the money will be used to repay Mann Group debt interest; so MNKD nets only 19 million dollars?
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Post by Deleted on Jun 28, 2017 10:20:18 GMT -5
The three options I see for this are that Deerfield did not want any more equity because they never sold the last tranche and are holding it as an investment (although it goes against their MO), that Mannkind did not want to issue at the price Deerfield was asking, or that Mannkind are betting Greenhill can find a US partner/buyer. I know all of that is a statement of the obvious but I think it's worth laying out. My feeling is that it is the last option (US partner/buyer) because otherwise I cannot see why they engaged Greenfield as the strategy is set (There is no money to change direction at this point). Between Locust Walk and Greenhill the bushes are being beaten but it will take time and I think there will have to be another round of dilution. The plus side is that by paying cash to Deerfield immediate dilution is avoided so when it comes it will be off a higher base. After that round Greenhill and/or Locust Walk need to deliver. Obviously my speculation but I thought Deerfield dumped their shares on the market which is what cratered the SP to .65 cents a couple of months back. I guess we won't know until the updated Ownership comes out. |
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Post by casualinvestor on Jun 28, 2017 10:23:41 GMT -5
With scripts in an upward trend, and PPS doing the same, it makes sense to delay dilution for 2-3 months. I think that this is a good and fairly obvious move.
Longs waiting until dilution to buy at a discount may find themselves on the wrong side of rising PPS, *IF* scripts continue to rise significantly. Unfortunately, that's still a big if.
Shorts waiting until dilution for a drop/exit now have to pay 2-3 more months of interest for the opportunity. At some point 80% annual interest is going to hurt, right?
The can has been kicked down the road a bit longer.
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Post by thekid2499 on Jun 28, 2017 10:35:41 GMT -5
This seems like the right move to me and it does show confidence that they think the share price will be higher 2 to 3 months from now than it is today. That means they have to be bullish on something happening: 1) scripts increasing at a faster clip, 2) a partnership with upfront money, or 3) a buyout. I personally think the most likely is #1 which would lead to a higher share price and allow them to dilute at a higher share price. The Brazil deal was extremely concerning to me. No upfront on that partnership put MNKD in a bad position in terms of trying to negotiate other deals with upfront money.
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Post by matt on Jun 28, 2017 10:45:51 GMT -5
A comment someone left on SA says that shares in MNKD are the Mann Group's only (significant) asset. Is that true? If I read it correctly, it says that 10.6 million of the money will be used to repay Mann Group debt interest; so MNKD nets only 19 million dollars? I think these two questions are related. The poster on SA has posited that the Mann Group assets consist principally of MNKD shares. When the Mann Group was created years ago, the price of MNKD was much higher and so the value of the Mann Group, but after the reverse split the 89 million shares (as reported in the March proxy) are now 17.8 million shares. Those are not worth $30.1 million if they were sold today, so one easy way to "use up" the credit line is to capitalize the interest on the balance sheet into the principal balance. To answer the second question, the company only nets $19 million in new cash. This begs two questions: 1. Where is Mike going to get the money to meet the Deerfield debt covenant come September 30? This transaction pretty much destroys the possibility of making it to September without a default if no additional money is raised since it would have been a squeaker even if the full $30.1 million were still available in cash. 2. Does the Mann Group have the $19 million in cash needed to fund this draw-down, or will they have to sell some or all of their MNKD stock to raise it? As a private entity we really don't know what the rest of their balance sheet looks like, but if they are cash poor they may have negotiated to roll the accrued and unpaid interest into the note as that does not require cash from either side. There could be a lot of shares hitting the market in the coming days if they need to raise the rest of the cash. What is clear is that the company needs some new financing options to materialize very quickly. It seems Deerfield has drawn a line in the sand and there will be not more money coming from that source, and now the Mann Group is tapped out as well. |
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