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Post by matt on Jun 29, 2017 7:19:20 GMT -5
Is there really a discussion that the Trust is not going to come up with the money and Mike did not talk to them prior to the PR? It is a valid question to ask, but I think it is safe to assume that Mann Group will come up with the cash as agreed. The better question to ask is how will they come up with the money. Mann Group holds a big block of shares which in the worst case can be sold to generate the cash, and as noted, they have 60 days to make good on their funding commitment. If they have to sell shares to raise cash, that will affect the PPS for everybody. If they have cash squirreled away on the balance sheet, that is a better scenario. However, the fact that the company used up $10 million of their last credit line by voluntarily capitalizing accrued interest into the principal of the note suggests that writing a check for the whole $30 million was not feasible and that some share liquidation should be expected. How many shares is the question but even if they have to sell 100% of their holding I expect that they will come up with the money as promised. And of course Mike talked to them. You just don't make a demand for an eight figure sum from your largest shareholder without consulting them in advance. |
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Post by sla55 on Jun 29, 2017 8:03:36 GMT -5
investors.mannkindcorp.com/releasedetail.cfm?ReleaseID=1031777VALENCIA, Calif., June 29, 2017 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) and (TASE:MNKD), announced today that it has delivered a funding request notification to the Mann Group LLC pursuant to the terms of the Mann Group Loan Arrangement (the "Loan Arrangement") to draw the remaining $30.1 million of availability thereunder. Upon funding, MannKind will concurrently use $10.6 million of the proceeds to capitalize all accrued but unpaid interest under the Loan Arrangement. Under a subordination agreement with Deerfield, the Mann Group previously agreed with Deerfield not to demand or accept any payment under the Loan Arrangement until MannKind's payment obligations to Deerfield have been satisfied in full, except for payments (such as interest payable in-kind) that are permitted under the subordination agreement. After the request is funded, MannKind will (i) receive $19.4 million of cash, (ii) have drawn the full amount available under the Loan Arrangement, and (iii) have paid all accrued interest outstanding thereunder as of June 30, 2017. The outstanding balance under the Loan Arrangement after this transaction will be $79.7 million, which is due on January 5, 2020. "This advance will meaningfully increase our cash on hand as we continue to explore potential opportunities to enhance our capital structure. We truly appreciate our working relationship with the Mann Group and their continued support of MannKind," said Michael Castagna, Chief Executive Officer of MannKind Corporation. "In addition, we have engaged Greenhill & Co., Inc. as a financial and strategic advisor, a firm that we believe will provide independent advice as I transition into my new role." Isn't it the same PR as the one from yesterday?
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Post by promann on Jun 29, 2017 8:25:11 GMT -5
Yes it looks the same to me. Just the date has changed
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Post by agedhippie on Jun 29, 2017 9:58:16 GMT -5
Is there really a discussion that the Trust is not going to come up with the money and Mike did not talk to them prior to the PR? It is a valid question to ask, but I think it is safe to assume that Mann Group will come up with the cash as agreed. The better question to ask is how will they come up with the money. Mann Group holds a big block of shares which in the worst case can be sold to generate the cash, and as noted, they have 60 days to make good on their funding commitment. If they have to sell shares to raise cash, that will affect the PPS for everybody. If they have cash squirreled away on the balance sheet, that is a better scenario. However, the fact that the company used up $10 million of their last credit line by voluntarily capitalizing accrued interest into the principal of the note suggests that writing a check for the whole $30 million was not feasible and that some share liquidation should be expected. How many shares is the question but even if they have to sell 100% of their holding I expect that they will come up with the money as promised. And of course Mike talked to them. You just don't make a demand for an eight figure sum from your largest shareholder without consulting them in advance. If the Mann Group do need to sell to raise the money then the new Deerfield agreement lets the Mann Group come up with the money in a more orderly manner. They could take the whole 60 days and sell slowly if need be to minimize any downward pressure from selling. Previously the Deerfield payment only gave them a month, now they have two months. |
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Post by brotherm1 on Jun 29, 2017 10:35:28 GMT -5
Why ever on this earth would The Mann Group have their source of funding for their loan obligation to MNKD in the form of MNKD stock? Where did this ludicrous speculation start ? That's absurd.
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Post by mnkdfann on Jun 29, 2017 10:47:33 GMT -5
Why ever on this earth would The Mann Group have their source of funding for their loan obligation to MNKD in the form of MNKD stock? Where did this ludicrous speculation start ? That's absurd. So you think they'll sell their summer HQ in France or their mega-yacht instead to raise the cash? What other significant assets (besides stock) do you imagine TMG has to work with?  |
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Post by brotherm1 on Jun 29, 2017 10:50:47 GMT -5
Get real.
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Post by mango on Jun 29, 2017 10:59:40 GMT -5
The Alfred Mann Institutes all receive $ from the spin-out companies. Then there is the Mann Foundation. The trustees (Al's wife and a couple other folks) are affiliated with some of these Institutes and the Foundation. Pretty easy to understand where $ can come from.
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Post by Deleted on Jun 29, 2017 11:01:01 GMT -5
matt "Mann Group holds a big block of shares which in the worst case can be sold to generate the cash" Nice innuendo!
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Post by kbrion77 on Jun 29, 2017 11:56:15 GMT -5
The Alfred Mann Institutes all receive $ from the spin-out companies. Then there is the Mann Foundation. The trustees (Al's wife and a couple other folks) are affiliated with some of these Institutes and the Foundation. Pretty easy to understand where $ can come from. How is that easy? Do you know what type of financial condition the Group is in? Saying the Group is using spin off dollars to fund MNKD is just as speculating as the Group selling MNKD shares to fund the company. |
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Post by falconquest on Jun 29, 2017 12:18:00 GMT -5
The Alfred Mann Institutes all receive $ from the spin-out companies. Then there is the Mann Foundation. The trustees (Al's wife and a couple other folks) are affiliated with some of these Institutes and the Foundation. Pretty easy to understand where $ can come from. How is that easy? Do you know what type of financial condition the Group is in? Saying the Group is using spin off dollars to fund MNKD is just as speculating as the Group selling MNKD shares to fund the company. I find it interesting how people squabble over information that can't be known. |
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Post by matt on Jun 29, 2017 13:54:13 GMT -5
matt "Mann Group holds a big block of shares which in the worst case can be sold to generate the cash" Nice innuendo! You think that 17 million shares hitting the market in the next 40 trading days is the best case? That would not be good for the PPS, and certainly if the Group has cash they can use it would be ideal, but all those solutions are better than not coming up with the cash because if they don't then the whole Deerfield arrangement falls apart (there is a covenant to that effect). Root for the money fairy to fly down and fix the problem if you like, but if Mann Group was that fairy then the deal would not have gone together they way it did. Be realistic about what is about to happen and you will be better positioned to take advantage of it when the time comes. |
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Post by promann on Jun 29, 2017 14:00:47 GMT -5
matt "Mann Group holds a big block of shares which in the worst case can be sold to generate the cash" Nice innuendo! You think that 17 million shares hitting the market in the next 40 trading days is the best case? That would not be good for the PPS, and certainly if the Group has cash they can use it would be ideal, but all those solutions are better than not coming up with the cash because if they don't then the whole Deerfield arrangement falls apart (there is a covenant to that effect). Root for the money fairy to fly down and fix the problem if you like, but if Mann Group was that fairy then the deal would not have gone together they way it did. Be realistic about what is about to happen and you will be better positioned to take advantage of it when the time comes. Matt can you tell us how it is you know that the Mann Group has to sell shares to loan MNKD ? I was under the impression that Al set up a trust with the 30.1 million so it would be readily available if MNKD needed to tap into it. I'm pretty sure that's what was said at one of the calls. If the Mann group has to sell shares to lend then that's a really bad thing and we should all know where to find this information thanks |
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Post by mango on Jun 29, 2017 14:09:55 GMT -5
The Alfred Mann Institutes all receive $ from the spin-out companies. Then there is the Mann Foundation. The trustees (Al's wife and a couple other folks) are affiliated with some of these Institutes and the Foundation. Pretty easy to understand where $ can come from. How is that easy? Do you know what type of financial condition the Group is in? Saying the Group is using spin off dollars to fund MNKD is just as speculating as the Group selling MNKD shares to fund the company. I said "where money can come from". I never claimed it in fact did. The Mann Group "could" get money from the Foundation. It "could" get money from investments. It gets money from somewhere/somehow. |
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Post by mytakeonit on Jun 29, 2017 14:20:13 GMT -5
I agree with falcon's statement ... "I find it interesting how people squabble over information that can't be known." So for now ... it is just noise. We should all just go to a cabaret and discuss money ... www.youtube.com/watch?v=PIAXG_QcQNU |
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