|
|
Post by centralcoastinvestor on Jul 3, 2017 12:07:04 GMT -5
Is it possible that MannKind wants the ability to quickly monetize a dramatic increase in share price? If, and I repeat if, Mnkd released news that caused the share price to jump to $10 a share, then these warrants when sold would yield nearly one year's worth of operating capital. The last thing MannKind wants is a huge jump in share price without the ability to extend their cash runway. If MannKind management believes that dramatic good news is coming, it would be a huge mistake to set the warrant price at $1.40 instead of $7.5. I sure hope good news is coming.
|
|
|
|
Post by oldfishtowner on Jul 3, 2017 12:18:17 GMT -5
Is it possible that MannKind wants the ability to quickly monetize a dramatic increase in share price? If, and I repeat if, Mnkd released news that caused the share price to jump to $10 a share, then these warrants when sold would yield nearly one year's worth of operating capital. The last thing MannKind wants is a huge jump in share price without the ability to extend their cash runway. If MannKind management believes that dramatic good news is coming, it would be a huge mistake to set the warrant price at $1.40 instead of $7.5. I sure hope good news is coming. MNKD is not selling warrants. The warrants were issued last year. The registration statement is for the stock underlying the warrants. Without the stock registration, if the warrants are exercised, it is a non-cash exchange. MNKD receives no money, period. The registration is only necessary to insure that, if the PPS exceeds the exercise price of the warrants and the warrants are exercised, MNKD receives cash (i.e. $7.50/share) for the stock issued to the holders of the warrants. |
|
|
|
Post by centralcoastinvestor on Jul 3, 2017 12:23:36 GMT -5
Is it possible that MannKind wants the ability to quickly monetize a dramatic increase in share price? If, and I repeat if, Mnkd released news that caused the share price to jump to $10 a share, then these warrants when sold would yield nearly one year's worth of operating capital. The last thing MannKind wants is a huge jump in share price without the ability to extend their cash runway. If MannKind management believes that dramatic good news is coming, it would be a huge mistake to set the warrant price at $1.40 instead of $7.5. I sure hope good news is coming. MNKD is not selling warrants. The warrants were issued last year. The registration statement is for the stock underlying the warrants. Without the stock registration, if the warrants are exercised, it is a non-cash exchange. MNKD receives no money, period. The registration is only necessary to insure that, if the PPS exceeds the exercise price of the warrants and the warrants are exercised, MNKD receives cash (e.g. the $7.50/share for the Series A warrants) for the stock issued to the holders of the warrants. Did Mnkd actually sell the warrants and have already received those proceeds? |
|
|
|
Post by oldfishtowner on Jul 3, 2017 12:35:41 GMT -5
MNKD is not selling warrants. The warrants were issued last year. The registration statement is for the stock underlying the warrants. Without the stock registration, if the warrants are exercised, it is a non-cash exchange. MNKD receives no money, period. The registration is only necessary to insure that, if the PPS exceeds the exercise price of the warrants and the warrants are exercised, MNKD receives cash (e.g. the $7.50/share for the Series A warrants) for the stock issued to the holders of the warrants. Did Mnkd actually sell the warrants and have already received those proceeds? Yes. From the 2Q176 report: " In May 2016, the Company received net proceeds of $47.4 million upon completion of a registered direct public offering..." From 5/9/16 PR: "VALENCIA, Calif., May 09, 2016 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD) today announced the pricing of a registered direct public offering of up to 48,543,692 shares of common stock and warrants to purchase up to an aggregate of 48,543,692 shares of common stock to select institutional investors. Each share of common stock is being sold together with a warrant to purchase 0.75 of a share of common stock (A Warrants) and a warrant to purchase 0.25 of a share of common stock (B Warrants) for a combined purchase price of $1.03. The A Warrants will be exercisable at a price of $1.50 per share beginning upon issuance and will expire two years thereafter. The B Warrants will be exercisable at a price of $1.50 per share beginning in May 2017 and expire 18 months thereafter. The shares of common stock and the warrants will be immediately separable and will be issued separately. The offering is expected to close on or about May 12, 2016, subject to customary closing conditions." "The total gross proceeds from the offering are expected to be approximately $50.0 million. After deducting the placement agent's fees, the net proceeds to MannKind are expected to be approximately $47.5 million. MannKind intends to use the net proceeds from the offering for working capital and general corporate purposes." |
|
|
|
Post by centralcoastinvestor on Jul 3, 2017 12:38:25 GMT -5
Did Mnkd actually sell the warrants and have already received those proceeds? From the 2Q176 report: " In May 2016, the Company received net proceeds of $47.4 million upon completion of a registered direct public offering..." From 5/9/16 PR: "VALENCIA, Calif., May 09, 2016 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD) today announced the pricing of a registered direct public offering of up to 48,543,692 shares of common stock and warrants to purchase up to an aggregate of 48,543,692 shares of common stock to select institutional investors. Each share of common stock is being sold together with a warrant to purchase 0.75 of a share of common stock (A Warrants) and a warrant to purchase 0.25 of a share of common stock (B Warrants) for a combined purchase price of $1.03. The A Warrants will be exercisable at a price of $1.50 per share beginning upon issuance and will expire two years thereafter. The B Warrants will be exercisable at a price of $1.50 per share beginning in May 2017 and expire 18 months thereafter. The shares of common stock and the warrants will be immediately separable and will be issued separately. The offering is expected to close on or about May 12, 2016, subject to customary closing conditions." "The total gross proceeds from the offering are expected to be approximately $50.0 million. After deducting the placement agent's fees, the net proceeds to MannKind are expected to be approximately $47.5 million. MannKind intends to use the net proceeds from the offering for working capital and general corporate purposes." Thanks for the clarification. It appeared to me that these were new warrants. |
|
|
|
Post by oldfishtowner on Jul 3, 2017 12:52:22 GMT -5
From the 2Q176 report: " In May 2016, the Company received net proceeds of $47.4 million upon completion of a registered direct public offering..." From 5/9/16 PR: "VALENCIA, Calif., May 09, 2016 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD) today announced the pricing of a registered direct public offering of up to 48,543,692 shares of common stock and warrants to purchase up to an aggregate of 48,543,692 shares of common stock to select institutional investors. Each share of common stock is being sold together with a warrant to purchase 0.75 of a share of common stock (A Warrants) and a warrant to purchase 0.25 of a share of common stock (B Warrants) for a combined purchase price of $1.03. The A Warrants will be exercisable at a price of $1.50 per share beginning upon issuance and will expire two years thereafter. The B Warrants will be exercisable at a price of $1.50 per share beginning in May 2017 and expire 18 months thereafter. The shares of common stock and the warrants will be immediately separable and will be issued separately. The offering is expected to close on or about May 12, 2016, subject to customary closing conditions." "The total gross proceeds from the offering are expected to be approximately $50.0 million. After deducting the placement agent's fees, the net proceeds to MannKind are expected to be approximately $47.5 million. MannKind intends to use the net proceeds from the offering for working capital and general corporate purposes." Thanks for the clarification. It appeared to me that these were new warrants. The SA article which confused folks was obviously in error. You can decide for yourself whether it was intentional or not. |
|
|
|
Post by agedhippie on Jul 3, 2017 13:04:04 GMT -5
Thanks for the clarification. It appeared to me that these were new warrants. The SA article which confused folks was obviously in error. You can decide for yourself whether it was intentional or not. Wow! That wins my prize for the most misleading SA headline I have seen - Mannkind to offer warrants. It's nothing of the sort and they ought to fix that. |
|
|
|
Post by radgray68 on Jul 3, 2017 13:07:17 GMT -5
While Matt has been streamlining operations, lowering costs and basically playing hatchet man this last year, a few balls got dropped. My first impression, we're late in a filing or two, big whoop. It's not like the SEC does anything about anything anymore. You fire or lay off like two thirds of the workforce, something has to give. Nothing to see here, move along. |
|
|
|
Post by akemp3000 on Jul 3, 2017 13:33:33 GMT -5
The S-1 form declaring the warrants to be issued was announced directly by MNKD today, July 3, 2017. Note the following box was not checked which indicates this registration of warrants is NEW and not the same as those referred to in the past.
"If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐"
Thus far, there are a lot of good comments as well as some misleading comments. MNKD should clarify this asap...which hopefully they're planning to do anyway.
|
|
|
|
Post by derek2 on Jul 3, 2017 13:39:01 GMT -5
The S-1 form declaring the warrants to be issued was announced directly by MNKD today, July 3, 2017. Note the following box was not checked which indicates this registration of warrants is NEW and not the same as those referred to in the past. "If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐" Thus far, there are a lot of good comments as well as some misleading comments. MNKD should clarify this asap...which hopefully they're planning to do anyway. The S-1 did _not_ declare the warrants to be issued. It declared 10M shares to be registered in order to cover the previously issued warrants if they eventually came into the money and were executed. |
|
|
|
Post by silentknight on Jul 3, 2017 13:43:11 GMT -5
The SA article which confused folks was obviously in error. You can decide for yourself whether it was intentional or not. Wow! That wins my prize for the most misleading SA headline I have seen - Mannkind to offer warrants. It's nothing of the sort and they ought to fix that. To be fair, MNKD did file the report TODAY, so at first glance it does appear to be new information. I'm not a fan of SA but all this started because MNKD couldn't keep their financial house in order to begin with. Better late than never I suppose, but it only further reinforces the idea that MNKD management is inept. If these warrants were issued in 2016 and we're getting a SEC filing now, that's just plain embarrassing, not to mention confusing. |
|
|
|
Post by kball on Jul 3, 2017 14:39:48 GMT -5
Wow! That wins my prize for the most misleading SA headline I have seen - Mannkind to offer warrants. It's nothing of the sort and they ought to fix that. To be fair, MNKD did file the report TODAY, so at first glance it does appear to be new information. I'm not a fan of SA but all this started because MNKD couldn't keep their financial house in order to begin with. Better late than never I suppose, but it only further reinforces the idea that MNKD management is inept. If these warrants were issued in 2016 and we're getting a SEC filing now, that's just plain embarrassing, not to mention confusing.Perhaps one of things considered by board when they made the CEO change recently? |
|
|
|
Post by bmkb24 on Jul 3, 2017 14:40:27 GMT -5
Wow! That wins my prize for the most misleading SA headline I have seen - Mannkind to offer warrants. It's nothing of the sort and they ought to fix that. To be fair, MNKD did file the report TODAY, so at first glance it does appear to be new information. I'm not a fan of SA but all this started because MNKD couldn't keep their financial house in order to begin with. Better late than never I suppose, but it only further reinforces the idea that MNKD management is inept. If these warrants were issued in 2016 and we're getting a SEC filing now, that's just plain embarrassing, not to mention confusing. IMO... Mankind is just cleaning up the mess in their past filings/paperwork to avoid any hiccups during a potential BO or RM... If it's a reverse merger I won't be surprised if ONE DROP emerges as a potential candidate ... Well, time will tell. |
|
|
|
Post by agedhippie on Jul 3, 2017 14:45:00 GMT -5
Wow! That wins my prize for the most misleading SA headline I have seen - Mannkind to offer warrants. It's nothing of the sort and they ought to fix that. To be fair, MNKD did file the report TODAY, so at first glance it does appear to be new information. I'm not a fan of SA but all this started because MNKD couldn't keep their financial house in order to begin with. No, this started because an editor on SA got sloppy. If SA want to report news as it happens then by definition everything is TODAY since it is reported as it breaks. Either the editor failed to read the filing or did not understand what he was reading, but either way that editor failed to do his job - plain and simple. What should it have looked like? Well here is the Reuters brief - link |
|
|
|
Post by agedhippie on Jul 3, 2017 14:46:35 GMT -5
IMO... Mankind is just cleaning up the mess in their past filings/paperwork to avoid any hiccups during a potential BO or RM... If it's a reverse merger I won't be surprised if ONE DROP emerges as a potential candidate ... Well, time will tell. Personally I would be shocked. One Drop has under $10M in capital looking at their funding rounds. |
|
