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Post by barnstormer on Jul 4, 2017 9:09:45 GMT -5
Interesting that no one is speculating or talking about Locust Walk in the overall scheme of things. They have after all been engaged to seek new opportunities. New opportunites should bring in cash no?
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Post by straightly on Jul 4, 2017 10:38:19 GMT -5
Interesting that no one is speculating or talking about Locust Walk in the overall scheme of things. They have after all been engaged to seek new opportunities. New opportunites should bring in cash no? No. Often than not, new opportunities spend money. |
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Post by oldfishtowner on Jul 4, 2017 16:38:17 GMT -5
If warrants are issued with exercise dates more than 1 yr in the future, then the shares required to cover the warrants do not need to be issued and registered until such time that they are considered a current liability, with an exercise date of < 1 yr. Most investors (unlike underwriters who have their own set of rules) will insist that shares be reserved against future issuance at the time of the deal regardless of when the warrant expires. In this case the warrants were registered under the S-3 dated April 18, 2016 which was declared effective as of April 27, and the company issued the required 424B5 prospectus supplement on May 10. That should have been the end of it. All I can figure out is that there was some defect in the 424B5 that rendered it inaccurate so it had to be amended. May of 2016 did not seems to be a good time for MNKD compliance since that is the same period where the director warrants went unreported. I suspect the two events are related and that this is truly just correction of minor reporting errors. Why fix the errors now when the warrants are so far underwater? One reason to get the ducks in a row (and this is pure speculation) because the the company may be preparing to reprice the outstanding warrants. A number of companies that have needed to raise capital unilaterally reduced the exercise price of their outstanding warrants in order to stimulate immediate exercise. That might involve a repricing deal that lowers the exercise price so something in the money, say $1.20 per share but only if exercised by July 15, instead of the face value of $7.50. Since the shares are already registered and reserved this would not require additional securities filings other than a one-page 8-K, and it may be the fastest way to get some quick cash. It would be dilutive in the sense that the issued and outstanding shares would increase, but the company can claim they didn't increase authorized shares or sell any new securities which would also be true. The original deal was done by Rodman & Renshaw and this is exactly the kind of transaction they, and their clients, would jump on. If there are 9.7 million warrants outstanding and they get repriced to $1.20, that is potentially $11.6 million in proceeds (less some fees), good for about 45 days of additional runway. Thanks for the insight. Seems like a more likely rationale for what is happening than where my thoughts were going. |
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Post by brotherm1 on Jul 4, 2017 16:47:00 GMT -5
is this a recurrent hedge deal?
VALENCIA, Calif., June 29, 2017 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) (TASE:MNKD) and affiliates of Deerfield Management Company L.P. ("Deerfield") have entered into an exchange and third amendment to their facility agreement (the "Facility Agreement"), pursuant to which MannKind's $10 million principal maturity previously due on July 18, 2017 will be extended to October 31, 2017, subject to certain conditions, the existing minimum liquidity covenant is reduced as fully described below, and Deerfield will exchange $5 million of the Amended and Restated 9.75% Senior Convertible Notes due December 2019 (the "Tranche 4 Notes") for 3,584,230 shares of MannKind's common stock (the "Exchange Shares"). The exchange price for the Exchange Shares is $1.395 per share. The principal amount being repaid and exchanged under the Tranche 4 Notes represents the principal amount that would have otherwise become due and payable in December 2019.
Pursuant to the terms of the exchange and amendment agreement, Deerfield has agreed to extend its existing $10 million principal maturity from July 18, 2017 to August 31, 2017 and, subject to certain conditions on that date, further extend it to October 31, 2017.
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Advertising/Reversed starting is 15 days. The new label dates were August?
I think what it is is Deerfield going Greenhill room to work. My gut feeling is that Greenhill is Deerfield's idea and Greenhill are going to go after a partner or sale aggressively. I am quite tempted to buy back in and hedge with Puts in October. It looks like Deerfield is giving Mannkind until October 31st to find a deal and avoid dilution. Any thoughts on who might be interersted? I know if I owned Amphastar I would be. |
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Post by mnkdfann on Jul 4, 2017 22:14:29 GMT -5
Interesting that no one is speculating or talking about Locust Walk in the overall scheme of things. They have after all been engaged to seek new opportunities. New opportunites should bring in cash no? We've been down this route several times before. SUCCESSFUL new opportunities bring in cash. E.g. Jan. 22 2016: Robert Sacher (former Mannind psuedo-perma-bull) "In Pfeffer's plan, there are ... operational efforts to create revenue through new licensing opportunities with MannKind's patented technology ..." seekingalpha.com/article/3826966-mannkind-launches-new-direction-afrezzaIIRC, that got us all of 1 million from RLS. And Pfeffer's (effectively) gone. |
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Post by mydogskip on Jul 4, 2017 23:28:03 GMT -5
Interesting that no one is speculating or talking about Locust Walk in the overall scheme of things. They have after all been engaged to seek new opportunities. New opportunites should bring in cash no? We've been down this route several times before. SUCCESSFUL new opportunities bring in cash. E.g. Jan. 22 2016: Robert Sacher (former Mannind psuedo-perma-bull) "In Pfeffer's plan, there are ... operational efforts to create revenue through new licensing opportunities with MannKind's patented technology ..." seekingalpha.com/article/3826966-mannkind-launches-new-direction-afrezzaIIRC, that got us all of 1 million from RLS. And Pfeffer's (effectively) gone. The reality is that Technosphere is not commercially viable at this time and may never be. There was no significant licensee of the technology in the history of the company. Technovax never materialized. Torrey Pines never materialized. There is the inhaled oxytocin by a non profit for third world mothers that is YEARS away from being approved assuming there is funding from the UN/WHO. There may have been informal talks over the years but nothing materialized. RLS is the only one and no one knows a thing about where they are in the testing. Everything rests on Afrezza. And so far, it's been an utter failure. That's the reality of the situation. One can only hope that the company can find some sort of funding in the next few months to help keep the company viable. |
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Post by mytakeonit on Jul 5, 2017 15:26:55 GMT -5
That warrant fiasco on an early closing day (Monday) caused a loss of 8 cents. Today, we have another 9 cent loss because brokerage houses didn't put a disclaimer on the Monday alternative fact news. People looking at it today probably thought that it was real and current. (I use E*Trade and know that they aren't the best for putting out information.)
Hmmm ... maybe I should have bought more shares?
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Post by Deleted on Jul 5, 2017 15:50:00 GMT -5
Ahhhh Robert Sacher....I remember when I was a green investor and thought he knew what he was talking about. A valuable lesson learned is anyone can write for seeking alpha.......
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Post by mnkdfann on Jul 5, 2017 16:35:59 GMT -5
That warrant fiasco on an early closing day (Monday) caused a loss of 8 cents. Today, we have another 9 cent loss because brokerage houses didn't put a disclaimer on the Monday alternative fact news. People looking at it today probably thought that it was real and current. (I use E*Trade and know that they aren't the best for putting out information.) We'll never know, but I personally doubt that was the reason for the drop. I think more likely the price was being pegged around 1.50 until after financing had been settled with Deerfield and The Mann Group, and with that support gone it began dropping back. We'll see. |
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Post by mnkdfann on Jul 5, 2017 16:43:52 GMT -5
That warrant fiasco on an early closing day (Monday) caused a loss of 8 cents. Today, we have another 9 cent loss because brokerage houses didn't put a disclaimer on the Monday alternative fact news. People looking at it today probably thought that it was real and current. (I use E*Trade and know that they aren't the best for putting out information.) Besides, WHAT warrant fiasco? Any investor as naive and clueless as the ones you describe would have seen the $7.50 warrant (max projected) exercise price and gone all in, taking that $7.50 as an indicator that great news for the share price is coming soon. |
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Post by uvula on Jul 5, 2017 20:08:06 GMT -5
Mydogskip,
While I agree with most of what you said, I don't think we can say that Afrezza has been a failure. It us true that financially it leaves much to be desired but as a drug it seems to work very well.
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Post by falconquest on Jul 6, 2017 6:06:48 GMT -5
Mydogskip, While I agree with most of what you said, I don't think we can say that Afrezza has been a failure. It us true that financially it leaves much to be desired but as a drug it seems to work very well. uvula, You are correct, Afrezza/Technosphere is an incredibly innovative success. Unfortunately if Mannkind can't find a path forward to commercialization then many patients will miss out on its benefits. I believe it takes a person committed to improving their health, with the right tools (CGM) that can live a much better life. Mannkind needs to get that message out and hopefully some of the steps being taken now will do that. Until sales increase however, Afrezza remains a dismal failure from a business standpoint. |
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Post by uvula on Jul 6, 2017 7:30:48 GMT -5
Falcon said it much better than I did. (For some reason I can't give thumbs up from my android phone.)
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Post by Deleted on Jul 6, 2017 8:49:26 GMT -5
Mydogskip, While I agree with most of what you said, I don't think we can say that Afrezza has been a failure. It us true that financially it leaves much to be desired but as a drug it seems to work very well. uvula, You are correct, Afrezza/Technosphere is an incredibly innovative success. Unfortunately if Mannkind can't find a path forward to commercialization then many patients will miss out on its benefits. I believe it takes a person committed to improving their health, with the right tools (CGM) that can live a much better life. Mannkind needs to get that message out and hopefully some of the steps being taken now will do that. Until sales increase however, Afrezza remains a dismal failure from a business standpoint. I have always thought this. Americans want the magic pill for everything. No one wants to put the work in. Afrezza will dramatically improve your life if you put the work in. However, the contradicts type two diabetics. A lot of people end up with type two diabetes because they do not put the work in. Some are lazy but most do not realize the food they are eating is poison. . |
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Post by casualinvestor on Jul 6, 2017 10:00:48 GMT -5
I also had doubt about Afrezza once I learned about titration issues (dosing and timing dependent on meal content and the person's metabolism) and needing to take the dose correctly (it helps if the angle of the inhaler is right, and the fact that it's been described like sucking dust through a straw). There are a *lot* of T1 and T2 diabetics. If a large % people not committed to their health are trying Afrezza, and abandoning it because they don't get it...then their results will overshadow the people that are getting good results.
I've stuck with the stock, because it is the most effective tool against high glucose when done right. It just needs to get into the hands of the x.x% of people that will put in the effort necessary. I think that VDEX and One Drop will be able to provide good assistance to expand the successful population. But if the training they provide is necessary for wider adoption, that will slow down increased sales.
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