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Post by akemp3000 on Aug 10, 2017 12:17:11 GMT -5
Matt brought up the sale-lease back as one of many options for a reason and it's one that's increasingly common in real estate. Even if the plant were to sell at only $20M, this could provide funding for an additional quarter based on continued script growth. This type of sale-leaseback might include the building and equipment and could easily occur at MUCH higher than $20M. It's highly doubtful this will be the option chosen but it's good to hear Mike C will leave no stone unturned to extend MNKD's runway to success:
"A sale/leaseback is a transaction wherein the owner of a property sells that property and then leases it back from the buyer at a rental rate and lease term that is acceptable to the new owner (and typically on financial terms that are consistent with the marketplace). The primary purpose of a sale/leaseback is to raise money or to free up the owner’s equity (that is invested in the property) for other uses, while retaining use of the facility. Although the type of property involved is usually commercial, sale/leasebacks can also apply to equipment, vehicles or aircraft. In commercial real estate, sale/leaseback transactions can include almost any property type, ranging from large banks to industrial warehouse/distribution buildings to corporate offices to restaurants".
In a typical scenario, a corporation will sell its real estate asset(s) to another party, such as a real estate investment trust (REIT) or an institutional or private investor, and then lease the property back at a rental rate based on current market rents. There are numerous tax and investment implications and advantages.
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Post by mango on Aug 10, 2017 12:20:58 GMT -5
Maybe they will sell the plant to the Mann Group, LLC or the Mann Foundation etc. and get a cheap lease agreement.
Al Mann was also the largest shareholder of the Teuza Fund. Several millions sitting in that fund. Wonder when and what it will be used for.
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Post by lakon on Aug 13, 2017 10:53:33 GMT -5
Maybe they will sell the plant to the Mann Group, LLC or the Mann Foundation etc. and get a cheap lease agreement. Al Mann was also the largest shareholder of the Teuza Fund. Several millions sitting in that fund. Wonder when and what it will be used for. 1. How about a transfer of ownership and lease back for debt swap? 2. How about a new preferred offering to clear any remaining debt? |
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Post by agedhippie on Aug 13, 2017 11:39:29 GMT -5
Maybe they will sell the plant to the Mann Group, LLC or the Mann Foundation etc. and get a cheap lease agreement. Al Mann was also the largest shareholder of the Teuza Fund. Several millions sitting in that fund. Wonder when and what it will be used for. 1. How about a transfer of ownership and lease back for debt swap? 2. How about a new preferred offering to clear any remaining debt? Deerfield would have to be repaid before the title could be released to a buyer since they hold the mortgage. Mannkind could do a deal with Deerfield to give the plant to them in a swap for debt, and then lease back. Deerfield might do that since it gives clear title to them. However Mannkind would not get any money out of it, just debt reduction. |
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Post by lakon on Aug 14, 2017 13:04:47 GMT -5
1. How about a transfer of ownership and lease back for debt swap? 2. How about a new preferred offering to clear any remaining debt? Deerfield would have to be repaid before the title could be released to a buyer since they hold the mortgage. Mannkind could do a deal with Deerfield to give the plant to them in a swap for debt, and then lease back. Deerfield might do that since it gives clear title to them. However Mannkind would not get any money out of it, just debt reduction. No, Deerfield would have to agree before the title could be released to someone else. There's a difference. That's what restructuring is all about. Someone could make them an offer they cannot refuse... Yes, I suspect some kind of deal with Deerfield is in the works, hence, the interim agreement to allow postponement of payment for a few months as well as adjusting the cash covenant requirements. One never knows what the terms might be, but I would not rule out getting money out of it. Kind of like SNY, everyone said no way, but see what happened. Sure you can argue semantics that the debt swap for plant is separate from any other equity or preferred offering, but in its entirety, the deal might only work IF both parties get something out of it to sustain MNKD as a going concern. It all depends how Deerfield views the potential business opportunity going forward. If they thought MNKD had no chance, why give any extra time? I think Deerfield stands to make a lot more money betting on the future of MNKD rather than squeezing them for real estate at this time. |
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Post by straightly on Aug 14, 2017 17:52:59 GMT -5
Deerfield would have to be repaid before the title could be released to a buyer since they hold the mortgage. Mannkind could do a deal with Deerfield to give the plant to them in a swap for debt, and then lease back. Deerfield might do that since it gives clear title to them. However Mannkind would not get any money out of it, just debt reduction. No, Deerfield would have to agree before the title could be released to someone else. There's a difference. That's what restructuring is all about. Someone could make them an offer they cannot refuse... Yes, I suspect some kind of deal with Deerfield is in the works, hence, the interim agreement to allow postponement of payment for a few months as well as adjusting the cash covenant requirements. One never knows what the terms might be, but I would not rule out getting money out of it. Kind of like SNY, everyone said no way, but see what happened. Sure you can argue semantics that the debt swap for plant is separate from any other equity or preferred offering, but in its entirety, the deal might only work IF both parties get something out of it to sustain MNKD as a going concern. It all depends how Deerfield views the potential business opportunity going forward. If they thought MNKD had no chance, why give any extra time? I think Deerfield stands to make a lot more money betting on the future of MNKD rather than squeezing them for real estate at this time. These dates with Deerfield meant something, probably some sales goals. We had to show the trend so there is light at the end of tunnel. |
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Post by Deleted on Oct 10, 2017 7:00:11 GMT -5
I am having a difficult time believing the low valuations some people are placing on it. This plant has the potential to create valued products in the hundreds of millions of dollars. Someone please enlighten me how it could be valued only for its land, building and salvage value of equipment.
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Post by uvula on Oct 10, 2017 7:33:23 GMT -5
If you spend 20k having a portrait painted of yourself how much is it worth to other people? Probably just the cost of the frame. The mnkd factory is kind of like that.
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Post by therealisaching on Oct 10, 2017 7:40:13 GMT -5
I am having a difficult time believing the low valuations some people are placing on it. This plant has the potential to create valued products in the hundreds of millions of dollars. Someone please enlighten me how it could be valued only for its land, building and salvage value of equipment. To a lender its only worth what they can sell or lease to a new buyer/tenant. |
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Post by rockstarrick on Oct 10, 2017 7:47:29 GMT -5
If you spend 20k having a portrait painted of yourself how much is it worth to other people? Probably just the cost of the frame. The mnkd factory is kind of like that. “The Mannkind factory IS kind of like that” actollay, none of us know for sure what the factory is worth to anyone considering such a deal, so I guess we could say the Factory MAY only be worth xxxdollars, but is could easily be worth a lot more too, it depends on the buyer and the deal that they and Mannkind have agreed to. Personally, I don’t think for a second, that Mannkind will ever sell the Plant without selling Afrezza and the entire process with it !! What would that be worth ?? A little more than the land and buildings I believe. time to hit the trail have a great day everybody. 🇺🇸 |
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Post by Deleted on Oct 10, 2017 7:47:45 GMT -5
To an investor it is worth future net profit.
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Post by agedhippie on Oct 10, 2017 7:57:07 GMT -5
To an investor it is worth future net profit. Then sell it to an investor. If you use it to secure a loan with a commercial lender though it only has scrap value. |
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Post by Deleted on Oct 10, 2017 8:11:37 GMT -5
That is what shorts want you to believe.
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Post by mnholdem on Oct 10, 2017 8:14:17 GMT -5
@kastanes
You made your point that you consider the plant to be more valuable than what most accountants would tell you. There's no need to keep beating this drum, my friend.  |
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Post by cjc04 on Oct 10, 2017 8:17:04 GMT -5
To an investor it is worth future net profit. I think the part you're forgetting is that the only products this state of the art facility can produce are Technosphere products. So, until Technosphere products prove they have a future, the state of the art facility is just a building and land. I think we're almost there though, but it won't matter. IMO financing will be secured and we will never sell the Danbury plant unless it's part of a partial buy out. |
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