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Post by babaoriley on Oct 2, 2017 12:27:57 GMT -5
And Blackbirds should know plenty about needing a long runway!
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Post by casualinvestor on Oct 2, 2017 12:47:52 GMT -5
So, if the ATM has increased in size by $40 million, it looks like further dilution (aside from the 1.3 million already traded) will be pushed off for a few more months? The shares are there and they can wait for higher PPS. I guess this is what Mike was talking about with alternative means of financing.
Does anyone know when the first mandatory large debt repayment is going to be, and for how much?
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Post by ghochr on Oct 2, 2017 12:57:57 GMT -5
There was no money raised. There was an exchange of shares for warrants outstanding. 1.3MM shares issued in exchange for removing the reserve of 8.4MM shares that couldve been issued by the warrants. Brings the total available shares that could be issued up to 22.4MM.
Also there was a restriction under the warrant agreement that MNKD could only tap the ATM for $10MM. They can now use the full $50MM available.
My opinion here is that it doesnt sound like they want to go this way, but have now put another tool in their belt for leverage.
22.4 million available shares possibly could be issued at approximately $2 to generate $45 million in new funds for MNKD. With the ATM limit up to $50 million (is $10 million already drawn?), this would make another $40 million available.
Together, that is $85 million to draw upon if needed. That should lengthen the runway considerably from what it was prior to today.
ATM also uses the same outstanding shares . So you cannot add them both $
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Post by cjm18 on Oct 2, 2017 13:00:51 GMT -5
So, if the ATM has increased in size by $40 million, it looks like further dilution (aside from the 1.3 million already traded) will be pushed off for a few more months? The shares are there and they can wait for higher PPS. I guess this is what Mike was talking about with alternative means of financing. Does anyone know when the first mandatory large debt repayment is going to be, and for how much? 47m due between may and August. Can't recall the size of the May debt. ATM is dilution. Is it not?
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Post by babaoriley on Oct 2, 2017 13:04:48 GMT -5
Yes, ATM is dilution, but it's modest compared with floating a new, say $60 million offering - can you imagine that? Price would tank materially. This way, they sell the shares slowly, and the effect is minimal. If other good things happen in the interim, it will make raising money proportionately easier. And if we can ever get a big lump sum payment for something, that would really ring the bell.
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Post by factspls88 on Oct 2, 2017 15:47:43 GMT -5
Thanks peppy. Of all times for this to happen I'm in a place where I couldn't download the webcast. Thankfully it's happy news. The pieces are all falling into place. I have complete confidence that Afrezza will be a big success. JMHO 😉
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Post by MnkdWASmyRtrmntPlan on Oct 2, 2017 20:52:29 GMT -5
22.4 million available shares possibly could be issued at approximately $2 to generate $45 million in new funds for MNKD. With the ATM limit up to $50 million (is $10 million already drawn?), this would make another $40 million available.
Together, that is $85 million to draw upon if needed. That should lengthen the runway considerably from what it was prior to today.
ATM also uses the same outstanding shares . So you cannot add them both $ OK, so then we have 22.4 million shares, or about $45 million at today's price then ... that's it, right? And $47 million is due between May and August. Well, that doesn't sound toooo bad. I'm thinking our new cash burn rate is under $7 million/month, right? Hopefully, with that new magic word RAPID in the label, sales will pick up RAPIDLY.
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Post by rockstarrick on Oct 3, 2017 3:24:44 GMT -5
ATM also uses the same outstanding shares . So you cannot add them both $ OK, so then we have 22.4 million shares, or about $45 million at today's price then ... that's it, right? And $47 million is due between May and August. Well, that doesn't sound toooo bad. I'm thinking our new cash burn rate is under $7 million/month, right? Hopefully, with that new magic word RAPID in the label, sales will pick up RAPIDLY. I think Mike actually said “50 million”
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Post by sayhey24 on Oct 3, 2017 5:21:21 GMT -5
$50M is what was said by the CFO. IMO, yesterday adds to Mike's credibility. He was confident about the label change on 9/29. He also seems confident about some up coming international deals. Assuming he is right about them and with the $50M we may be in pretty good shape to pay the bills.
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Post by sportsrancho on Oct 3, 2017 6:07:22 GMT -5
No doubt in my mind what Mike goes after he gets. He delivers:-) Afrezza has never disappointed either. Best of both worlds! The right ingredient for the biggest turnaround in Pharma history!
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Post by tw12 on Oct 3, 2017 7:04:36 GMT -5
Exactly! And it's a turnaround to a wide and intriguing range of horizons...
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Post by mytakeonit on Oct 3, 2017 13:08:21 GMT -5
And as the share price goes up ... MNKD funding $$$ goes up. $50M is over $60M now and climbing ....
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Post by dreamboatcruise on Oct 3, 2017 13:25:14 GMT -5
$50M is what was said by the CFO. IMO, yesterday adds to Mike's credibility. He was confident about the label change on 9/29. He also seems confident about some up coming international deals. Assuming he is right about them and with the $50M we may be in pretty good shape to pay the bills. Yes, he did seem to indicate we should expect some future international distribution deals. But bear in mind, we already got one deal this year... and it had no upfront money. I think a deal, even without money, would be good for investor sentiment. Perhaps there is some modest amount of upfront money, but I'm not counting on that and glad to see that it is getting to the point where we have a little wriggle room with the ATM at the current share price.
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Post by therealisaching on Oct 3, 2017 14:21:42 GMT -5
$50M is what was said by the CFO. IMO, yesterday adds to Mike's credibility. He was confident about the label change on 9/29. He also seems confident about some up coming international deals. Assuming he is right about them and with the $50M we may be in pretty good shape to pay the bills. Yes, he did seem to indicate we should expect some future international distribution deals. But bear in mind, we already got one deal this year... and it had no upfront money. I think a deal, even without money, would be good for investor sentiment. Perhaps there is some modest amount of upfront money, but I'm not counting on that and glad to see that it is getting to the point where we have a little wriggle room with the ATM at the current share price. Mike C's road map from Slide 18 at the Cantor conference has it in this order:
Near Term Milestones and Key Events
1. Growth Trajectory Continues for Afrezza (accomplishing) 2. FDA Label Change (achieved) 3. Recapitalization (freed up 8.4MM shares) 4. International Expansion Announcements (??)
Agree upfront money on a new deal would go a long way. Perhaps we get another deal, but also an update on Biomm. That deal was announced 5/31. According to this write up approval generally takes 9 months.
www.quora.com/How-does-the-drug-approval-process-work-in-Brazil
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Post by lakers on Oct 3, 2017 18:30:25 GMT -5
BoD telegraphed confidence in biz dev by raising ATM to $50M. That would improve leverage in negotiations as well. It's a pretty bullish signal. What international expansion announcements (plurals) do you think will be announced next?
Oman, Saudi Arabia were added next to UAE. Why? One stone kills 3 birds? Mexico, Canada: U.S. Is member of NAFTA, no tariff, lower shipping cost. This would make A cheaper than Sanofi's Alpidra, Novo's Faisp. The urgency is now before Trump renegotiates NAFTA. S Africa was added to India. Why? No frig needed if used within 30 days. Cipla? China. Why? 3-way joint venture between a local Chinese firm, AMPH, Mnkd?
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