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Post by straightly on Oct 3, 2017 1:19:13 GMT -5
I know I am slow, thick, and ... but
Somebody guessed that we need another $50m before cash flow positive. Add another $50m foe debt payment later next year, we need $100M.
Does that mean, if we can lease back our facility, which should net us more than $50M, plus ATM, we has a feasible path ALREADY?
If that were true, and of course ATM is dilution, but diluting at market price if fair to our current share holders, and I will be very happy.
This sounded too good to be true, so please point out where did I miss? How much cash do you think we need?
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Post by babaoriley on Oct 3, 2017 1:39:39 GMT -5
I cannot imagine that we could net $50 million for our building. Perhaps someone with some knowledge of the real estate market in the Danbury area can cast some light on that.
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Post by straightly on Oct 3, 2017 1:44:48 GMT -5
I cannot imagine that we could net $50 million for our building. Perhaps someone with some knowledge of the real estate market in the Danbury area can cast some light on that. I do remember somebody said the facilities are worth north of $100M. If that were true, we may not even need to do a lease back: we can do a loan using it as collateral. |
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Post by mytakeonit on Oct 3, 2017 3:07:37 GMT -5
Oh sorry ... I didn't mean to interrupt a short thread. But, If you're really concerned ... we are doing fine.
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Post by rockstarrick on Oct 3, 2017 3:21:00 GMT -5
I cannot imagine that we could net $50 million for our building. Perhaps someone with some knowledge of the real estate market in the Danbury area can cast some light on that. Here’s a link that talks about the plant. www.pharmaceutical-technology.com/projects/mannkinds-afrezza-manufacturing-facility/The Afrezza manufacturing facility required an investment of $163m. It was dedicated in September 2008. In January 2010, the plant won two Facility of the Year Awards (FOYA), one for Process Innovation and another for Equipment Innovation. FOYA is sponsored by the International Society for Pharmaceutical Engineering (ISPE), INTERPHEX and Pharmaceutical Processing Magazine. It is given each year to honour and recognise the best of pharmaceutical manufacturing facilities in seven different categories. It looks like Al spent 163 million according to this article. |
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Post by mytakeonit on Oct 3, 2017 4:43:35 GMT -5
Yep, just as I remembered ...
"The project was part renovation and part new construction. Approximately 20% of the facility is apportioned to facilitate future expansion, which can be undertaken to increase production of insulin therapy or start production of new Technosphere-based products."
They said that they could fit 2 more lines in that space.
Thanks rockstar for bringing up the link.
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Post by jonny80s on Oct 3, 2017 5:20:02 GMT -5
I believe 3 are installed/commissioned now:
May 2015: Mannkind's Danbury plant is currently operating one manufacturing line that can produce up to 120 million cartridges of Afrezza each year. Later this quarter production will be expanded to three manufacturing lines, tripling the capacity to about 360 million cartridges. The plant was designed to accommodate up to 12 manufacturing lines.
VALENCIA, Calif., July 31, 2015 (GLOBE NEWSWIRE) -- MannKind Corporation (Nasdaq:MNKD) today announced that it has completed the validation of two additional filling lines for the manufacture of Afrezza® (insulin human) inhalation powder. Material produced during the validation runs, including the recently approved 12 unit cartridges, will be supplied to Sanofi to support the launch of the new dosage strength, which is expected later this quarter.
"With the completion of the validation effort, which began last quarter, we can support a demand of more than 300 million cartridges per year," stated Hakan Edstrom, President and CEO of MannKind Corporation. "The addition of the 12 unit cartridge will provide patients with another option to receive their prescribed dose."
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Post by otherottawaguy on Oct 3, 2017 7:19:51 GMT -5
3 lines are currently avail. Room for 8 lines in current building. Room to expand building footprint (just look at the size of the parking lot in the back). goo.gl/maps/axchKEKZHh42OOG |
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Post by agedhippie on Oct 3, 2017 7:26:05 GMT -5
The Danbury building secures the Deerfield debt. You could sell it but Deerfield gets first bite of the proceedings, Mannkind gets anything that is left over.
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Post by matt on Oct 3, 2017 9:29:47 GMT -5
It is really hard to put a number on Danbury because most of the money spent was to create space to produce Afrezza. In a distress sale scenario, which is how most real estate lenders will look at structuring a sale-leaseback arrangement, the plant is only worth what the land and the shell of the building is worth minus the cost to remove any Mannkind specific improvements(that is required to make the building interesting for a new tenant or owner). The best comparable is not the historical cost Mannkind put into it or what it would cost to replace, but what other buildings of similar size and age are selling for in Danbury. The figures after the 2015 end-of-year write down is probably the most reasonable estimate.
It is just like a mortgage lender; nobody cares how much you paid for the house or the fact that you just invested $100K to improve the family room and the kitchen. If you have a four bedroom house on a street full of four bedroom houses that are selling for around $500K, then the bank will write a mortgage based on a value of $500K.
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Post by straightly on Oct 3, 2017 16:36:53 GMT -5
The Danbury building secures the Deerfield debt. You could sell it but Deerfield gets first bite of the proceedings, Mannkind gets anything that is left over. If that is the case, then our cash situation might be better than I thought. I do NOT see any reason why Deerfield would NOT rollover the loans with the Collateral intact (and even increased in value as MNKD makes more sales) than forcing its payments. That removes the payment requirements for next year and leave the $50M needed to grow our sale to cash flow positive. And guess what: We have a $50M ATM. This is why I ask my questions: How much cash do you think we need? It seemed to be true but I cannot believe it: Has our cash issue really been addressed (with the ATM dilution)? I want to know if I missed anything. ATM is great because Mike can delay withdrawing from it to the very last minute, especially if our stock is on a upward trend. |
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Post by falconquest on Oct 3, 2017 16:51:39 GMT -5
The Danbury building secures the Deerfield debt. You could sell it but Deerfield gets first bite of the proceedings, Mannkind gets anything that is left over. If that is the case, then our cash situation might be better than I thought. I do NOT see any reason why Deerfield would NOT rollover the loans with the Collateral intact (and even increased in value as MNKD makes more sales) than forcing its payments. That removes the payment requirements for next year and leave the $50M needed to grow our sale to cash flow positive. And guess what: We have a $50M ATM. This is why I ask my questions: How much cash do you think we need? It seemed to be true but I cannot believe it: Has our cash issue really been addressed (with the ATM dilution)? I want to know if I missed anything. ATM is great because Mike can delay withdrawing from it to the very last minute, especially if our stock is on a upward trend. It is on an upward trend..........for now. |
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Post by dreamboatcruise on Oct 3, 2017 17:03:58 GMT -5
The Danbury building secures the Deerfield debt. You could sell it but Deerfield gets first bite of the proceedings, Mannkind gets anything that is left over. If that is the case, then our cash situation might be better than I thought. I do NOT see any reason why Deerfield would NOT rollover the loans with the Collateral intact (and even increased in value as MNKD makes more sales) than forcing its payments. That removes the payment requirements for next year and leave the $50M needed to grow our sale to cash flow positive. And guess what: We have a $50M ATM. This is why I ask my questions: How much cash do you think we need? It seemed to be true but I cannot believe it: Has our cash issue really been addressed (with the ATM dilution)? I want to know if I missed anything. ATM is great because Mike can delay withdrawing from it to the very last minute, especially if our stock is on a upward trend. Not at all past tense. It is looking hopeful, given the rising stock price, that at least short term cash needs could be addressed by selling into market through ATM... but the success of that is not guaranteed. There have to be enough investors with an appetite for $50M in new shares. Declaring that as a limit by stroke of pen does not mean it will happen that way. |
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Post by straightly on Oct 3, 2017 17:13:07 GMT -5
If that is the case, then our cash situation might be better than I thought. I do NOT see any reason why Deerfield would NOT rollover the loans with the Collateral intact (and even increased in value as MNKD makes more sales) than forcing its payments. That removes the payment requirements for next year and leave the $50M needed to grow our sale to cash flow positive. And guess what: We have a $50M ATM. This is why I ask my questions: How much cash do you think we need? It seemed to be true but I cannot believe it: Has our cash issue really been addressed (with the ATM dilution)? I want to know if I missed anything. ATM is great because Mike can delay withdrawing from it to the very last minute, especially if our stock is on a upward trend. Not at all past tense. It is looking hopeful, given the rising stock price, that at least short term cash needs could be addressed by selling into market through ATM... but the success of that is not guaranteed. There have to be enough investors with an appetite for $50M in new shares. Declaring that as a limit by stroke of pen does not mean it will happen that way. I do claim my ignorance. Only thing I remember was reading on this board that our ATM was an instrument that we have the rights to sell some entity (I forget which) common stocks at the market price. So I assumed that it works like PUT options that we do not have to sell, but we have the RIGHTS to sell anytime we want. You saints with detail knowledge on this board, please enlighten us. |
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