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Post by oldfishtowner on Oct 4, 2017 21:40:22 GMT -5
If you are a long you would want to sell preferred shares non convertible so there is no dilution. May be you need to re evaluate Selling preferred shares comes at a price. The dividend rate would probably be much higher than debt, and/or as I believe Matt mentioned previously, the investor in the preferred shares may demand preferences. These preferences could be worse for shareholders than the minimal dilution from selling 10 million or even 22 million common shares. And there is no way I see a sophisticated investor buying the preferred shares without a convertible feature. Sorry, I meant to say privileges and not preferences. As straightly and I are saying, preferred shares can do more harm than some dilution. First, preferred shares get preference on dividends. Essentially the preferred holders are charging interest without the rights of debt holders, so they will ask for a higher return. The dividends are likely cumulative. This will not only affect earnings attributable to the common shares but also likely delay the possibility of dividends being paid to common share holders. Furthermore, if the investors in the preferred shares demand privileges regarding the proceeds resulting from any bankruptcy or buyout, common share holders could be left with nothing in the former instance and significantly less than they would otherwise be entitled to in the latter instance. IMO selling preferred shares is an option of last resort. |
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Post by slugworth008 on Oct 4, 2017 23:35:49 GMT -5
Didn't MNKD announce in the last quarterly CC that they were going to delist from TASE? Is that still happening? Is there a timeframe? THat's what I thought as well - That they were delisting from the TASE... |
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Post by hellodolly on Oct 5, 2017 7:03:40 GMT -5
I was under the impression that the delisting was also part of controlling costs? The paperwork, filings, list costs, etc are not that important to Mike. Mike mentioned this on the last CC, when they announced the intention to delist. Still part of the overall strategic plan Mike has with his team. It is pretty clear that he used the SWOT matrix and is following the plan. I can see paper charts taped with blue painters tape scribbled on with Sharpie markers all over his office or their conference room. Sometimes, you just have to hunker down and make chit happen!
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Post by alethea on Oct 5, 2017 12:26:44 GMT -5
Even if TASE insists to keep MNKD, Mannkind will pull out to free the preferred shares that could help in recapitalization I don’t understand your point We all want MNKD to pull out of TAse IMO it is no longer necessary for MNKD to use the preferred shares. Nor is it desirable for the company to do so IMO. The stock price is at a level where the common shares now available are sufficient for raising the needed cash. Even more true today! For less than 10% dilution (less than 10M shares) MNKD can already raise the maximum of $50 million allowed via the ATM facility.  |
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