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Post by dreamboatcruise on Feb 16, 2018 18:25:22 GMT -5
Is the consensus that the $25M end of quarter covenant with Deerfield is still in effect and that it is unlikely it will be met without raising additional cash before end of Q1? Or has anyone run the numbers and thinks we'll eek by meeting the covenant?
Might another PIPE be coming before earnings are released? If guidance is missed it seems after earnings could be a rough time for a PIPE.
Would Deerfield relax the covenant... what pound of flesh would they extract?
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Post by sportsrancho on Feb 16, 2018 18:31:52 GMT -5
Is the consensus that the $25M end of quarter covenant with Deerfield is still in effect and that it is unlikely it will be met without raising additional cash before end of Q1? Or has anyone run the numbers and thinks we'll eek by meeting the covenant? Might another PIPE be coming before earnings are released? If guidance is missed it seems after earnings could be a rough time for a PIPE. Would Deerfield relax the covenant... what pound of flesh would they extract? I’m going to guess that they relax it, and if Mike knows were going to beat earnings then after earnings would be a better idea. Our May calls are good if we have a pump and dump either way... |
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Post by matt on Feb 16, 2018 18:53:46 GMT -5
Bond firms like Deerfield don't EVER relax covenants without cost. As noted elsewhere, there is a NASDAQ marketplace rule that prevents a company from issuing more than 20% of its outstanding shares at a discount in any six month period without prior shareholder approval. However, a 1% discount and a 20% discount are treated the same; both are an issuance at a discount. If Deerfield can negotiate a percentage discount and a number of shares that keeps MNKD in compliance with NASDAQ listing, that is a win for all.
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Post by peppy on Feb 16, 2018 18:59:32 GMT -5
Is the consensus that the $25M end of quarter covenant with Deerfield is still in effect and that it is unlikely it will be met without raising additional cash before end of Q1? Or has anyone run the numbers and thinks we'll eek by meeting the covenant? Might another PIPE be coming before earnings are released? If guidance is missed it seems after earnings could be a rough time for a PIPE. Would Deerfield relax the covenant... what pound of flesh would they extract? can we wait for the conference call? you have been pushing this discussion and conclusion. let's listen first. |
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Post by golfeveryday on Feb 16, 2018 19:08:18 GMT -5
Is the consensus that the $25M end of quarter covenant with Deerfield is still in effect and that it is unlikely it will be met without raising additional cash before end of Q1? Or has anyone run the numbers and thinks we'll eek by meeting the covenant? Might another PIPE be coming before earnings are released? If guidance is missed it seems after earnings could be a rough time for a PIPE. Would Deerfield relax the covenant... what pound of flesh would they extract? beat earnings and they could very easily announce a partner at literally anytime, domestic/international. Good luck to your short position. |
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Post by dreamboatcruise on Feb 16, 2018 19:11:25 GMT -5
Bond firms like Deerfield don't EVER relax covenants without cost. As noted elsewhere, there is a NASDAQ marketplace rule that prevents a company from issuing more than 20% of its outstanding shares at a discount in any six month period without prior shareholder approval. However, a 1% discount and a 20% discount are treated the same; both are an issuance at a discount. If Deerfield can negotiate a percentage discount and a number of shares that keeps MNKD in compliance with NASDAQ listing, that is a win for all. What form might you envision that taking... perhaps MNKD paying down some future debt with shares and getting a temporary reduction in the $25M end of quarter covenant? |
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Post by falconquest on Feb 16, 2018 20:25:56 GMT -5
Is the consensus that the $25M end of quarter covenant with Deerfield is still in effect and that it is unlikely it will be met without raising additional cash before end of Q1? Or has anyone run the numbers and thinks we'll eek by meeting the covenant? Might another PIPE be coming before earnings are released? If guidance is missed it seems after earnings could be a rough time for a PIPE. Would Deerfield relax the covenant... what pound of flesh would they extract? beat earnings and they could very easily announce a partner at literally anytime, domestic/international. Good luck to your short position. Stop being so practical DBC, this bein' a holy place and all. We can't have none of that behavior. (I had written a more.....creative diatribe but decided to tone it down a bit.................but you get my point. Okay, carry on) |
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Post by traderdennis on Feb 17, 2018 2:13:30 GMT -5
Is the consensus that the $25M end of quarter covenant with Deerfield is still in effect and that it is unlikely it will be met without raising additional cash before end of Q1? Or has anyone run the numbers and thinks we'll eek by meeting the covenant? Might another PIPE be coming before earnings are released? If guidance is missed it seems after earnings could be a rough time for a PIPE. Would Deerfield relax the covenant... what pound of flesh would they extract? [blooking at Spencer’s cash projections. Looking like we went dark during the Valentine’s Day holiday on tv. I think mnkd will squeak by with just over 25 mm in cash. It is also assuming there are enough shares available available and amphastar will take payment in shares instead of cash. They can kick the dilution can long enough to be six months past October’s lump ajd dump |
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Post by sportsrancho on Feb 17, 2018 7:34:05 GMT -5
It SEEMS like we went dark on TV starting the Christmas holidays...?
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Post by matt on Feb 19, 2018 8:35:03 GMT -5
Bond firms like Deerfield don't EVER relax covenants without cost. As noted elsewhere, there is a NASDAQ marketplace rule that prevents a company from issuing more than 20% of its outstanding shares at a discount in any six month period without prior shareholder approval. However, a 1% discount and a 20% discount are treated the same; both are an issuance at a discount. If Deerfield can negotiate a percentage discount and a number of shares that keeps MNKD in compliance with NASDAQ listing, that is a win for all. What form might you envision that taking... perhaps MNKD paying down some future debt with shares and getting a temporary reduction in the $25M end of quarter covenant? All I meant is that if Deerfield needs $1 million in concessions to ignore the covenant, they could either take 1 million shares at a $1 discount or 500,000 shares at a $2 discount; the math works out the same. The problem with deeper discounts is that the market tends to ignore the substance of the transaction and looks to the PPS involved, and then lowers the price for ALL shares to that level. The NASDAQ rule is the opposite; it looks at shares issued versus shares already outstanding notwithstanding the PPS. Note too that an ATM facility is, by definition, shares issued "at the market" while the NASDAQ 20% rule only limits shares issued at a discount to the market. An ATM facility assumes there is enough retail demand and churn to place new shares, but it is an alternative. At some point you have to wonder whether biting the bullet and doing a major secondary offering (which is also deemed to be "at the market") is less painful than the incremental death by a thousand cuts strategy the company is pursuing. Both are painful, but sometimes it is better to have all the pain at once. |
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Post by dreamboatcruise on Feb 19, 2018 11:56:20 GMT -5
Is the consensus that the $25M end of quarter covenant with Deerfield is still in effect and that it is unlikely it will be met without raising additional cash before end of Q1? Or has anyone run the numbers and thinks we'll eek by meeting the covenant? Might another PIPE be coming before earnings are released? If guidance is missed it seems after earnings could be a rough time for a PIPE. Would Deerfield relax the covenant... what pound of flesh would they extract? beat earnings and they could very easily announce a partner at literally anytime, domestic/international. Good luck to your short position. Ah, yes, the imaginary partner they've been hiding for literally years. |
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