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Post by boca1girl on Mar 1, 2018 10:36:14 GMT -5
Slide 10 shows all of the use of shares for the past year. The only use of the ATM appears to be a very small sale in Q4... 0.2M shares raising a net of $0.5M. That would imply a share price of something just under $2.60 per share. Does anyone have a clue why they exercised the ATM for such a small amount in 4Q? It doesn’t seem like there was a critical need to raise $500,000 when then ended the year with $40+M.
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Post by madog365 on Mar 1, 2018 10:46:35 GMT -5
Maddog, Any thoughts on WHY they moved the ATM away from whoever it was with? Anyone else care to chime in? More favorable terms? I believe I read somewhere that moving it to a larger, more reputable firm was considered a positive sign by the market. Yes definately far more reputable but to add on to that Cantor Fitzgerald also offers advisory services on M/A / strategic partnerships as well as being a premier player in debt/equity financing and placements. From this ATM deal, Cantor stands to make 3% commision or $1.5M - but that's only if they sell the full amount of $50M worth of shares (which is unlikely given that Mannkind has barely tapped the ATM in the past) To me it signifies that Cantor is doing additional work for MNKD(on top of the ATM) because ultimately the $1.5m is a small drop in the bucket for a shop of their size. Obviously that would be for additional recapitalization efforts outside of the ATM but i don't know if it will be one of the services i mentioned above or a combination of a few of them. Edit: I'll add one other potential benefit to the list, analyst coverage. As evidenced by the earnings call there are almost no analysts covering mannkind today so if we can get someone at Cantor covering MNKD, that alone would be a big win. I would expect them to cover companies they are doing business with.
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Post by digger on Mar 1, 2018 11:09:17 GMT -5
I'm disappointed that MNKD has to resort to an ATM to raise money. To me an ATM is the source of last resort. And why announce it the day right after the CC? It's implying they think they'll need the money sooner than later. And why didn't they use their previous ATM to sell shares during the spike to $6? At the time I believe still had at least around 10 million outstanding shares available. AT the time volume was very heavy; moving 10 million shares would have been easy. they did. I think they said they got $4.80 average? $4.30? I am not going to dig it up. 10 million shares at $6. it is in one of the documents sla posted today. The 10-K says -- "Cash provided from financing activities was $73.6 million for the year ended December 31, 2017 primarily related to $57.7 million in net proceeds from the registered direct offering of common stock and $19.4 million received from borrowings on the note payable to principal stockholder" but no mention of ATM stock sold. On the consolidated statement of the balance sheet, it says they sold 173,000 shares. On the consolidated statement of cash flows says -- "Proceeds from issuance of common stock pursuant to at-the-market issuance $564,000." That's $3.26 a share. Why couldn't they have sold more at a higher price?
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Post by peppy on Mar 1, 2018 11:23:32 GMT -5
they did. I think they said they got $4.80 average? $4.30? I am not going to dig it up. 10 million shares at $6. it is in one of the documents sla posted today. The 10-K says -- "Cash provided from financing activities was $73.6 million for the year ended December 31, 2017 primarily related to $57.7 million in net proceeds from the registered direct offering of common stock and $19.4 million received from borrowings on the note payable to principal stockholder" but no mention of ATM stock sold. On the consolidated statement of the balance sheet, it says they sold 173,000 shares. On the consolidated statement of cash flows says -- "Proceeds from issuance of common stock pursuant to at-the-market issuance $564,000." That's $3.26 a share. Why couldn't they have sold more at a higher price? you are correct. I am WRONG. totally wrong on my part.
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