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Post by myocat on Mar 12, 2018 7:16:27 GMT -5
finance.yahoo.com/news/mannkind-restructures-79-7-million-120840832.htmlMannKind Corporation (MNKD) today announced the restructuring of certain of its outstanding debt obligations, reducing outstanding principal by an aggregate of $14.5 million along with the corresponding interest expense. Cancelation of approximately $8.2 million in principal under the promissory note with the Mann Group with its purchase of 3,000,000 shares of common stock at the closing price on March 9, 2018 of $2.72 per share. These shares were issued in a private placement and there is no obligation or intent by the Company to register these shares for resale. Maturity date of the remaining principal of approximately $71.5 million under the amended and restated promissory note with the Mann Group extended 18 months to July 1, 2021, with principal and any accrued and unpaid interest permitted to be converted into common stock, at the option of the Mann Group, at a conversion price of $4.00 per share. Exchanged $5.0 million in principal due May 2018 under the Deerfield facility for 1,838,236 shares of common stock equal to the closing price on March 9, 2018 of $2.72 per share. Exchanged approximately $1.3 million in principal due May 2018 under the Deerfield facility for 441,618 shares of common stock MannKind’s Chief Financial Officer, Steven B. Binder commented, “These transactions further progress our efforts in recapitalizing and restructuring our balance sheet allowing us to focus on investing in the sustained growth of Afrezza.”
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Post by porkini on Mar 12, 2018 7:24:44 GMT -5
finance.yahoo.com/news/mannkind-restructures-79-7-million-120840832.htmlMannKind Corporation (MNKD) today announced the restructuring of certain of its outstanding debt obligations, reducing outstanding principal by an aggregate of $14.5 million along with the corresponding interest expense. Cancelation of approximately $8.2 million in principal under the promissory note with the Mann Group with its purchase of 3,000,000 shares of common stock at the closing price on March 9, 2018 of $2.72 per share. These shares were issued in a private placement and there is no obligation or intent by the Company to register these shares for resale. Maturity date of the remaining principal of approximately $71.5 million under the amended and restated promissory note with the Mann Group extended 18 months to July 1, 2021, with principal and any accrued and unpaid interest permitted to be converted into common stock, at the option of the Mann Group, at a conversion price of $4.00 per share. Exchanged $5.0 million in principal due May 2018 under the Deerfield facility for 1,838,236 shares of common stock equal to the closing price on March 9, 2018 of $2.72 per share. Exchanged approximately $1.3 million in principal due May 2018 under the Deerfield facility for 441,618 shares of common stock MannKind’s Chief Financial Officer, Steven B. Binder commented, “These transactions further progress our efforts in recapitalizing and restructuring our balance sheet allowing us to focus on investing in the sustained growth of Afrezza.” Link (MNKD) here: investors.mannkindcorp.com/news-releases/news-release-details/mannkind-restructures-797-million-debt-obligation-mann-group-and |
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Post by sla55 on Mar 12, 2018 7:29:25 GMT -5
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Post by uvula on Mar 12, 2018 7:33:09 GMT -5
Too many words. Too many words. Can someone sum it up for me? Is this another mini round of dilution? How long is our runway now? This means the Mann Foundation is still helping us, right?
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Post by boca1girl on Mar 12, 2018 7:55:48 GMT -5
Too many words. Too many words. Can someone sum it up for me? Is this another mini round of dilution? How long is our runway now? This means the Mann Foundation is still helping us, right? Positive from my perspective. Helps with cash burn but does increase shares outstanding (dilution). Runway is extended but by how much? Mann Foundation is helping to keep us in business with the conversion of deb to equity now (and in the future) and extending the debt endpoint. |
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Post by derek2 on Mar 12, 2018 7:58:51 GMT -5
Too many words. Too many words. Can someone sum it up for me? Is this another mini round of dilution? How long is our runway now? This means the Mann Foundation is still helping us, right? This is definitely help from several sources. Strengthens the balance sheet by reducing debt to Deerfield and extends out the timeline for Mann Foundation repayment. Gives them time to execute on the current plan with less distraction. |
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Post by sportsrancho on Mar 12, 2018 8:09:58 GMT -5
NICE WORK!
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Post by sf1981 on Mar 12, 2018 8:32:39 GMT -5
It's a modestly positive event. Financial impact is not enormous, but it reduces some near term debt and cash outflows, while signalling that the Mann Group continues to work with the company on friendly terms, which is something that we didn't really know until now - since Al Mann's death, there has been total silence from them regarding their stake and future intentions.
Mann Group basically does not get anything major in return for the debt extension, so that is definitely a positive friendly gesture.
The quantities involved are not big enough to warrant a large share price reaction though, I think.
A normal biotech stock would go up a few percent on the news, I guess. With MNKD, who knows.
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Post by casualinvestor on Mar 12, 2018 8:47:08 GMT -5
My cliff notes:
Deerfield get 2.28 million shares in exchange for $6.3 million of debt that was due in May.
The Mann Group get 3 million shares for $8.2 million in debt. The rest of the Mann debt ($71.5M) is extended 18 months to July 1, 2021. The Mann group has the option to fill all of that (plus interest) with shares for $4.00 until then. That's about 18M more shares, and will likely be a sweet deal for them.
Dilution for debt payment/restructuring, and better than most options I guess
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Post by lsl428 on Mar 12, 2018 8:54:04 GMT -5
My cliff notes: Deerfield get 2.28 million shares in exchange for $6.3 million of debt that was due in May. The Mann Group get 3 million shares for $8.2 million in debt. The rest of the Mann debt ($71.5M) is extended 18 months to July 1, 2021. The Mann group has the option to fill all of that (plus interest) with shares for $4.00 until then. That's about 18M more shares, and will likely be a sweet deal for them. Dilution for debt payment/restructuring, and better than most options I guess The Mann group option to buy at 4 gives them a free short of 18 million shares at anything above 4 bucks which we all assumed deerfield used to their advantage many times over. This seems to me to put a direct headwind on any trade much higher than 4 bucks for awhile unless something significantly material occurs |
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Post by hellodolly on Mar 12, 2018 9:05:39 GMT -5
My cliff notes: Deerfield get 2.28 million shares in exchange for $6.3 million of debt that was due in May. The Mann Group get 3 million shares for $8.2 million in debt. The rest of the Mann debt ($71.5M) is extended 18 months to July 1, 2021. The Mann group has the option to fill all of that (plus interest) with shares for $4.00 until then. That's about 18M more shares, and will likely be a sweet deal for them. Dilution for debt payment/restructuring, and better than most options I guess The Mann group option to buy at 4 gives them a free short of 18 million shares at anything above 4 bucks which we all assumed deerfield used to their advantage many times over. This seems to me to put a direct headwind on any trade much higher than 4 bucks for awhile unless something significantly material occurs If so, the past is likely a good indicator of the future then, it won't take DFLD long to dump them once they put the bottom in of their choosing. |
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Post by celo on Mar 12, 2018 9:11:32 GMT -5
This is my optimistic stock owner point of view, but doesn't this allow these 2 entities get in before any international deals are announced and a possibly run up on the stock price? Take the stock price now, while there has been relatively little news. 5.5 million in dilution now and 18 million in 18 months. Not bad. From the annual report:
"Let me walk you through what we've been talking about - as we talked about the recapitalization of the company. So what you'll see in a second is we started the year with over $100 million in debt back in 2016 coming into January of 2017. We were able to reduce that debt, as you'll see in the second, by $15 million and $14 million, which is $29 million so there is 2 green bars. And I apologize, it looks like something didn't [indiscernible] range, but the 2 green bars, I apologize, are $15 million and $14 million respectively. And then you see Deerfield conversion for up to 50 million [ph] in that green shaded bar in the middle there.
That's because we put a recent agreement in place with Deerfield for up to 10 million shares and what this fundamental does when you look across the bottom is we've cleared a 4-year runway for '18, '19, or '20, and '21 to focus on growing MannKind and growing AFREZZA to be the blockbuster that we know it can be.
The last bar there is $5.15 [ph] convertible note that was moved out from October of this past year, we pushed it forward 4 years to the end of 2021. So this has been our focus on the recapitalization as to continue to remove those near term speed bumps and debt over hangs that we inherited, so that we continue to move the company forward and move it in a positive direction.
You will notice here the Mann group $80 million is not included and that's because that's the very last step of the recapitalization process as we continue to work through the partners that we've been through and I just want to say thank you to Deerfield and Bruce & Company, everyone else that's continue to work [indiscernible] to this challenging year to overcome the complications that we faced."
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Post by derek2 on Mar 12, 2018 9:19:34 GMT -5
My cliff notes: Deerfield get 2.28 million shares in exchange for $6.3 million of debt that was due in May. The Mann Group get 3 million shares for $8.2 million in debt. The rest of the Mann debt ($71.5M) is extended 18 months to July 1, 2021. The Mann group has the option to fill all of that (plus interest) with shares for $4.00 until then. That's about 18M more shares, and will likely be a sweet deal for them. Dilution for debt payment/restructuring, and better than most options I guess The Mann group option to buy at 4 gives them a free short of 18 million shares at anything above 4 bucks which we all assumed deerfield used to their advantage many times over. This seems to me to put a direct headwind on any trade much higher than 4 bucks for awhile unless something significantly material occurs Agreed. $4 looks pretty good from here, though... |
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Post by Deleted on Mar 12, 2018 9:21:27 GMT -5
"Cancelation of approximately $8.2 million in principal under the promissory note with the Mann Group with its purchase of 3,000,000 shares of common stock at the closing price on March 9, 2018 of $2.72 per share. These shares were issued in a private placement and there is no obligation or intent by the Company to register these shares for resale.
Maturity date of the remaining principal of approximately $71.5 million under the amended and restated promissory note with the Mann Group extended 18 months to July 1, 2021, with principal and any accrued and unpaid interest permitted to be converted into common stock, at the option of the Mann Group, at a conversion price of $4.00 per share."
According to some knowledgeable people, the Mann Group was supposedly low on cash and dumped its MNKD shares. So much for opinions of some.
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Post by casualinvestor on Mar 12, 2018 10:24:14 GMT -5
It's impossible to tell the timing, but if the Mann Group pulled their shares from being lent out to short (no clue if they were lent or not) before Oct, then sold them during the spike up, that would have been really smart of them.
Is there any other debt due in 2018?
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