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Post by straightly on Mar 12, 2018 12:43:26 GMT -5
Way 1: Existing bond holders, already on board and hooked to this bad situation, have to compromise and therefore have to take the best deal they could get and $2.72 is the best they can get. So, for new investors and investments, they could expect to pay lower price as they haven't been "hooked" yet.
Way 2: Existing bond holders, knowing more of MNKD and Afrezza than us and possibly future investors, wanted the stocks based on their assessment. They obviously have already done everything they can to beat the price down so they can get in at a price as low as it is legal. The lowest they can was $2.72. So, for new investors and investments, $2.72 is the bottom.
I will take 2. What do you think?
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Post by celo on Mar 12, 2018 13:10:50 GMT -5
I would want to agree, but the stock is currently falling as if someone is exiting their position to get what ever price they can for their shares. Instead of holding them and watching the share price run up. Obviously, I have no idea who is selling shares, but this seems to be a major push downward on what should be a semi-good news day.
Deerfield has about 2.5 million shares to unload. They could possibly be doing this, currently.
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Post by bill on Mar 12, 2018 13:30:11 GMT -5
I would want to agree, but the stock is currently falling as if someone is exiting their position to get what ever price they can for their shares. Instead of holding them and watching the share price run up. Obviously, I have no idea who is selling shares, but this seems to be a major push downward on what should be a semi-good news day. Deerfield has about 2.5 million shares to unload. They could possibly be doing this, currently. I suspect the dynamic is that if good news was nearly here, MNKD would have waited until after the good news to restructure the debt when the share price would have been higher. Doing it now may mean that whatever short term deals they were looking at are no longer short term. |
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Post by traderdennis on Mar 12, 2018 14:34:59 GMT -5
Straightly,
Sorry to burst your bubble, Deerfield has historically taken the stock in lieu of payment and then sold it on the open market. Their last 13g shows that they sold their 5% poisition they had back in May.
As for Al Mann group, their mission is to help MNKD where possible, but they received a really sweet deal getting an option at 4.00 in the future for waiting. They either will cash in big, or loose what is left.
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Post by celo on Mar 12, 2018 14:41:56 GMT -5
2.88 million shares traded so far today. Deerfield probably has some more trading to do, as the total shares traded is only a fraction of what Deerfield has sold.
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Post by babaoriley on Mar 12, 2018 15:44:41 GMT -5
I would want to agree, but the stock is currently falling as if someone is exiting their position to get what ever price they can for their shares. Instead of holding them and watching the share price run up. Obviously, I have no idea who is selling shares, but this seems to be a major push downward on what should be a semi-good news day. Deerfield has about 2.5 million shares to unload. They could possibly be doing this, currently. I suspect the dynamic is that if good news was nearly here, MNKD would have waited until after the good news to restructure the debt when the share price would have been higher. Doing it now may mean that whatever short term deals they were looking at are no longer short term. Bill, although what you say makes sense, it does not fly in the world of finance of small, struggling companies. I have seen good news released not too long after such a restructure or new financing only to ask the same question. It's all about one hand washing the other. |
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Post by golfeveryday on Mar 12, 2018 19:30:33 GMT -5
I would want to agree, but the stock is currently falling as if someone is exiting their position to get what ever price they can for their shares. Instead of holding them and watching the share price run up. Obviously, I have no idea who is selling shares, but this seems to be a major push downward on what should be a semi-good news day. Deerfield has about 2.5 million shares to unload. They could possibly be doing this, currently. I suspect the dynamic is that if good news was nearly here, MNKD would have waited until after the good news to restructure the debt when the share price would have been higher. Doing it now may mean that whatever short term deals they were looking at are no longer short term. or they have set up mann group to receive a $4 conversion on their debt via shares and will push the share price higher soon. They either get paid in shares that will appreciate if above $4 or they are owed cash. |
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Post by robbmo on Mar 12, 2018 20:03:58 GMT -5
Way 1: Existing bond holders, already on board and hooked to this bad situation, have to compromise and therefore have to take the best deal they could get and $2.72 is the best they can get. So, for new investors and investments, they could expect to pay lower price as they haven't been "hooked" yet. Way 2: Existing bond holders, knowing more of MNKD and Afrezza than us and possibly future investors, wanted the stocks based on their assessment. They obviously have already done everything they can to beat the price down so they can get in at a price as low as it is legal. The lowest they can was $2.72. So, for new investors and investments, $2.72 is the bottom. I will take 2. What do you think? I agree with Way 2 for one reason. As far as I can tell, the stock conversion was not at a discount. Unless they already shorted in anticipation or intend to hold the stock, it would not make sense for Deerfield to take the shares without a discount. If their intent was to take the shares and sell them on the open market, then they would want a discount as the share price would naturally become depressed by the sale and they would lose money. |
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Post by sportsrancho on Mar 12, 2018 21:16:17 GMT -5
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 babaoriley on Mar 12, 2018 21:20:54 GMT -5
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.” Sports, are you sure Mr. Binder didn't add, "and to make America great again" at the end of that line?  |
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Post by straightly on Mar 13, 2018 0:15:59 GMT -5
Way 1: Existing bond holders, already on board and hooked to this bad situation, have to compromise and therefore have to take the best deal they could get and $2.72 is the best they can get. So, for new investors and investments, they could expect to pay lower price as they haven't been "hooked" yet. Way 2: Existing bond holders, knowing more of MNKD and Afrezza than us and possibly future investors, wanted the stocks based on their assessment. They obviously have already done everything they can to beat the price down so they can get in at a price as low as it is legal. The lowest they can was $2.72. So, for new investors and investments, $2.72 is the bottom. I will take 2. What do you think? I agree with Way 2 for one reason. As far as I can tell, the stock conversion was not at a discount. Unless they already shorted in anticipation or intend to hold the stock, it would not make sense for Deerfield to take the shares without a discount. If their intent was to take the shares and sell them on the open market, then they would want a discount as the share price would naturally become depressed by the sale and they would lose money. If speculative comments from some pb members were to be believed, "they already shorted in anticipation." |
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Post by robbmo on Mar 13, 2018 2:26:51 GMT -5
I agree with Way 2 for one reason. As far as I can tell, the stock conversion was not at a discount. Unless they already shorted in anticipation or intend to hold the stock, it would not make sense for Deerfield to take the shares without a discount. If their intent was to take the shares and sell them on the open market, then they would want a discount as the share price would naturally become depressed by the sale and they would lose money. If speculative comments from some pb members were to be believed, "they already shorted in anticipation." That is really pushing the limits of contextual license.. |
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Post by traderdennis on Mar 13, 2018 10:58:51 GMT -5
If speculative comments from some pb members were to be believed, "they already shorted in anticipation." That is really pushing the limits of contextual license.. It is there MO for Deerfield to short prior to a payment. Also on Friday I could only get a 60% allocation for my daytrade short |
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Post by matt on Mar 13, 2018 14:37:05 GMT -5
Straightly, Sorry to burst your bubble, Deerfield has historically taken the stock in lieu of payment and then sold it on the open market. Their last 13g shows that they sold their 5% poisition they had back in May. As for Al Mann group, their mission is to help MNKD where possible, but they received a really sweet deal getting an option at 4.00 in the future for waiting. They either will cash in big, or loose what is left. I have to agree with the comment above. Deerfield is structured as a bond fund that first and foremost is there to protect the capital of their investors. If they wanted to be fully exposed to biotech risk they would be structured as a biotech fund, but instead they prefer to make loans that have some form of equity sweetener on the back end. Historically they have not held onto any shares they received in exchange for debt repayments, and it should not shock anybody if they were short before making this deal, either by shorting MNKD in the market or being synthetically short via put options. As for the Mann Group, nobody knows what their motivations are at this point. With the passing of Mr. Mann, some of the investment is controlled by trustees who have legal obligations to the ultimate beneficiaries of the trusts, and they must follow the intension of the grantor as specified in the trust document. Those are private instruments so what those specific instructions are is pure guesswork. While Mr. Mann was the ultimate friendly shareholder, he might also have wanted to endow education trusts, donate to museums, provide for his grandchildren, and fund other worthwhile causes after his death. The trust document should have laid out those priorities and the trust has to be managed in accordance with those wishes as filed. If the trust wants or needs more cash to fulfill its mandates, this transaction gives them that opportunity, but it is far from certain that they do. Nobody will know what is happening until the ownership tables are updated in the DEF14A and the Mann Group holdings are compared with the previous disclosure. |
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Post by buyitonsale on Mar 13, 2018 16:24:36 GMT -5
"As for the Mann Group, nobody knows what their motivations are at this point"
Actions speak loader than words.
Could the terms to postpone and restructure their loan have been any better? I think not...
We go on and stock is going higher.
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