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MannKind's (MNKD -13%) offering of 31.25M units priced at a 2.8% discount to yesterday's closing...

MannKind's (MNKD -13%) offering of 31.25M units priced at a 2.8% discount to yesterday's closing price sends shares plunging well below their $2.40 offering price and approaching a 52-week low. Earlier this week, the drug developer disclosed plans for the arrangement, which sees some of its debt cancelled in exchange for the shares.
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  • capgain
    , contributor
    Comments (48) | Send Message
     
    Sometimes I wonder if the "professionals" trading this stock are still taking long and liquid lunches! They run like cockroaches without thinking through the many consequences of this transaction that Dr. Mann has structured. What is he doing? He's basically exchanging a loan receivable for additional stock. Why? Because he thinks the stock is going to be worth less than the cash equivalent? Or....is he saying that he has enough confidence in the future of Afrezza/Mannkind/market potential that he is willing to exchange part of his creditor position for additional stock?

     

    He might be a difficult personality to deal with, but he's no dummy!
    As an investor, not a trader, I see this transaction as a net positive for the company. A good chunk of the loan payable is lightened and the offsetting cost to MNKD is a very de minimus dilution. If and when Afrezza satisfies the FDA and comes to market, the confidence that Al Mann is showing will pay him off handsomely......and it won't hurt us!!!!!
    3 Feb 2012, 03:52 PM Reply Like
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