MannKind Corp. (MNKD)

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Matt_PK
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At this point I think time has run out for a right offering before the Deerfield payment is due. The company does not have enough authorized shares to do such an offering and so would need shareholder approval to increase the number of common shares. The requires a special meeting and SEC rules require the proxy to be mailed out no later than 21 days prior to the vote. As we are within the four week window, and there has not even been a preliminary proxy submitted to the SEC for comments, let alone a definitive one, I don't think enough time exists to call a meeting, mail the proxy, have new shares approved, and conduct the rights offering. That was still a possible strategy on May 1st, but not on June 19th.
I think at this point the company either does a quick pipe with the remaining authorized shares, or they use the remaining shares to settle the Deerfield payment. Those are pretty much equivalent transactions except that Deerfield may save them 7% on the placement fee, and, while it will be some painful dilution, there is no other way to remain compliant with the September 30 covenants unless the money fairy comes to pay a visit