MannKind Corp. (MNKD)

[parkourstar]

Referring to the the upcoming requirement for MNKD to have 20 million in cash by the end of the quarter, Spencer Osborne observes:

"As things look, they are about 9 million dolls shy of being in compliance. It is my belief that they were already tapping the facility in Q2. Think about it this way.

Average volume on the stock is 2 million shares. Let's assign 10%. This means that the company could sell 200,000 shares a day with the ATM. That would raise about $300,000 a day. It would take 30 trading days to get $9,000,000 dollars with dilution of 6 million shares. Tapping the facility daily would really saddle the stock price, so it would likely take 2 or 3 times longer to raise that money.

Can it be done? Yes. Is it ideal? No."

Wouldn't surprise me the ATM was the source of the 300,000 shares that gutted the stock price at about 9:50 am.