$50M Private Placement Priced at $3.89, Below Market, to Fund CVR Payment
MNKD sits 84% above its 52-week low of $2.23.
Summary
MannKind is raising $50 million in a private placement priced at $3.89 per share, a 5% discount to the current $4.1 market price. The deal includes 10.4 million shares and pre-funded warrants for 2.4 million shares, led by Frazier Life Sciences. Proceeds are earmarked for general corporate purposes, including the $45 million contingent value rights payment triggered by the recent FDA approval of Furoscix ReadyFlow. This follows the FDA approval announced earlier today, which unlocked the CVR obligation. The discount and dilution are modest but the need to fund the CVR payment so quickly after the approval raises questions about cash reserves. The financing is expected to close today.
At the time of this announcement, MNKD was trading at $4.10 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $1.2B. The 52-week trading range was $2.23 to $6.51. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: GlobeNewswire.