MannKind Corporation (NASDAQ:MNKD) announced that it has delivered a funding request notification to the Mann Group LLC pursuant to the terms of the Mann Group Loan Arrangemen to draw the remaining $30.1 million of availability thereunder. Upon funding, MannKind will concurrently use $10.6 million of the proceeds to capitalize all accrued but unpaid interest under the Loan Arrangement. Under a subordination agreement with Deerfield, the Mann Group previously agreed with Deerfield not to demand or accept any payment under the Loan Arrangement until MannKind’s payment obligations to Deerfield have been satisfied in full, except for payments (such as interest payable in-kind) that are permitted under the subordination agreement. After the request is funded, MannKind will (i) receive $19.4 million of cash, (ii) have drawn the full amount available under the Loan Arrangement, and (iii) have paid all accrued interest outstanding thereunder as of June 30, 2017. The outstanding balance under the Loan Arrangement after this transaction will be $79.7 million, which is due on January 5, 2020.
“This advance will meaningfully increase our cash on hand as we continue to explore potential opportunities to enhance our capital structure. We truly appreciate our working relationship with the Mann Group and their continued support of MannKind,” said Michael Castagna, Chief Executive Officer of MannKind Corporation. “In addition, we have engaged Greenhill & Co., Inc. as a financial and strategic advisor, a firm that we believe will provide independent advice as I transition into my new role.”
Shares of MannKind are currently trading at $1.53, down $0.03 or -1.92%. MNKD has a 1-year high of $6.05 and a 1-year low of $0.67. The stock’s 50-day moving average is $1.42 and its 200-day moving average is $1.11.
On the ratings front, MannKind has been the subject of a number of recent research reports. In a report issued on May 11, J.P. Morgan analyst Cory Kasimov reiterated a Sell rating on MNKD. Separately, on the same day, Piper Jaffray’s Joshua Schimmer reiterated a Sell rating on the stock and has a price target of $0.54.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Cory Kasimov and Joshua Schimmer have a yearly average return of 0.0% and a loss of -4.9% respectively. Kasimov has a success rate of 39% and is ranked #3264 out of 4588 analysts, while Schimmer has a success rate of 41% and is ranked #4424.
MannKind Corp. is a biopharmaceutical company. It focuses on the discovery, development and commercialization of therapeutic products for diseases, such as diabetes and cancer.