MannKind Corporation (NASDAQ:MNKD) announced the pricing of a registered direct public offering of up to 48,543,692 shares of common stock and warrants to purchase up to an aggregate of 48,543,692 shares of common stock to select institutional investors. Each share of common stock is being sold together with a warrant to purchase 0.75 of a share of common stock (A Warrants) and a warrant to purchase 0.25 of a share of common stock (B Warrants) for a combined purchase price of $1.03. The A Warrants will be exercisable at a price of $1.50 per share beginning upon issuance and will expire two years thereafter. The B Warrants will be exercisable at a price of $1.50 per share beginning in May 2017 and expire 18 months thereafter. The shares of common stock and the warrants will be immediately separable and will be issued separately. The offering is expected to close on or about May 12, 2016, subject to customary closing conditions.
Rodman & Renshaw, a unit of H.C. Wainwright & Co., LLC, acted as exclusive placement agent for the offering.
The total gross proceeds from the offering are expected to be approximately $50.0 million. After deducting the placement agent’s fees, the net proceeds to MannKind are expected to be approximately $47.5 million. MannKind intends to use the net proceeds from the offering for working capital and general corporate purposes. (Original Source)
Shares of MannKind are falling nearly 18% to $1.08 in pre-market trading. MNKD has a 1-year high of $7.32 and a 1-year low of $0.64. The stock’s 50-day moving average is $1.61 and its 200-day moving average is $1.62.
On the ratings front, MannKind has been the subject of a number of recent research reports. In a report issued on April 28, JMP analyst Jason Butler reiterated a Hold rating on MNKD. Separately, on March 30, Goldman Sachs’ Jay Olson maintained a Sell rating on the stock and has a price target of $0.25.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jason Butler and Jay Olson have a total average return of 37.7% and 40.8% respectively. Butler has a success rate of 57.1% and is ranked #102 out of 3828 analysts, while Olson has a success rate of 100.0% and is ranked #815.
Overall, 3 research analysts have rated the stock with a Sell rating, one research analyst has assigned a Hold rating and . When considering if perhaps the stock is under or overvalued, the average price target is $0.25 which is -81.1% under where the stock opened today.