Deal will result in investor cancelling August 2010 promissory note
By Devika Patel
Knoxville, Tenn., Oct. 19 - MannKind Corp. priced a $103.6 million private placement of units with the Mann Group LLC on Oct. 18, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal was announced on Wednesday alongside a public sale of the units and will be paid for by the investor cancelling a promissory note the company issued on Aug. 10, 2010.
The company will sell 40 million units of one common share and 0.75 warrants at $2.59 per unit.
Each whole warrant will be exercisable at $2.60 for 53 weeks. The strike price is identical to the Oct. 17 closing share price.
Jefferies and Piper Jaffray are the joint bookrunning managers for the public offering.
Proceeds from the public sale will be used for general corporate purposes, including research and development, capital expenditures, working capital and general administrative expenses. The company may also use a portion of the proceeds to acquire or invest in complementary businesses, products and technologies.
Valencia, Calif.-based MannKind is a biopharmaceutical company specializing in the discovery, development and commercialization of therapeutic products for diseases.
| Issuer: | MannKind Corp.
|
| Issue: | Units of one common share and 0.75 warrants
|
| Amount: | $103.6 million
|
| Units: | 40 million
|
| Price: | $2.59
|
| Warrants: | 0.75 warrants per unit
|
| Warrant expiration: | 53 weeks
|
| Warrant strike price: | $2.60
|
| Investor: | Mann Group LLC
|
| Announcement date: | Oct. 17
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| Pricing date: | Oct. 18
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| Stock symbol: | OTCBB: MNKD
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| Stock price: | $2.60 at close Oct. 17
|
| Market capitalization: | $376.79 million
|
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