On October 17, MannKind Corporation announced a plan to sell 40,000,000 shares of its common stock, plus warrants to purchase up to 30,000,000 shares, in a public offering, which it said may or may not be completed. Each share is being sold with a warrant, for a total price of $2.00/share. The funds raised will be used for on-going trials of Afrezza inhaled insulin.
Shortly after announcing the offering, the company announced a commitment from The Mann Group, controlled by MannKind CEO Alfred Mann, for purchase of 40,000,000 shares and that the “aggregate purchase price will be paid by cancellation of principal indebtedness under MannKind’s existing revolving loan arrangement with The Mann Group. At October 5, 2012, the principal amount outstanding under the loan arrangement was $224.6 million, and MannKind had $20.4 million remaining of available borrowings under the arrangement.”
MannKind completed patient recruitment for two additional studies of Afrezza in October 2012.
Read the MannKind press release.
