ARTICLE | Financial News

MannKind agrees to sell up to 36.4M shares

August 11, 2010 11:39 PM UTC

MannKind Corp. (NASDAQ:MNKD) said it entered two deals to sell up to 36.4 million shares to two investors in order to raise money and reduce its debt. Under the deals, the diabetes company plans to sell up to 700,000 shares each to Seaside 88 and the Mann Group as often as every two weeks over almost a year for up to 18.2 million shares each.

Under a May shelf filing, MannKind will sell shares to Seaside at an 8% discount to the volume weighted average trading price of MannKind's stock for 10 consecutive trading days preceding each closing date only if that price is $6.50 or higher. In parallel, MannKind will sell an equal amount of shares to the Mann Group, which is controlled by MannKind CEO Alfred Mann, at the closing price of the last trading day before the sale of shares to Seaside, with a minimum price of $7.15. The purchase price for the shares will be paid for via the cancellation of an equal amount of MannKind's $252 million in outstanding debt to the Mann Group. ...