MannKind Receives Forgivable Loan under the Paycheck Protection Program
April 15 2020 - 8:00AM
MannKind Corporation (NASDAQ:MNKD) today announced that it received
a loan of approximately $4.9 million from JPMorgan Chase Bank,
N.A., as lender, pursuant to the Paycheck Protection Program
(“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act
(the “CARES Act”) on April 10, 2020. The PPP loan matures on April
9, 2022 and bears interest at a rate of 0.98% per annum. Payments
of principal and interest commence in November 2020. The PPP loan
may be prepaid by MannKind at any time prior to maturity with no
prepayment penalties.
All or a portion of the PPP loan may be forgiven
by the U.S. Small Business Administration (“SBA”) upon application
by MannKind beginning 60 days but not later than 120 days after
loan approval and upon documentation of expenditures in accordance
with the SBA requirements. Under the CARES Act, loan forgiveness is
available for the sum of documented payroll costs, covered rent
payments, covered mortgage interest and covered utilities during
the eight week period beginning on the date of loan approval.
For purposes of the CARES Act, payroll costs exclude compensation
of an individual employee in excess of $100,000, prorated annually.
Not more than 25% of the forgiven amount may be for non-payroll
costs. Forgiveness is reduced if full-time headcount declines, or
if salaries and wages for employees with salaries of $100,000 or
less annually are reduced by more than 25%. In the event the PPP
loan, or any portion thereof, is forgiven pursuant to the PPP, the
amount forgiven is applied to outstanding principal.
MannKind intends to use all proceeds from the
PPP Loan to retain employees, maintain payroll and make lease,
mortgage interest and utility payments.
MannKind also announced that effective April 27,
2020 (the beginning of the next payroll cycle), it will implement a
20% pay reduction for certain employees whose payroll costs exceed
$100,000, including executive officers. MannKind expects to
maintain this reduction for at least 10 weeks. The company does not
intend to reduce pay for employees whose payroll costs are below
$100,000.
Conference Call
MannKind will host a conference call and webcast
to provide an operational update today at 4:30 p.m. Eastern Time.
Those interested in listening to the conference call live via the
Internet may do so by visiting the Company's website at
http://www.mannkindcorp.com under News & Events.
A replay of the call will be available on
MannKind's website for 14 days.
About MannKind Corporation
MannKind Corporation (NASDAQ: MNKD) focuses on
the development and commercialization of inhaled therapeutic
products for patients with diseases such as diabetes and pulmonary
arterial hypertension. MannKind is currently commercializing
Afrezza® (insulin human) Inhalation Powder, the Company’s first
FDA-approved product and the only inhaled ultra rapid-acting
mealtime insulin in the United States, where it is available by
prescription from pharmacies nationwide. MannKind is headquartered
in Westlake Village, California, and has a state-of-the art
manufacturing facility in Danbury, Connecticut. The Company also
employs field sales and medical representatives across the U.S. For
further information, visit www.mannkindcorp.com.
Forward-Looking Statements
This press release contains forward-looking
statements that involve risks and uncertainties. Words such as
"believes," "anticipates," "plans," "expects," "intends," "will,"
"goal," "potential" and similar expressions are intended to
identify forward-looking statements. These forward-looking
statements are based upon MannKind's current
expectations. Actual results and the timing of events could differ
materially from those anticipated in such forward-looking
statements as a result of various risks and uncertainties detailed
in MannKind's filings with the SEC. For a discussion
of these and other factors, please refer to MannKind’s annual
report on Form 10-K for the year ended December 31, 2019 as
well as MannKind’s other filings with the SEC. You are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
All forward-looking statements are qualified in their entirety by
this cautionary statement, and MannKind undertakes no
obligation to revise or update any forward-looking statements to
reflect events or circumstances after the date of this press
release.
Company Contact:
818-661-5000 ir@mannkindcorp.com
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