MannKind Corporation Announces Proposed Private Placement of Convertible Senior Notes
March 01 2021 - 7:00AM
MannKind Corporation (NASDAQ:MNKD) today
announced that it intends to offer, subject to market conditions
and other factors, $150.0 million aggregate principal amount of
Convertible Senior Notes due 2026 (the "notes") in a private
placement (the "offering") to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as amended
(the "Securities Act"). MannKind also intends to grant the initial
purchasers of the notes an option to purchase, within a 13-day
period beginning on, and including, the date on which the notes are
first issued, up to an additional $22.5 million aggregate principal
amount of notes.
The notes will be general unsecured obligations of MannKind and
will accrue interest payable semiannually in arrears. Upon
conversion, MannKind will pay or deliver, as the case may be, cash,
shares of MannKind’s common stock or a combination of cash and
shares of MannKind’s common stock, at its election. The interest
rate, initial conversion rate and other terms of the notes will be
determined at the time of pricing of the offering.MannKind intends
to use the net proceeds from this offering for working capital and
other general corporate purposes, including a Phase 3 clinical
trial of Afrezza in pediatric subjects and further development of
product candidates in MannKind’s pipeline. MannKind may use a
portion of the proceeds from this offering to pay down a portion of
existing debt or for acquisitions or strategic investments in
complementary businesses or technologies, although MannKind does
not currently have any plans for any such debt repayment,
acquisitions or investments.The notes and any shares of MannKind’s
common stock issuable upon conversion of the notes have not been
and will not be registered under the Securities Act, any state
securities laws or the securities laws of any other jurisdiction,
and unless so registered, may not be offered or sold in the United
States absent registration or an applicable exemption from, or in a
transaction not subject to, the registration requirements of the
Securities Act and other applicable securities laws.This press
release is neither an offer to sell nor a solicitation of an offer
to buy any of these securities nor shall there be any sale of these
securities in any state or jurisdiction in which such an offer,
solicitation or sale would be unlawful prior to the registration or
qualification thereof under the securities laws of any such state
or jurisdiction.
About MannKind
Corporation
MannKind Corporation (NASDAQ: MNKD) focuses
on the development and commercialization of inhaled therapeutic
products for patients with endocrine and orphan lung
diseases. 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. Afrezza is also available by
prescription in Brazil where it is commercialized by the
Company’s partner Biomm SA. 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.
Forward-Looking Statements
This press release contains forward-looking
statements that involve risks and uncertainties, including
statements regarding the anticipated terms of the proposed offering
and MannKind’s expected use of proceeds from the proposed offering.
Words such as “believes”, “anticipates”, “plans”, “expects”,
“intend”, “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 these risks and uncertainties, which
include, without limitation, market conditions, MannKind’s ability
to complete the proposed offering on the expected terms, or at all,
whether MannKind will be able to satisfy closing conditions related
to the proposed offering, unanticipated uses of capital, and other
risks detailed in MannKind’s filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for
the year ended December 31, 2020 and subsequent
periodic reports on Form 10-Q and current reports on Form 8-K.
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:818-661-5000ir@mannkindcorp.com
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