MannKind Repays Certain Debt Obligations
April 03 2024 - 6:00AM
MannKind Corporation (Nasdaq: MNKD), a
company focused on the development and commercialization of inhaled
therapeutic products and devices for patients with endocrine and
orphan lung diseases, announced today that it has repaid in full
all outstanding indebtedness under both its credit and security
agreement with MidCap Financial Trust (the “Loan Agreement”) and
its convertible promissory note issued to Mann Group LLC (the
“Note”).
On April 1, 2024, MannKind made a payment to the lenders under
the Loan Agreement of approximately $31.6 million, including a
contractually obligated exit fee of $2.8 million and a prepayment
fee of approximately $0.3 million, in full satisfaction of all of
the Company’s debt obligations under the Loan Agreement, which
would have matured on August 1, 2025. In connection with the
repayment of outstanding indebtedness by MannKind, all liens,
mortgages and security interests in any assets or property securing
the obligations under the Loan Agreement were automatically
terminated and released and MannKind and its subsidiaries were
automatically released from all guarantees.
In addition, on April 2, 2024, MannKind satisfied its
obligations under the Note in exchange for payment to the Mann
Group of (i) approximately $8.9 million and (ii) the issuance of
1.5 million shares of MannKind’s common stock. Upon receipt of this
consideration, all indebtedness under the Note was satisfied in
full and all obligations under the Note were automatically
terminated.
“Repaying the MidCap loan agreement eliminates our most
expensive debt going forward and releases our assets from their
security interests,” said Michael Castagna, PharmD, Chief Executive
Officer of MannKind Corporation. “In addition, we believe that our
stock price is currently undervalued, so we took the opportunity to
repay the Mann Group debt through a partial conversion that is
expected to reduce future potential dilution by over two million
shares.”
About MannKindMannKind Corporation (Nasdaq:
MNKD) focuses on the development and commercialization of
innovative therapeutic products and devices to address serious
unmet medical needs for those living with endocrine and orphan lung
diseases.
We are committed to using our formulation capabilities and
device engineering prowess to lessen the burden of diseases such as
diabetes, pulmonary arterial hypertension (PAH) and nontuberculous
mycobacterial (NTM) lung disease. Our signature technologies –
dry-powder formulations and inhalation devices – offer rapid and
convenient delivery of medicines to the deep lung where they can
exert an effect locally or enter the systemic circulation.
With a passionate team of Mannitarians collaborating nationwide,
we are on a mission to give people control of their health and the
freedom to live life.
Please visit mannkindcorp.com to learn more, and follow us on
LinkedIn, Facebook, Twitter or Instagram.
Forward-Looking Statements This press release
contains forward-looking statements about future shareholder value
and dilution. 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, which
include, without limitation, the risk that our stock price is
volatile, the risk that we may need to raise additional capital to
fund our operations, the risk that our results of operations will
fluctuate for the foreseeable future and that we may incur losses
and may not generate positive cash flow from operations in the
future, and other risks detailed in MannKind’s filings with the
Securities and Exchange Commission, including under the “Risk
Factors” heading of its Annual Report on Form 10-K for the year
ended December 31, 2023. 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.
MANNKIND is a registered trademark of MannKind Corporation.
For
MannKind: Christie
Iacangelo, Corporate
Communications (818)
292-3500 Email:
media@mannkindcorp.com
Rose Alinaya, Investor Relations(818) 661-5000Email:
ir@mannkindcorp.com
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