MannKind Corporation (NASDAQ:MNKD) has entered into definitive deals with certain institutional investors and other shareholders pertaining to a registered direct offering of a total of around 10.166 million shares at an offering price of $6 per share, for gross proceeds of around $61 million. The offering is anticipated to close on or about October 13, 2017, grounded on the satisfaction of customary closing conditions.
Michael Castagna, the Chief Executive Officer of MannKind, expressed that with this offering, they have made considerable progress in their initiatives to recapitalize the firm. H.C. Wainwright & Co. is serving as the exclusive placement agent for the registered direct offering. After removing the placement agent’s fees, the net proceeds are anticipated to be around $57.7 million. The company plans to use the net proceeds from the direct offering for general corporate and working capital purposes.
In unrelated news, MannKind reported that it has fully moved its corporate headquarters to a place in the Westlake Landmark office park in California. The company, which is presently commercializing Afrezza® inhalation powder, shifted from Valencia, California to be in a location well known for its biopharma talent and to provide greater convenience to its existing employees.
Castagna reported that they are a dynamic, rapidly growing and fast-moving company. To support this growth, they need to bring more talented people to their team. Moving to Westlake Village, which is closer to a large number of firms in their industry, will help them get top talent. They are thrilled to be a member of the Westlake Village as well as greater Conejo Valley business group.
MannKind has shattered the model of diabetes management with Afrezza, the exclusive inhalable insulin that enhances glycemic control in people with diabetes. The company also has additional therapeutic offerings in the pipeline utilizing its dry powder formulation as a medicine delivery platform.