MannKind Corporation (Nasdaq: MNKD) today announced the pricing of an underwritten public offering of 40,000,000 shares of its common stock, together with warrants to purchase up to an aggregate of 30,000,000 shares of its common stock. Each share of common stock is being sold together with a warrant for a combined purchase price of $2.00. Each warrant entitles the holder to purchase 0.75 of a share of common stock The gross proceeds to MannKind from this offering are expected to be $80.0 million, not including any future proceeds from the exercise of the warrants and before deducting underwriting discounts and commissions and other estimated offering expenses payable by MannKind. The warrants will be exercisable at a price of $2.60 per share and will expire 53 weeks from the date of issuance. The shares of common stock and warrants are immediately separable and will be issued separately. The offering is expected to close on or about October 23, 2012, subject to customary closing conditions. In addition, MannKind has granted the underwriters a 30-day option to purchase up to an additional 6,000,000 shares of common stock and/or warrants to purchase up to an aggregate of 4,500,000 shares of common stock. MannKind anticipates using the net proceeds from the offering to fund its on-going late stage clinical trials of AFREZZA ® and for general corporate purposes, including research and development expenses, capital expenditures, working capital and general administrative expenses.
Jefferies & Company, Inc. and Piper Jaffray & Co. are acting as joint book-running managers for the offering. JMP Securities LLC, Griffin Securities, Inc. and Imperial Capital, LLC are acting as co-managers for the offering.
The securities described above are being offered by MannKind pursuant to a shelf registration statement previously filed with the Securities and Exchange Commission (the “SEC”), which the SEC declared effective on September 24, 2012. A final prospectus supplement related to the offering will be filed with the SEC and is available on the SEC’s website located at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to this offering, when available, may be obtained from Jefferies & Company, Inc., Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 12th Floor, New York, NY 10022, or by telephone at 877-547-6340, or by email at Prospectus_Department@Jefferies.com, or from Piper Jaffray & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, or by telephone at 800-747-3924, or by email at email@example.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.