On Monday, MannKind said it hoped to sell "up to" 50 million shares of its stock directly to Israeli-managed index funds. These exchange-traded funds were required to buy MannKind shares because the stock is now dual listed on the Tel Aviv Stock Exchange. Instead of buying MannKind shares on the open market, MannKind offered to sell new, unissued stock to the Israeli funds at a discount.
MannKind managed to sell 13.8 million shares directly to the Israeli funds, nowhere close to 50 million shares. At a sale price of $2.61 per share, MannKind added $36 million in cash to its coffers.
"These transactions provide MannKind with needed near term liquidity to support Afrezza operations and Technosphere developments, while minimizing shareholder dilution," said MannKind Chief Financial Officer Matt Pfeffer, in a statement.
"Near-term" is right. MannKind just raised enough cash to keep the company operational for two or three quarters at its current burn rate.
Another MannKind plan falls short.