MannKind Corporation has entered into a purchase agreement with The Mann Group , for the sale of shares of its common stock and warrants to purchase its common stock to The Mann Group for financing purposes.
The Mann Group has committed to purchase 40,000,000 restricted shares of MannKind’s common stock and restricted warrants to purchase up to an aggregate of 30,000,000 restricted shares of MannKind’s common stock, the same number of firm shares and warrants that are expected to be sold in the concurrent public offering, which was initially announced on October 17, 2012.
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 to be purchased by The Mann Group will be sold at $2.59 per share, the consolidated closing bid price for MannKind’s common stock as reported by The NASDAQ Global Market on October 17, 2012, and the restricted warrants to be purchased by The Mann Group will be priced at $0.125 for each share of MannKind’s common stock underlying such warrants, resulting in an aggregate purchase price of approximately $107.4 million.
This aggregate purchase price will be paid by cancellation of principal indebtedness under MannKind’s existing revolving loan arrangement with The Mann Group.
For further deal information visit Current Agreements (subscription required)
Read: more on financing deals in pharma, biotech, life science partnering deal news, insights and glossary
View: Current Partnering’s Partnering Scorecard – view top life science partnering deals by value
View: Current Partnering’s M&A Scorecard – view top life science M&A deals by value
View: Current Partnering’s Financing Scorecard – view top life science financing deals by value
View: Current Partnering’s Deal Metrics – the latest deal trend infographics for life science deal making
View: Current Partnering’s Big Pharma Deal Making Scorecard – latest trends in big pharma deal making activity