Maybe Al is engineering a sale of stock to the company MNKD will partner with. He doesn't want to dilute by issuing more stock. If the partner tried to buy on the open market, the demand for that many shares could not be filled at an attractive price. So he has his bankers arrange for them to be on the buy side of a short sale at a very attractive set price. The short will be covered when the bonds are converted, and the shares that are returned to MNKD might be worth a bit more than when they were borrowed.
When the music starts the short interest may find that no one wants to dance with them. When the music stops they may not have anywhere to sit.
Common stock for the partner is important because this allows them to profit more down the road while cutting into the shareholders' profits less. (They become a shareholder, and we get a win-win with less dilution.)
Right now, Al is not managing with the specific purpose of increasing the pps. He is preparing the company to take Afrezza to market next year. To do that he needs more cash and he has gotten it from BAC. They have loaned MNKD $100,000,000 at a 5.5% interest. To get that done, he also had to loan them 9M shares of stock, which will be bought or returned. What part of this do you folks not understand?
$110 million for 9 million shares. That is $12 a share to borrow. He couldn't issue shares at that price. Only problem is the volume is high enough to crush this company's share value to 2. I dumped my shares today wish I did it at 7, but at least I sold calls against them near the high.
I think the shares will be trading in a month, right? So if this stock goes to 3 I will just buy my stake back. And if they announce a partner before then I will just buy it at 25. Because I know that this company could be making $10/share in 4-5 years.