And as you also stated, the original conversion rate of 160 shares per $1000 note would have caused 10273120 shares to be issued. With the new deal, 8,732,152 will be issued.
At first I thought MACK was getting a bad deal. Now it looks like the warrant holders are taking a haircut.
The only reason I can assume they are doing the deal is to cash out early, given the rates on high yield debt have risen... so they should be able to cash out and re-lend at a much better rate than 4.5%. Otherwise, why would they do it, since they can convert at any time so long as the terms are met as defined in the original agreement under section: Conversion Upon Satisfaction of Sale Price Condition.
So if everything was converted at once, using my 8.5 VWAP, the math would look like this:
64207000 + 27696332 = 91903332
91903332 / 12M = $7.65 / share
So after re-reading the original terms, what you're implying makes more sense.
MACK has altered the agreement to force a new option for early conversion... where about $27M out of the remaining $60M will be converted based on 10day trailing VWAP.
Given I'm holding 30K shares now, this looks like a much better deal than I first assumed. I think I can live with these terms. It also should lower the short interest. I guess we'll see.
Perhaps I misinterpreted the press release. I took the "Additional Closing" to be an add-on to those same warrant holders that were part of the initial conversion. Apparently Canphan7 and Brandon did as well based on their post.
Are you implying that the "Additional Closing" is separate and distinct from the original one?
Using 8.5 as my VWAP:
27696332 / 8.5 = 3258392 shares
Add those to the original total and you get 8,732,152 + 3258392 = 11990554 shares (about 12M)
So the final price per share is about $5.35. 64207000 / 12000000 = $5.35.
In addition, pursuant to the Conversion Agreements, at the Additional Closings (as defined in the Conversion Agreements), the Holders of the Notes will receive a number of shares of the Company's common stock representing an aggregate of $27,696,332 as additional payments in respect of the conversion of the Notes, such number of shares determined based on the Daily VWAP (as defined in the Conversion Agreements) of the Company's common stock for each of the trading days in the 10-day trading period following the date of the Conversion Agreements. The number of shares to be issued on each Additional Closing is defined in the Conversion Agreements as the "Daily Share Amount".
Here are the original terms for early conversion... so it looks like MACK is giving the warrant holders a better deal to convert early... strange... I guess we wait for earnings to understand this?
The Notes are convertible, under certain circumstances and during certain periods, at the option of the holder, based on an initial conversion rate of 160.0000 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of $6.25 per share of common stock, subject to adjustment in certain circumstances.
You might look into an options strangle or straddle for LPCN. They are the only man left standing in the near term oral TRT market with a June 28 PDUFA. The stock will likely move sharply up or down depending on FDA decision... assuming they don't end up with a 30 - 90 day delay.
Based on the price movement, it looks like this was being priced in. I'm guessing MACK would have closed at 9 yesterday, so with the approximate 12M new shares (10% dilution), the stock has dropped 10% to 8.10. The question remains whether the converts will take the $$$ and run when they get their shares.
I don't know what the original deal spec'd for early conversion so hard to judge the why the approximate price of $5.35/share.
Takeover talk seems to be reassuring market that Congress or FDA will not remove MDVN's patent protection. MDVN had traded down on that speculation.
The CHMP members provide their comments and following plenary discussion, a final consolidated list of questions is agreed by the CHMP on day 120 and communicated to the applicant. The procedure clock is stopped, usually for up to 3 months but with a possibility to extend by a further 3 months maximum.
On receipt of the responses from the applicant, the clock is re-started (day 121) and the rapporteur and co-rapporteur prepare a joint assessment report of the responses by day 150. Any issue(s) identified are discussed on day 180 during the plenary CHMP meeting and a decision may be made on whether to issue a positive CHMP opinion. If there still are any outstanding or unresolved issues, the clock is stopped again. APPLICANTS NORMALLY RESPOND WITHIN 1 month but in exceptional circumstances, a further EXTENSION of 1 month (or maximum 2 months) may be granted if justified by the applicant and agreed by the CHMP. Day 181 is the re-start of the clock when the response is assessed and an oral explanation may take place. On or before day 210, the CHMP adopts its opinion.
3.4.5. - irinotecan - Orphan - EMEA/H/C/004125
Baxter Innovations GmbH; treatment of pancreatic cancer Scope: Letter from the applicant dated 18 March 2016 requesting extension of clock stop to respond to List of Outstanding Issues. List of Outstanding Issues adopted on 25.02.2016. List of Questions adopted on 24.09.2015.
Here's one example I found where a phase II trial was used as the basis for label expansion. I'm wondering if the recent strength in the stock price was in part due to the Barclay's presentation where, for the first time, mgmt. alluded to the possibility that Onivyde + 5fu could beat gem+abraxane. If so, I'm wondering if MACK could file for first line for Oni + 5fu.
Velcade expansion based on phase II trial...
The FDA has expanded the bortezomib (Velcade) label to allow for retreatment in patients with multiple myeloma who previously responded to the proteasome inhibitor, according to an announcement made by Millennium/Takeda, the companies that manufacture the drug.The expanded approval was based on findings from the phase II RETRIEVE study that explored intravenous bortezomib retreatment in 130 patients with multiple myeloma.
I was wondering if MACK can apply for a label expansion on the basis of results for the nal-IRI + 5#$%$/LV arm of NCT02551991.
I'm patiently waiting to see if IBB retests 289 and 299 levels. They are critical because they bump up against the top of the trend line established before the Jan selloff.
I'm not sure how to interpret the March options when predicting a price level, so I've not sold any calls.
Ultimately, I hope to see MACK look like SGEN...
SGEN Revenues in M
2011 2012 2013 2014 2015
94.78 210.81 269.26 286.76 336.8
SGEN $31.76/share, market cap 4.47B, ~140M shares outstanding.
MM is probably sitting on all those long Mar puts. Someone (Inns?) is shorting MACK using March puts. I've been wondering what the price action might be as we approached March 18.