Motivated by a stock price that tripled over the past 10 days and in real need for new cash, MannKind (MNKD) sold 10 million shares in an overnight stock offering priced at $6 per share. After fees, the sale nets the struggling peddler of Afrezza, an inhaled insulin, just under $58 million.
MannKind remains a failing business with a bloated $700 million market valuation, so think of the new financing as a small bandage on a gaping wound. The company burned through $23 million in cash during the third quarter while managing to sell (on a net basis) just $1.8 million to $2.2 million of Afrezza, according to preliminary financial results disclosed Wednesday.
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