MannKind Corporation (NASDAQ: MNKD)
MannKind Corporation is having a rough day in the market today, and for good reason. Yesterday, after the closing bell, the company made an announcement that proved to be a concern. Below, we’ll talk about the announcement, what we’re seeing from the stock as a result, and what we’ll be watching for with regard to MNKD ahead.
MNKD Announces Coming Meeting Surrounding A Potential Reverse Split
As mentioned above, MannKind Corporation made an announcement in after hours yesterday. The announcement was a cordial invitation to a Special Meeting of Stockholders of MannKind Corporation. The meeting will be held at 9:00 a.m. PT at the company’s office at 25134 Canyon Loop, Suite 300, Valencia, California 91355. However, the fact that the company is holding a meeting isn’t the concerning part. The concerning part is what the meeting is about.
Primarily, the meeting is centered around a proposed reverse stock split. The goal is to do a reverse split in the range of 1-for-3 to 1-for-10. MNKD also plans to vote on the authorization of an adjournment meeting if needed. Investors are understandably unhappy. After all, reverse splits, while only cosmetic changes, are generally a sign of trouble. As a result, investors are pushing the value of the stock downward.
How The Stock Is Reacting To The News
As investors, one of the first things that we learn is that the news moves the market. When positive news is released with regard to a publicly-traded company, we can expect to see gains. However, news of a reverse split is anything but positive. So naturally, today we’re seeing declines on the stock. Currently (10:52), MNKD is trading at $0.57 per share after a loss of $0.14 per share (19.60%) so far today.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on MNKD. In particular, we’re interested in the company’s plans with regard to the split and to see what investors approve later on this month. We’re also watching the company’s sales process. At the end of the day, they have a product that can be massively disruptive, but haven’t shown the ability to sell it. We’ll be watching the news closely and bringing it to you as it breaks!
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