MannKind inks $61m direct offering of common stock

MannKind (NSDQ:MNKD) said today that it inked a deal with a group of unnamed investors for a registered direct offering of 10,166,600 shares of the company’s common stock for $6.00 apiece.

The $61 million offering is slated to close later this week.

“With this offering, we have made substantial progress in our efforts to recapitalize the company,” CEO Michael Castagna said in prepared remarks.

After fees for the placement agent, H.C. Wainwright & Co., MannKind said it expects to net $58 million from the offering. The company plans to use its newly-acquired funds for working capital and general corporate purposes.

In August, MannKind and One Drop launched the A-One trial evaluating MannKind’s inhaled insulin, Afrezza, for use with One Drop’s digital diabetes management platform.

The companies reported that they are enrolling people with Type II diabetes and randomizing them in two treatment arms. One group of patients will use Afrezza with One Drop Premium and the other group will use just One Drop Premium. Researchers plan to measure changes in hemoglobin A1C, quality of life, self-care and treatment satisfaction.

One Drop’s premium platform includes a mobile app, a glucose monitor and test strips, as well as a coaching service for patients with diabetes.

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