MannKind Inc. shares rose 5 percent on Wednesday after investors learned that the biotech’s founder had acquired more shares in exchange for cancelling debt the company owed him.
The Valencia company disclosed in a late Monday regulatory filing that the Mann Group, an entity controlled by Chief Executive Alfred Mann, on Friday completed purchase of 40 million shares and warrants to purchase another 30 million shares.
Mann, who now controls about 47 percent of shares, cancelled more than $107 million in debt that Mann Group held in a promissory note.
Mann has loaned the company his money to keep it afloat while awaiting U.S. regulatory approval for its first product, an inhaled insulin device. The approval has been delayed pending further tests.
The company also said that shareholders at a special meeting on Thursday voted to increase the number of common shares by 57 percent to 550 million.
Shares on Wednesday closed up 11 cents, or 5 percent, to $2.31 on the Nasdaq.