MannKind Corp. priced an offering of 26,666,667 common shares and warrants to buy up to 26,666,667 shares for a gross deal size of $40 million.

The company is selling each common shares together with a common stock purchase warrant for a combined purchase price of $1.50 each. The 12-month warrants will be exercisable at $1.60 per share.

The offering is expected to close Dec. 26, subject to closing conditions.

Leerink Partners is acting as sole book-running manager for the offering, while BTIG LLC and Oppenheimer & Co. Inc. are acting as co-lead managers. H.C. Wainwright & Co. LLC acted as a financial adviser to MannKind in connection with the offer.

Westlake Village, Calif.-based MannKind develops and sells inhaled therapeutic products for diabetes and pulmonary arterial hypertension patients.