merulina coral

Ok so I bought one of these about 2 weeks ago under the impression that it was a monti cap. Yesterday, I found out that it is actually a merulina coral. After doing some research, I see that this coral has not been propagated in captivity (I bought it for the purpose of propagation) also, it should never be kept by beginners (I consider myself a seasoned beginner).
Anyways, I had it on the bottom of the tank on the sand bed under MH's. I saw no polyp extension until a few days ago, the polyp extension was followed by a stringy substance being excreted from the coral. The tips have begun to get blackened but not too severe. Also, on one peak of the merulina, I see some tissue receding.
After doing some research on the coral, I placed it mid tank level in moderate flow.
Polyp extension is still visible but I worry that the blackened tips, stringy excretion and receding tissue means the end of this coral.
Has anyone have experience with this type of coral?
Thanks for any input

 

likes strong lighting and moderate water flow, they are heavy mucus producers

 

One pic of when I got it.

 

Thanks, It's under 3x250watts MH with moderate water flow.
Now that I know about the heavy mucus I'm relieved but I'm still concerned about the receding tissue.

 

Good night. just keep an eye on it and see what happens.

 

Well, It's still producing a lot of mucus today but I do see some more polyp extension since I placed it higher in the tank tho.