In a significant development for Mangoceuticals, Inc., the Texas-based health services company has entered into an amended securities purchase agreement, securing additional equity funding through the sale of Series B Convertible Preferred Stock and associated warrants. This move, detailed in a recent SEC 8-K filing, is part of the company's ongoing efforts to bolster its financial position and fund operations.
The agreement, originally dated April 4, 2024, was modified on April 28, 2024, with the latest amendment taking place on June 27, 2024. The terms of the amended agreement include the issuance of Series B Preferred Stock with an initial stated value of $1,100 per share, representing a 10% discount to the stated value, and warrants to purchase up to 4,800,000 shares of common stock.
The company held its 2024 Annual Meeting of Stockholders on June 17, 2024, where stockholders approved the issuance of more than 19.99% of the company's outstanding common stock upon conversion of the Series B Preferred Stock and exercise of the warrants, in compliance with Nasdaq Listing Rule 5635(d).
As part of the amended terms, the company is restricted from issuing additional equity securities under certain conditions until either 30 days after the effective date of a registration statement for the resale of the issued shares or 180 days after the initial closing date.
The company has reserved 50,000,000 shares of common stock for potential issuance upon the exercise of the warrants and conversion of the Series B Preferred Stock. The Series B Preferred Stock is convertible into common stock at a rate determined by a formula subject to a floor price, which was recently increased from $0.035 per share to $0.15 per share.
The recent closings, including the sale of 750 shares of Series B Preferred Stock and warrants to purchase additional shares of common stock, have provided Mangoceuticals with an influx of capital. The company anticipates a fourth closing subject to the registration of shares under the Securities Act of 1933.
In other recent news, Mangoceuticals Inc., also known as MangoRx, has been making significant strides in its strategic developments. The company has recently secured a patent in Japan for its preventive care technology, a move that expands its global patent portfolio, which also includes a recent acquisition from Intramont Technologies, Inc. The patented technology focuses on preventing infections transmitted orally and is set to be introduced to the Japanese market.
In further developments, MangoRx has successfully produced its first batch of Mango ED oral dissolvable tablets through its subsidiary MangoRx Mexico S.A. de C.V. The product is aimed at the erectile dysfunction market in Mexico and other Latin American countries and is part of the company's strategy to penetrate these markets.
Adding to its product line, MangoRx has also announced the introduction of two new oral drugs, Slim and Trim, aimed at aiding weight management. These drugs are expected to be available through its telemedicine platform starting in the early third quarter.
In terms of compliance, MangoRx received a 180-day extension from Nasdaq to meet the minimum bid price requirement. To address this issue, the company is considering a reverse stock split, which has already received stockholder approval.
Lastly, MangoRx has expanded into the nutraceutical product space with the acquisition of a global patent portfolio from Intramont Technologies, Inc. The portfolio includes products designed to prevent illnesses transmitted via the oral cavity, marking the company's strategic entry into the non-prescription based products market.
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