Mangoceuticals, Inc. (MGRX), a Texas-based health services company with a market capitalization of $6.1 million, entered into a significant service agreement with Greentree Financial Group, Inc. on December 2, 2024. According to InvestingPro data, the company maintains impressive gross profit margins of 58.6% despite facing financial challenges, including rapid cash burn and short-term liquidity concerns. This agreement follows the expiration of their previous contract on September 30, 2024.
Under the new service agreement, Greentree will assist Mangoceuticals with compliance filings for the upcoming fiscal year, including the consolidation structure and entries, as well as advising on documents and accounting systems to ensure compliance with U.S. GAAP and SEC disclosures. This comes at a crucial time as the stock appears undervalued despite experiencing an 80% decline over the past year. Greentree will also act as a liaison for Mangoceuticals with third-party service providers and prepare the company's tax returns for the 2024 tax year.
In exchange for these services, Mangoceuticals has agreed to issue 40,000 shares of its restricted common stock to Greentree, which were fully earned upon issuance. Additionally, a cash payment of $40,000 is to be made, with half due by the end of December 2024 and the remainder by the end of March 2025. Greentree's expenses incurred under this agreement will also be reimbursed by Mangoceuticals.
The service agreement is set to remain in effect until October 15, 2025, but can be terminated earlier with 45 days' notice. Should Mangoceuticals choose to terminate the agreement before the end of the term, the entire cash fee is immediately due and payable.
Alongside the service agreement, Mangoceuticals disclosed the sale of 75,000 shares of common stock to Platinum Point Capital on December 4, 2024, at $2.50 per share, resulting in net proceeds of $159,950, after accounting for fees and expenses. This sale was part of an Equity Purchase Agreement with Platinum Point Capital, which could total up to $25 million in common stock purchases over a 2-year period.
The issuance of shares to both Greentree and Platinum Point Capital was exempt from registration under the Securities Act, as these transactions did not involve a public offering, were for investment purposes, and were made to accredited investors.
This report is based on a press release statement and the financial details disclosed in the SEC filing by Mangoceuticals, Inc. For deeper insights into MGRX's financial health, including 14 additional ProTips and comprehensive financial metrics, visit InvestingPro for exclusive analysis and investment tools.
In other recent news, Mangoceuticals, also known as MangoRx, has initiated an investigation into potential stock manipulation following unusual trading activity.
The company has also been exploring strategic alternatives, including potential mergers and acquisitions, to enhance shareholder value. Furthermore, MangoRx is concurrently dealing with a lawsuit from Eli Lilly (NYSE:LLY) over allegations of copying its weight-loss medication. Despite these challenges, the company has launched two new weight-loss products, TRIM and Slim.
MangoRx recently signed a Consulting Agreement with CFO Eugene M. Johnston and issued 33,333 shares of its common stock to Platinum Point Capital, thereby raising an additional $78,787. As part of its global expansion, MangoRx has secured patents in India for its preventive care technology and initiated clinical trials with Vipragen Biosciences.
The company has also formed a strategic partnership with the International Society of Frontier Life Sciences and Technology for product distribution in Asia and Latin America. These are recent developments for MangoRx as it continues to innovate and expand.
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