Mangoceuticals, Inc. (NASDAQ:MGRX), a Texas-based health services company, has disclosed the sale of equity securities in an unregistered offering, raising additional capital as per its latest SEC filing. The transaction took place on Thursday, October 24, 2024, when the company sold 33,333 shares of its common stock at $2.36 per share to Platinum Point Capital, resulting in net proceeds of $78,787 after accounting for fees, discounts, and expenses.
The sale was conducted under the terms of an Equity Purchase Agreement (ELOC) established on April 5, 2024, which allows Mangoceuticals to direct the purchaser to buy shares up to 100% of the average daily trading volume over the five trading days preceding the advance date. The shares are sold at 90% of the gross proceeds received by the purchaser over a three-day valuation period following the delivery of an advance notice.
In addition, on October 18, 2024, the company reported the conversion of 200 shares of Series B Preferred Stock into 93,299 shares of common stock, valued at $2.358 per share, equivalent to a total value of $220,000. This conversion was in line with the terms of the Series B Preferred Stock.
Both the equity sale and the conversion of preferred stock are part of Mangoceuticals' efforts to finance its operations and growth strategies. The company has taken measures to comply with the Securities Act of 1933, claiming exemptions from registration under Section 4(a)(2) and/or Rule 506 of Regulation D for the sale of common stock, and Section 3(a)(9) for the conversion of preferred stock. These transactions were made with accredited investors, and the securities have been subjected to transfer restrictions with the appropriate legends.
In other recent news, Mangoceuticals, Inc., also known as MangoRx, has been exploring strategic alternatives, including mergers and acquisitions, to enhance shareholder value. Concurrently, the company has faced a lawsuit from Eli Lilly (NYSE:LLY) over allegations of copying its weight-loss medication. MangoRx has launched two new weight-loss products, TRIM and Slim, further positioning itself in the weight management market.
The company has also issued equity to consulting firms such as Veritas Consulting Group, Levo Healthcare Consulting, and Luca Consulting for various services. Moreover, MangoRx has entered into an Equity Line of Credit (ELOC) with Platinum Point Capital, issuing shares and receiving significant net proceeds. On the international front, MangoRx has secured patents in India for its preventive care technology and initiated clinical trials with Vipragen Biosciences.
Additionally, the company has formed a strategic partnership with the International Society of Frontier Life Sciences and Technology for product distribution in Asia and Latin America.
InvestingPro Insights
Mangoceuticals' recent equity sale and preferred stock conversion reflect the company's efforts to secure additional capital, which aligns with some key financial metrics and trends highlighted by InvestingPro.
According to InvestingPro data, Mangoceuticals has a market capitalization of $5.82 million USD, with a price-to-book ratio of 0.41 as of the last twelve months ending Q2 2024. This low price-to-book multiple, identified as an InvestingPro Tip, suggests the stock may be undervalued relative to its book value.
However, the company faces significant challenges. InvestingPro Tips indicate that Mangoceuticals is "quickly burning through cash" and is "not profitable over the last twelve months." This is corroborated by the reported operating income margin of -983.76% for the same period, highlighting the company's current struggle with profitability.
Despite these challenges, Mangoceuticals has shown impressive revenue growth, with a 245.48% increase in the last twelve months ending Q2 2024. This growth, coupled with a gross profit margin of 58.19%, demonstrates the company's potential in its market segment.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Mangoceuticals, providing a deeper insight into the company's financial health and market position.
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