Texas-based Mannatech Incorporated, a developer of medicinal chemicals and botanical products, has successfully transferred its stock listing to the Nasdaq Capital Market from the Nasdaq Global Market, effective Monday. The company's common stock will continue to trade under the ticker symbol "MTEX".
This move comes after Mannatech received a notice on August 19, 2024, from Nasdaq's Listing Qualifications Department, indicating that the company did not meet the minimum net equity requirement of $10 million required for continued listing on the Nasdaq Global Market. The approval to transition to the Nasdaq Capital Market, which operates similarly to the Global Market but with different financial requirements, was based on Mannatech's compliance with the Capital Market's listing standards.
The Nasdaq Capital Market is known for its continuous trading and adherence to corporate governance standards. Mannatech's ability to satisfy the Capital Market's listing criteria ensures the company's common stock remains accessible to investors without any disruption in trading.
In other recent news, Mannatech Incorporated has been notified of a potential delisting from the Nasdaq Global Market due to an equity shortfall. As of June 30, 2024, the company's stockholders' equity was $8.199 million, falling short of the required $10 million threshold. The company is currently exploring options to address this shortfall and plans to submit a compliance plan by October 3, 2024.
In other developments, Mannatech recently held its annual Shareholders' Meeting and announced a strategic expansion into the Thailand market. The meeting saw the re-election of its Class I directors, Larry A. Jobe and Kevin Robbins, and the ratification of BDO USA, P.C. as the company's independent public accounting firm for the fiscal year ending December 31, 2024.
Furthermore, the company's expansion into the Thailand market is part of a broader strategy to tap into the Southeast Asian market, with Thailand serving as a key entry point. This move aims to introduce Mannatech's Glycan technology-based products to a new demographic and leverage the growth potential of the Thailand direct sales and dietary supplement markets.
InvestingPro Insights
Mannatech's recent transition to the Nasdaq Capital Market reflects the company's adaptability in maintaining its public listing. This move aligns with some key financial metrics and insights provided by InvestingPro.
According to InvestingPro data, Mannatech's market capitalization stands at $14.38 million USD, which provides context for its move to the Capital Market given the previous challenges in meeting the Global Market's equity requirements. The company's price-to-book ratio of 1.75 as of the last twelve months ending Q2 2024 suggests that the stock is trading above its book value, which could be of interest to value-oriented investors.
InvestingPro Tips highlight that Mannatech "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations." These factors likely contributed to the company's ability to meet the Nasdaq Capital Market's listing criteria and maintain investor confidence during the transition.
However, it's important to note that Mannatech is "quickly burning through cash" and is "not profitable over the last twelve months," as per InvestingPro Tips. This aligns with the reported operating income of -$1.01 million USD for the last twelve months ending Q2 2024. These factors may have contributed to the company's need to transition to the Capital Market and could be areas for investors to monitor going forward.
For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for Mannatech, providing a deeper understanding of the company's financial position and market performance.
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