DALLAS - Mangoceuticals, Inc. (NASDAQ: MGRX), a developer and marketer of men's health and wellness products with a current market capitalization of $6.14 million, announced today it has initiated an investigation into potential stock manipulation following its reverse stock split on October 16, 2024. According to InvestingPro data, the company's overall financial health score stands at 1.74, indicating significant challenges ahead. The move comes in response to abnormal trading patterns and a significant increase in shareholder accounts, suggesting possible market manipulation.
The company observed a surge in single-share transactions and a request from the Depository Trust Company Corporation (DTC) for an additional 213,327 shares, approximately 9% of MangoRx's total issued and outstanding shares. This request hinted at an increase in shareholder accounts from 5,000 pre-split to potentially over 200,000 post-split, a rise that MangoRx deems implausible without manipulation.
In light of these developments, Jacob Cohen, MangoRx's CEO, has declined the DTC's share request pending the outcome of the investigation. Cohen stated, "our priority is to protect the interests of our shareholders and the integrity of the Company's market value."
MangoRx's situation mirrors that of Upexi, Inc. (NASDAQ:UPXI), which also reported unusual trading activity and a dramatic rise in shareholder accounts following a reverse stock split. The company's stock has faced significant pressure, with InvestingPro data showing a 76% decline over the past year, though analysis suggests the stock may currently be undervalued. Unlock 12 additional exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription. Upexi identified requests for round-up shares that represented nearly 19% of its outstanding shares post-split.
MangoRx focuses on offering men’s wellness services and products through a telemedicine platform, targeting areas such as erectile dysfunction, hair growth, hormone replacement therapies, and weight management. The company emphasizes the ease of access to its services, with prescriptions reviewed by physicians and discreetly shipped to patients.
The company's statement concludes with a cautionary note regarding forward-looking statements, outlining various risks and uncertainties that could affect future results. These include potential outcomes of the stock manipulation investigation, legal matters, strategic transactions, and regulatory reviews, among others.
This announcement is based on a press release statement and reflects the company's commitment to transparency and shareholder protection as it navigates through the investigation process.
In other recent news, Mangoceuticals, also known as MangoRx, has been making significant strides. The company recently signed a Consulting Agreement with CFO Eugene M. Johnston, who will continue to provide his services for a 12-month period. In addition, MangoRx has been actively raising capital, recently issuing 33,333 shares of its common stock to Platinum Point Capital, thereby raising an additional $78,787.
Simultaneously, MangoRx has been exploring strategic alternatives, including potential mergers and acquisitions, to enhance shareholder value. However, the company is concurrently dealing with a lawsuit from Eli Lilly (NYSE:LLY) over allegations of copying its weight-loss medication. Despite these challenges, MangoRx has launched two new weight-loss products, TRIM and Slim, further solidifying its position in the weight management market.
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 the recent developments for MangoRx as it continues to innovate and expand its product offerings in the healthcare sector.
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