Mangoceuticals Issues Common Stock in Exchange for Preferred

Mangoceuticals , Inc. (NASDAQ:MGRX), a Texas-based company in the health services sector currently valued at $12.3 million, has announced the conversion of its Series B Convertible Preferred Stock into common stock. According to InvestingPro data, the company maintains impressive gross profit margins of 61.7%, though its overall financial health score indicates challenges ahead. On March 25, 2025, a series of transactions took place where holders of the Series B Convertible Preferred Stock opted to convert their holdings into shares of Mangoceuticals’ common stock.

In the first transaction, 116 shares of the preferred stock, with an aggregate stated value of $127,600, were converted into 85,067 shares of common stock. This was followed by the conversion of 350 shares of preferred stock, valued at $385,000, into 256,667 shares of common stock. Additionally, 146 shares of preferred stock, with a stated value of $160,600, were exchanged for 107,067 common shares.

The conversions continued the following day, on March 26, 2025, when a holder converted 218 shares of Series B Convertible Preferred Stock, valued at $239,800, into 159,867 shares of common stock. All conversions were based on a current conversion price of $1.50 per share.

These transactions were exempt from registration under Section 3(a)(9) of the Securities Act of 1933, as they were exchanges made directly with existing security holders without the payment of any commission or remuneration for soliciting the exchange.

The company’s decision to convert preferred stock into common stock can be a strategic move to simplify its capital structure or provide liquidity to preferred shareholders. With a current ratio of 0.05, InvestingPro analysis reveals that Mangoceuticals’ short-term obligations exceed its liquid assets, potentially influencing this decision. The stock currently trades at $2.38, and while the company has not disclosed specific reasons for these transactions, InvestingPro subscribers can access 13 additional key insights about MGRX’s financial position and market performance.

This information is based on a press release statement filed with the Securities and Exchange Commission on March 28, 2025. While Mangoceuticals has not provided additional commentary on these conversions’ impact, the company’s financial metrics show a challenging position with negative earnings of -$9.58 million over the last twelve months. The stock has experienced significant volatility, declining 46.6% in the past week alone. Investors seeking deeper insights into MGRX’s valuation and growth prospects can access comprehensive analysis through InvestingPro’s advanced financial tools and metrics.

In other recent news, Mangoceuticals, Inc. has announced significant developments affecting its corporate structure and research initiatives. The company disclosed changes to its equity securities, including the amendment of the Certificate of Designations for its Series B Convertible Preferred Stock, which adjusts conversion prices and dividend rights. In a related move, Mangoceuticals issued 200,000 shares of restricted common stock to 6330 Investment & Consulting Gmbh as part of a consulting agreement aimed at identifying strategic partners and acquisition opportunities. Additionally, Mangoceuticals has made progress in its research efforts, advancing studies on antiviral technology targeting avian influenza in collaboration with Vipragen Biosciences.

The company is also conducting concurrent studies on H1N1 and H5N1 viruses, showing promising preliminary results in reducing viral loads. In terms of governance, Mangoceuticals introduced a new class of Series A Super Majority Voting Preferred Stock, granting holders majority control over corporate decisions. This change significantly alters the power dynamics within the company’s shareholder base. Furthermore, the company has ratified amendments to its 2022 Equity Incentive Plan, which includes an "evergreen" provision for automatic share increases. These recent developments highlight Mangoceuticals’ strategic efforts to enhance its business operations and governance framework.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.