MangoRx (NASDAQ:MGRX) Discloses Equity-Based Transactions with Consulting Firms
Mangoceuticals, Inc., a Texas-based health services company, has recently announced agreements with consulting firms by issuing equity as payment for services rendered. These transactions were disclosed in a recent SEC filing and are a strategic move by MangoRx to secure essential services and funding.
On August 15, 2024, MangoRx signed a Consulting Agreement with Veritas Consulting Group, Inc. for investor relations and business advisory services. Veritas received 150,000 shares of restricted common stock valued at $43,155 and will be compensated $7,500 monthly for their services.
A week later, on August 22, MangoRx entered a Marketing Agreement with Levo Healthcare Consulting, Inc. to provide digital marketing services. Levo was issued 195,000 restricted shares, vesting monthly, and will receive $6,250 per month. Additionally, MangoRx has agreed to grant Levo warrants to purchase up to 300,000 shares upon achieving customer milestones.
On September 10, 2024, Luca Consulting, LLC was engaged for management consulting services. In return, Luca received 650,000 shares of restricted common stock valued at $175,500 and will receive a total cash payment of $30,000 over the six-month agreement period.
Furthermore, MangoRx utilized its Equity Line of Credit (ELOC) with Platinum Point Capital, issuing 2,000,000 shares at $0.26 per share, resulting in net proceeds of $521,016 after fees and expenses. This transaction is part of a larger commitment by Platinum Point Capital to purchase up to $25 million of MangoRx's common stock.
Additionally, Platinum Point Capital converted Series B Preferred Stock into common stock, with 140 shares converted into 718,552 common shares on September 26, 2024, and 190 shares into 1,003,842 common shares on October 2, 2024.
In other news, MangoRx introduced a new weight loss treatment, Slim, available through its telemedicine platform. The company has also secured a patent in India for its preventive care technology and initiated clinical trials with Vipragen Biosciences. MangoRx received DEA authorization for its telemedicine operating system and appointed Dr. Douglas Christianson as Director of Medical Research and Product Innovation.
The company has formed a strategic partnership with the International Society of Frontier Life Sciences and Technology to distribute its men's health and wellness products in Asia and Latin America.
Analysis:
MangoRx's recent transactions and agreements reflect its proactive approach to securing essential services and funding. The company's market cap of $8.92 million indicates its small-cap status, explaining its strategy of leveraging equity. Despite challenges like cash burn and short-term obligations exceeding liquid assets, MangoRx maintains impressive gross profit margins of 58.19%.
Investors should note the stock's volatility, with significant returns over the past week and month but a considerable decline over the past year. InvestingPro offers additional tips for a comprehensive analysis of MangoRx's financial health and market position, helping investors make informed decisions.