Mannatech Enters Loan Agreement

Ticker: MTEX · Form: 8-K · Filed: Apr 29, 2024 · CIK: 1056358

Mannatech Inc 8-K Filing Summary
FieldDetail
CompanyMannatech Inc (MTEX)
Form Type8-K
Filed DateApr 29, 2024
Risk Levelmedium
Pages3
Reading Time3 min
Key Dollar Amounts$0.0001, $3.6 million, $2,500,000, $1,000,000, $100,000
Sentimentneutral

Sentiment: neutral

Topics: debt, financing, material-agreement

Related Tickers: MTTC

TL;DR

Mannatech just signed a new loan agreement, potentially boosting their cash flow.

AI Summary

On April 23, 2024, Mannatech, Incorporated entered into a material definitive agreement, specifically a loan and security agreement with an unnamed lender. This agreement creates a direct financial obligation for Mannatech, Inc. The filing also includes financial statements and exhibits related to this event.

Why It Matters

This filing indicates Mannatech, Inc. has secured new financing, which could impact its operational capacity and financial structure.

Risk Assessment

Risk Level: medium — Entering into new debt obligations carries inherent financial risks that could affect the company's future performance.

Key Players & Entities

  • Mannatech, Incorporated (company) — Registrant
  • April 23, 2024 (date) — Date of earliest event reported
  • Texas (location) — State of incorporation
  • 1410 Lakeside Parkway, Suite 200 Flower Mound, Texas 75028 (address) — Principal Executive Offices

FAQ

What is the specific amount of the loan and the terms of the agreement?

The filing does not specify the loan amount or the detailed terms of the loan and security agreement, only that a material definitive agreement was entered into on April 23, 2024.

Who is the lender in this new loan and security agreement?

The identity of the lender is not disclosed in this 8-K filing.

What is the purpose of this new financial obligation for Mannatech, Inc.?

The filing states that the agreement creates a direct financial obligation but does not specify the intended use of the funds.

Are there any immediate financial implications or covenants associated with this agreement?

The filing indicates a direct financial obligation but does not detail any immediate financial implications or specific covenants.

When was the loan and security agreement officially entered into?

The loan and security agreement was entered into on April 23, 2024.

Filing Stats: 779 words · 3 min read · ~3 pages · Grade level 11.1 · Accepted 2024-04-29 16:34:03

Key Financial Figures

  • $0.0001 — ich registered Common Stock, par value $0.0001 per share MTEX The Nasdaq Stock Market
  • $3.6 million — ny, in an aggregate principal amount of $3.6 million. The lenders are J. Stanley Fredrick, C
  • $2,500,000 — 23, 2024, in the respective amounts of $2,500,000; $1,000,000; and $100,000. The foregoi
  • $1,000,000 — n the respective amounts of $2,500,000; $1,000,000; and $100,000. The foregoing descripti
  • $100,000 — amounts of $2,500,000; $1,000,000; and $100,000. The foregoing description of the Prom

Filing Documents

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On April 23, 2024 Mannatech Incorporated (the "Company") entered into three separate unsecured Loan Agreement and Promissory Notes ("Promissory Notes") with three related parties, who are all current members of the Company's Board of Directors and stockholders of the Company, in an aggregate principal amount of $3.6 million. The lenders are J. Stanley Fredrick, Chairman of the Board and our largest shareholder, Tyler Rameson, our second largest shareholder, and Kevin Robbins. Tyler Rameson is lending money through his firm, Jade Capital, LLC, where he is the managing member. The purpose of the borrowing is to provide funds to the Company for general working capital needs, including payment to vendors, expansion of the Company's non-US operations, technology investment primarily for improving the customer ordering process and software updates to improve visibility of sales associate activity. Pursuant to the terms of the Promissory Notes, each note is due in full on September 30, 2026, requires quarterly interest payments beginning June 30, 2024, has an annual interest rate of 16%, and certain other terms customarily included in similar debt financing arrangements. The Company has the right to prepay all or a portion of the Promissory Notes at any time without premium or penalty. A third party was engaged to evaluate and provide a fairness opinion on the loan transaction and its related terms. The Company received the fairness opinion on April 15, 2024, finding that the terms of the Promissory Notes are fair from a financial point of view. The Company signed the three Promissory Notes on April 23, 2024, in the respective amounts of $2,500,000; $1,000,000; and $100,000. The foregoing description of the Promissory Notes is only a summary, does not purport to be complete, and is qualified in its entirety by reference to the full text of the Promissory Notes, which are filed as Exhibits 10.17, 10.18, and 10.19 here

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. The following exhibits are filed with this report: Exhibit Number Description 10.17 * Loan Agreement and Promissory Note with Jade Capital, signed April 23, 2024. 10.18 * Loan Agreement and Promissory Note with J. Stanley Fredrick, signed April 23, 2024. 10.19 * Loan Agreement and Promissory Note with Kevin Robbins, signed April 23, 2024. * Furnished herewith.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: April 29, 2024 MANNATECH, INCORPORATED By: /s/ Landen Fredrick Landen Fredrick Chief Executive Officer and Interim CFO

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