Mannatech Receives Nasdaq Delisting Warning

TL;DR

Nasdaq's coming for Mannatech's listing, company's looking into it.

AI Summary

Mannatech, Incorporated announced on August 19, 2024, that it received a notice from The Nasdaq Stock Market indicating a failure to meet a continued listing rule. The company is currently evaluating the notice and will provide further updates as appropriate.

Why It Matters

This notice suggests Mannatech may be at risk of being delisted from Nasdaq, which could significantly impact its stock liquidity and investor confidence.

Risk Assessment

Risk Level: high — Receiving a notice of failure to meet continued listing rules poses a significant risk of delisting from a major stock exchange.

Key Players & Entities

• Mannatech, Incorporated (company) — The company filing the 8-K
• The Nasdaq Stock Market (company) — The exchange issuing the notice
• August 19, 2024 (date) — Date of the earliest event reported

FAQ

Key Financial Figures

• $0.0001 — ich registered Common Stock, par value $0.0001 per share MTEX The Nasdaq Stock Market
• $8,199,000 — the Company's stockholders' equity was $8,199,000, and therefore, the Company was not in
• $10,000,000 m — ng Rule 5450(b)(1)(A), which requires a $10,000,000 minimum stockholders' equity standard. Th
• $10 million — t have stockholders' equity of at least $10 million. The Company is currently evaluating v

Filing Documents

• mtex-20240819.htm (8-K) — 29KB
• 0001056358-24-000066.txt ( ) — 150KB
• mtex-20240819.xsd (EX-101.SCH) — 2KB
• mtex-20240819_lab.xml (EX-101.LAB) — 21KB
• mtex-20240819_pre.xml (EX-101.PRE) — 12KB
• mtex-20240819_htm.xml (XML) — 3KB

01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing. On August 19, 2024, Mannatech, Incorporated (the "Company") received a written notification from the Listing Qualifications Department of the Nasdaq Stock Market ("Nasdaq") notifying the Company that, based on the Company's Quarterly Report on Form 10Q for the quarter ended June 30, 2024, the Company's stockholders' equity was $8,199,000, and therefore, the Company was not in compliance with Nasdaq Global Market's Listing Rule 5450(b)(1)(A), which requires a $10,000,000 minimum stockholders' equity standard. The Notice has no immediate effect on the listing or trading of the Company's common stock on The Nasdaq Global Market and the common stock will continue to trade under the symbol "MTEX". Pursuant to Nasdaq Marketplace Rule 5810(c)(2)(C), the Company has been provided 45 calendar days, or until October 3, 2024, to supply a specific plan to regain compliance with all Nasdaq Global Market listing requirements and the Company's time frame to complete its plan. If the plan is accepted, Nasdaq can grant an extension of up to 180 calendar days from the date of the Notice, or until February 15, 2025, to evidence compliance. If the plan is not accepted, the Company will have the right to appeal and the common stock would remain listed on The Nasdaq Global Market until the completion of the appeal process. To regain compliance, the Company must have stockholders' equity of at least $10 million. The Company is currently evaluating various alternative courses of action to regain compliance, and the Company intends to submit a plan with Nasdaq before October 3, 2024 to maintain its Nasdaq listing. There can be no assurance that the Company will be able to regain compliance with the minimum stockholders' equity requirement or maintain compliance with the other listing requirements. Alternatively, the Company believes it is eligible to transfer the listing of its

01 Other Events

Item 8.01 Other Events. The following risk factor is provided to supplement the risk factors of the Company previously disclosed in periodic reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2023 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024: As of June 30, 2024, the Company's stockholders' equity was less than the required $10 million required to be maintained for continued listing on The Nasdaq Global Market. The Company's ability to publicly or privately sell equity securities and the liquidity of the Company's common stock could be adversely affected if the Company is delisted from The Nasdaq Global Market or if the Company were unable to transfer its listing to another stock market. As previously reported on our Current Report on Form 8-K filed on August 21, 2024, on August 19, 2024, the Company received a notice (the Notice) from The Nasdaq Stock Market LLC (Nasdaq) stating that, because the Company did not maintain minimum stockholders' equity of $10 million (the List Rule), the Company was no longer in compliance with Nasdaq Listing Rule 5450(b)(1)(A). The Notice had no immediate effect on the listing or trading of the Company's common stock on The Nasdaq Global Market and the common stock continues to trade under the symbol "MTEX". Pursuant to Nasdaq Marketplace Rule 5810(c)(2)(C), the Company was provided 45 calendar days, or until October 3, 2024, to submit a plan to Nasdaq to regain compliance. If the plan is accepted, Nasdaq can grant an extension of up to 180 calendar days from the date of the Notice, or until February 15, 2025, to evidence compliance. If the plan is not accepted, the Company will have the right to appeal and its common stock would remain listed on The Nasdaq Global Market until the completion of the appeal process. To regain compliance, the Company must have stockholders' equity of at least $10 million. The Company is cur

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: August 21, 2024 MANNATECH, INCORPORATED By: /s/ James Clavijo James Clavijo Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR