Mannatech Borrows 3.6 Million Dollars From Chairman and Insiders at 16 Percent

Mannatech, Incorporated disclosed in a Form 8-K that it entered into 3.6 million dollars in unsecured promissory notes with related parties on April 23, 2024.

The notes carry interest of 16 percent a year and mature September 30, 2026. Chairman J. Stanley Fredrick lent 2.5 million dollars, Tyler Rameson, through Jade Capital, lent 1.0 million dollars and Kevin Robbins lent 100,000 dollars. The company said it received a fairness opinion on the terms on April 15.

Mannatech said it will use the proceeds for working capital, payments to vendors, expansion outside the United States and technology investments.

The financing came weeks after Mannatech named Landen Fredrick chief executive, succeeding Alfredo Bala. The Flower Mound, Texas company sells nutritional supplements and skin care products through independent associates.