Mannatech, Incorporated announced on April 23, 2024 the company entered into three separate unsecured Loan Agreement and 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 the company?s large shareholder, Tyler Rameson, the company?s second large 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.