Functional Brands adjusts Series C preferred stock conversion price

Functional Brands Inc. (NASDAQ: MEHA) announced it entered into a conversion price reduction and waiver agreement with all holders of its Series C convertible preferred stock.

The Lake Oswego, Oregon-based company modified the conversion price for Series C preferred stock to $0.1636 per share of common stock during the fixed conversion period. This price reflects the current market price at the time of execution and replaces existing tiered conversion prices and related tier allocation structure.

The company and preferred stockholders mutually waived the prohibition on below-price conversions with respect to conversions at the reduced conversion price.

"This agreement demonstrates our commitment to fostering alignment among all of our stockholders while maintaining capital structure flexibility," said Eric Gripentrog, chief executive officer. "By resetting the Series C conversion price to reflect current market realities, we're eliminating a structural overhang that has weighed on our common stock while simultaneously providing our preferred holders with a more practical path to liquidity."

Functional Brands operates in the health and wellness sector, developing and distributing functional health products, peptide therapies, and telehealth services through its digital platform Tru2u.health. The company focuses on metabolic health, longevity, and wellness solutions.

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