Functional Brands Restructures Capital Stack With New Series C

Functional Brands Inc ( (MEHA) ) just unveiled an update.

Effective March 9, 2026, Functional Brands Inc. entered into an exchange agreement with several institutional investors to swap all outstanding Series A and Series B Convertible Preferred Stock held by them for a package of new Series C Convertible Preferred Stock, cash, senior secured convertible notes and common stock, with an aggregate assigned stated value of $8.378 million. The deal restructures the company’s capital stack by issuing $6.03 million in Series C Preferred, $900,000 in staged cash payments, $837,800 in notes and 5.19 million common shares, while imposing trading volume limits on investors’ common stock sales to support market stability.

The newly created Series C Preferred, filed with Delaware authorities on March 12, 2026, carries a $1,000 stated value per share and is convertible into common stock at tiered fixed prices, with no dividends so long as the company is not in default and subject to standard anti‑dilution protections and a company repurchase option at stated value. The accompanying 12% senior secured convertible notes, amortizing over 17 months and convertible at a premium to the stock’s exchange-date price, are secured by a lien on substantially all company assets, enhancing investor protection but increasing the company’s secured leverage and encumbering its asset base.

More about Functional Brands Inc

Functional Brands Inc. operates as a public company focused on issuing and managing various classes of convertible preferred stock and debt instruments as part of its corporate financing structure. The company’s capital markets activity centers on preferred equity, secured convertible notes and common stock, targeting institutional investors and funds for its financing needs.

Average Trading Volume: 1,413,226

Current Market Cap: $3.12M

For an in-depth examination of MEHA stock, go to TipRanks’ Overview page.