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Mannatech shares jump double digits after announcing stock buyback

Last updated: 11:18 18 May 2018 EDT, First published: 10:23 18 May 2018 EDT

Vitamins
Shares of the company jumped in Friday morning trading

Marketing firm Mannatech Inc (NASDAQ:MTEX) saw its shares jump double digits after the company announced a stock buyback.

The health and wellness company will repurchase up to US$16mln worth of its common stock in a cash tender offer.

“This tender offer reflects Mannatech’s confidence in the future outlook of our business and the Company's long-term value and represents another important step in implementing our previously announced strategic plan, which contemplated reducing overall share count and using capital for the benefit of shareholders,” said CEO Alfredo Bala.

Shares added more than 20% to US$19.72 in Friday morning trading.

The Texas-based company announced last week that it would be issuing a US$0.13 quarterly dividend to its shareholders.

The company sells nutritional supplements and other wellness products through home-selling network channels similar to Amway, attracting individual sellers looking to make extra money on the side.

The dietary supplement maker paid a US$6mln settlement in 2009 in lawsuit brought forth by the Texas attorney general-turned-governor Greg Abbott after the marketing company was accused of violating the state’s Deceptive Trade Practices Act by making false claims about the health benefits of its product.

Former presidential candidate Ben Carson came under fire during his campaign after it was revealed that the pediatric neurosurgeon had given four paid speeches for the group and claimed that the company’s supplements helped him beat prostate cancer.

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