Diversified Botanics, Inc., formerly MIT45, filed Chapter 11 on October 7, 2026, seeking to continue its botanical-products business and reorganize. Chief Executive Officer Ryan Niddel says annualized revenue contracted from approximately $98 million at its peak to approximately $30 million, leaving the company unable to sustain obligations built around a larger business. Its immediate restructuring measures include outsourced manufacturing and a request to reject two Utah property leases. First-day declaration
The distinction is between preserving the brands and reducing the cost of producing and supporting them. Niddel says Diversified has contracted with a Missouri manufacturer after stopping Utah production. The company separately seeks court approval to reject its Utah leases effective as of the petition date. First-day declarationLease-rejection motion
This account reflects docket materials reviewed with a filing cutoff of October 15, 2026.
Diversified's brands include MIT45, Golden Monk, Kavaa and Uprising. Niddel attributes the financial distress to several overlapping pressures: market confusion involving kratom and concentrated 7-hydroxymitragynine, or 7-OH, products; litigation expenses; and investment in larger manufacturing facilities. These are management's explanations for the filing. First-day declaration
The facility expansion increased monthly occupancy costs from approximately $50,000–$60,000 to approximately $220,000, according to Niddel. Diversified also invested approximately $9 million in equipment and facilities for a dedicated extraction operation, financed with a combination of cash and debt from Mazuma Capital Corp. The $9 million describes the investment funded from both sources; it is not presented as the outstanding Mazuma loan balance. Niddel says the investment was planned around an assumed annualized operating revenue base of approximately $70 million, substantially above the approximately $30 million reported at filing. First-day declaration
Litigation added another cash demand. Niddel reports approximately $40,000–$120,000 in monthly litigation defense expenditures. He also identifies trademark litigation brought by the Massachusetts Institute of Technology, a former employee's wrongful-termination action and collection litigation. The declaration describes allegations and defense costs, rather than findings of liability. First-day declaration
The petition estimates both assets and liabilities in the $1,000,001–$10 million range and lists an estimated 100–199 creditors. Those petition ranges measure assets and liabilities, separately from the annualized revenue figures in management's declaration. Niddel reports approximately $200,000 held across the company's bank accounts on the petition date. PetitionFirst-day declaration
Missouri manufacturing and the Utah lease request
Niddel says Utah restrictions on kratom extracts prompted Diversified to cease manufacturing in the state on or about July 31, 2026. He reports continued sales of existing inventory in other states and a contract with a Missouri third party to manufacture the company's products. The declaration establishes the reported contracting arrangement without identifying a start date for production by that manufacturer. First-day declaration
Diversified's lease motion targets the Denali and Everest properties in Draper, Utah. The company says it vacated both premises before filing and generally delivered possession to the landlords. It argues that rent and related charges would drain estate resources because the properties no longer serve its manufacturing needs. It also alleges that the landlords withheld consent to a proposed subtenant; that assertion is the debtor's position. Lease-rejection motion
The requested relief includes rejection effective October 7 and abandonment of remaining personal property that the company considers of inconsequential value or too costly to remove and store. These are requests for approval, rather than completed lease dispositions. Lease-rejection motion
Interim orders support continued operations
The court authorized Diversified to continue using its existing cash-management system and bank accounts on an interim basis. That order permits ordinary cash handling; it does not establish a new financing commitment. Interim cash-management order
A separate interim order authorizes, but does not require, up to $124,675 in specified employee-related payments, including unpaid compensation, withholding obligations, reimbursements and benefit costs, subject to the order's limits. This is payment authority, not evidence that the amounts have been paid. Interim employee-payment order
Claims administration and upcoming hearings
Who is the claims agent?
The court authorized Stretto to serve as claims and noticing agent, administer proofs of claim and maintain the official claims register. Appointment order
Has a proof-of-claim deadline been set?
The October 15 case notice states that the proof-of-claim deadline was not yet set. It schedules the meeting of creditors for November 6, 2026, at 1:00 p.m. Eastern Time by Zoom. Case notice
Final consideration of the first-day operating motions is scheduled for November 10, 2026, at 1:00 p.m. Eastern Time, with objections due November 3 at 4:00 p.m. Eastern Time. Second-day hearing notice
The lease-rejection motion is scheduled for the same hearing date and time, with the same objection deadline. Its notice permits the court to grant relief without a further hearing if no timely objections are received. Whether Diversified obtains the requested lease rejection—and its proposed October 7 effective date—remains the immediate unresolved cost-reduction issue in the materials reviewed. Lease-motion hearing notice
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.