Muscle Pharm Corporation (MSLPQ)

[StocksAnonymous]

They are merely stating that 866,000 shares of the company's common stock along with their inventory and other assets are collateral in the event that they are unable to pay. These shares are held in treasury, they weren't issued to ANB bank. A bank will allow you to consolidate your debt if your financial position improves, because the risk of you being unable to pay the loan back has decreased. Since their risk has decreased, the interest rate that they require from you also decreases, and yes, another $40k origination fee on the new loan.

The Note matures on February 20, 2018. Loans made pursuant to Loan Agreement are secured by (i) a security interest in all of the Company’s inventory, (ii) all of the Company’s accounts receivable or other payments due, (iii) all the Company’ general intangible properties, including, but not limited to, tax refunds, intellectual property and customer lists, and (iv) 866,600 shares of the Company’s common stock currently held in the Company’s treasury, pursuant to the Security Agreement entered into by and between the Company and ANB (the “Security Agreement”), as attached hereto as Exhibit 10.3 (the Security Agreement together with the Note and Loan Agreement are collectively referred to herein as the “Loan Documents”).

Security Agreement
To secure the payment and performance of the Secured Debts, I grant you a security interest in all of the Property described in this Agreement that I own........600000.000 shares of Common stock in MusclePharm Corporation, represented by certificate number(s) 5172-2. and additionally described: CUSIP 627335201. 260900.000 shares of Common stock in MusclePharm Corporation, represented by certificate number(s) 5179-7. and additionally described: CUSIP 627335201."