Muscle Pharm Corporation (MSLPQ)

[turokman]

Nice to hear from you , Goldbond . You must be very happy from your short from $14 . Nice work. But , even you , have to see value in this pink paper at these levels . Wynnefield just added 75,000 shares I hardly think anyone wants to throw good money after bad , so maybe he will be right this time. $mslp

[Madcowelixir]

turok

How about telling the most important aspect of the story.

Wynnefield is in their shares at a basis of over $5 a share (down -96% on their investment)

White Winston basis is ~$2 a share (down -91% on their investment)

Ryan basis is ~$1.50 a share. (down -85% on his investment)

Stock is trading at $.18 cents

All 3 are completely upside down. If you are inferring these insiders are smart money you are sadly mistaken and misleading.

[turokman]

Here is the latest share count:


2020-07-13 13D/A WYNNEFIELD PARTNERS SMALL CAP VALUE LP I 2,011,905


2019-11-08 13D/A White Winston Select Asset Fund Series Fund Mp-18, Llc 3,648,355


13D/A Drexler Ryan Charles19,653,779


Assuming 32m o/s this 6.8 million shares not held by institutional investors or the CEO

$MSLP

[turokman]

Not many shares left. 32 million o/s

Drexler owns 19.5M , Amerop/Winston white 3.5M and wynnefield 2M

Leaves 6 million shares not held by institutions or the CEO .. 1.5 million bucks worth .

Won’t take much pain pressure to get this pop

[SLC-JD]

Of course he's putting pressure on - there's zero volume without current financials.

I don't believe the company is profitable now, or that it has a path to get there with its current leadership. Drex propped it up for years, and now there's the PPP $$. When that's gone, it either needs some sort of recapitalization, or a divestiture - I think Drex goes for the latter.

The two questions I have: 1)whether it'll be a break-even deal for Drex (not including salary and interest already paid) at $1.11, or if he'll hold out for more; and 2)whether it goes to someone like Wynnefield who tries to make a go of it as-is, or to another tangentially related company looking primarily for distribution channels.

[turokman]

Did you read the $MSLP filing ? Wynnefield is putting pressure on Drexler to release financials . You don’t think the stock pops once financials are released?

32 million shares @ .25 makes this an 8 million dollar market cap .

They likely did 100m in sales in 2018..

[Stock_Dog]

Are there any shares available ?

[SLC-JD]

75k shares seems a little half assed if he’s trying to average down.

[turokman]

Nelson Obus was the buyer of the stock ! Wynnefield bought another 75k shares a few weeks ago:

The Wynnefield Reporting Persons have acquired shares of Common Stock during the last 60 days as follows:

Name Transaction Date Number of Shares Price Per Share

Wynnefield Partners I Purchase 6/23/2020 45,360 $0.19

Wynnefield Partners Purchase 6/23/2020 30,240 $0.19


https://www.sec.gov/Archives/edgar/data/1251565/000110465920083037/tm2024071-1_sc13da.htm

[turokman]

Looks like $MSLP Musclepharm is still building their relationship with selling on Amazon.

They’ve devoted a new site to it :
https://bestsellers.musclepharm.com/

[Madcowelixir]

The last time sales were disclosed, GNC was less than 5% of total sales. Costco and Amazon were nearly half of all sales.

[SLC-JD]

Well shit.

Of course, we're assuming it's their biggest customer. Given the massive black hole in their disclosure, who knows?

(see how I'm both hopelessly pessimistic and tentatively optimistic in one oblique comment?)

[codie]

Musclepharm's biggest customer, GNC, files for bankruptcy.

[MakeItRain88]

Jynxed it... haha just kidding. Go $MSLP!

[dareinkler]

I believe the payroll portion of PPP loan doesn’t count for employees earning north of 100k so it won’t even be considered for the 700k salary.

[Madcowelixir]

PPP mandates at least 80% of the funds have to go directly to employee paychecks (I guess that includes Ryan's $700K per year in salary) and 15% minimum must go to overhead expenses. 5% is flexible.

I laugh at the pump material being posted again. Quoting fake SEO sites that contributors here offer as expert facts is especially inane. ColeofDuty is not an expert in BCAA. These are sites that pay writers $20 or less to try and boost SEO rankings. Clearvoice is a legitimate company that does this but ColeofDuty (video game knockoff name) is not.

[SLC-JD]

"Did they allow share buybacks with PPP money like the 2008 bailouts ? We know drexler got a million bucks .... just sayin’."

Based on past performance (you know, when they still made their financials public), they needed the PPP $$ to keep the lights on and employees paid.

[turokman]

BCAA Supplements Market to witness astonishing growth with Key Players | Vega, MusclePharm, Optimum Nutrition
Post


A new Profession Intelligence Report released by Stats and Reports with the title Global BCAA Supplements Market “can grow into the most important market in the world that has played an important role in making progressive impacts on the global economy. Global BCAA Supplements Market Report presents a dynamic vision to conclude and research market size, market hope and competitive environment. The study is derived from primary and secondary statistical data and consists of qualitative and numerical analysis. The main company in this survey is Vega, MusclePharm, Optimum Nutrition...

$MSLP


https://coleofduty.com/news/2020/06/23/bcaa-supplements-market-to-witness-astonishing-growth-with-key-players-vega-musclepharm-optimum-nutrition/

[Carlgetsmoked]

Anything to keep the doors open and the party going. I know I was in today. Maybe it was just something in the air lol

[turokman]

92k shares traded today of Musclepharm, over 10x recent volume and one of the single highest trading days in years. One big buy of 75k.

They do say volume before price . I’d guess to see a SC-13 in the next few days . This has to be Winston white / Amerop or Wynnefield or hopefully drexler himself .

Did they allow share buybacks with PPP money like the 2008 bailouts ? We know drexler got a million bucks .... just sayin’.

$MSLP

[turokman]

Musclepharm is still a worldwide brand . That’s what seems to have been forgotten here . It’s still popular in many other countries . Take a look at The musclepharm moment in Rugby. $MSLP

Sydney Roosters: MusclePharm Moment | Round 6 https://t.co/BRNJERFM5s

— World Club Challenge🌎 (@WClubChallenge) June 22, 2020

[turokman]

Great story on Instagram. Can’t believe this stock is at 0.25


https://www.instagram.com/p/CBlis9lJCLy/

$MSLP

[turokman]

I’m still seeing a random bidder come on from time to time . I’ve seen 5,000,000 shares on the bid but usually it’s around 500,000 shares . Interesting . $MSLP

[turokman]

Do you think it was Drexler or Musclepharm itself trying to buy back stock on sale ?

I have to wonder who it else it could be ? Amerop or Wynnefield capital . ?

Someone added $100,000 to the pot here .

$MSLP

[Carlgetsmoked]

I think I remember reading that. It really seems like the word is getting out there and some real interest is being generated as evident by the enormous bids last week

[turokman]

Saw this one posted on another site :


Musclepharm $MSLP a long forgotten stock .... has to pop sooner or later ?

I have a penny stock at $0.30 - Musclepharm ticker: $MSLP that is currently valued at 6 million dollars but did 100m in sales in 2018 . It seems there is tremendous upside opportunity right now as a protein supplier as meat supply is running short . One of their product is sold at Costco - Combat Powder ..

While BK is an option, CEO Ryan Drexler owns 18 million of 33 million shares outstanding . He seems to be committed to loaning the company money and keeping it afloat while we works to achieve profitability, something past leadership couldn’t . In fact he recently converted those shares to equity at $1.11 per share reducing company debt by 18 million . See filing below :


Item 8.01 Other Events.
Mr. Ryan Drexler, the Chief Executive Officer, President and Chairman of the Board of Directors of MusclePharm Corporation, a Nevada corporation (the “Company”), delivered a notice to the Company and its independent directors of his election to convert, effective as of September 16, 2019 (the “Notice Date”), $18,000,000 of the amount outstanding under that certain Amended and Restated Convertible Secured Promissory Note, dated as of November 8, 2017 (the “Note”), issued by the Company to Mr. Drexler, into shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”),
——————————————————
at a conversion price of $1.11 per share,
——————————————————-
pursuant to the terms and conditions of the Note (the “Partial Conversion”).

source: https://www.sec.gov/Archives/edgar/data/1415684/000165495419010894/mslp_8k.htm


Musclepharm was a big brand in its peak 2013-2016 with signing Arnold Schwarzenegger and Tiger Woods.

They have a solid Instagram presence with 625K followers : https://instagram.com/musclepharm?igshid=6ty6kmgk2cmb

I determined a minimum fair value of $2.64 based on prior sale of Glanbia to optimum nutrition. OM sold for 300m while doing 157m in sales. Musclepharm did 100m in sales in 2018 and has been cutting expenses.

MusclePharm $MSLP seems to have 5-10X upside from here .

[Carlgetsmoked]

It was all over the place last week. 250k 500k 5m lol. Someone wants it alllllll. Signs of a pop coming if I ever saw one

[turokman]

I wonder if the 5 million bid at 0.21 is going to come back this week. $mslp

Look at that giant bid on $MSLP pic.twitter.com/wAITdBCuHu

— Ted Rosen (@rosen_ted) June 4, 2020

[Carlgetsmoked]

I'm trying to get a nice scoop in today and average down on my position. I'm still a believer. I like turoks way of thinking. Every dog has its day

[turokman]

Been doin pretty well, thanks for asking. Had some nice wins lately in $DEAC/$DKNG and shorting $LFIN. I came back here recently and saw the stock price was absolutely shocked by it. So I started looking into it and the share structure is set to where Drexler owns 19.5 million of the 31 million shares. There isn't a whole lot of debt left since Drexler converted it to equity. The market is valuing this at a 6-8 million dollar company which I think is crazy cheap. I have to think the brand and the sales have to be worth than much more. This was a pretty strong brand at one point.

$MSLP

[codie]

Not too bad. How about you?

[turokman]

How the hell are you codie ?

[codie]

Holly crap you still cheering this stock?

[turokman]

I have to think they are coming soon. Four 8-K’s in the last few months . Seems like they are finally getting on top of things in the office . $MSLP

[turokman]

8K out... they just got a 1% loan ... huge ... also mentions we might get financials soon... June 30th...


On May 14, 2020, MusclePharm Corporation (the “Company”) received an aggregate principal amount of $964,910 pursuant to the borrowing arrangement (“Note”) with Harvest Small Business Finance, LLC (“HSBF”) and agreed to pay the principal amount plus interest at a 1% fixed interest rate per year, on the unpaid principal balance. No payments are due on the Note until November 16, 2020 (the “Deferment Period”). However, interest will continue to accrue during the Deferment Period. The Note will mature on May 16, 2022. The Note includes forgiveness provisions in accordance with the requirements of the Paycheck Protection Program, Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

The Company will file a copy of the Note as an exhibit to its Quarterly Report on Form 10-Q for the quarter ended June 30, 2020.


$MSLP


https://www.sec.gov/Archives/edgar/data/1415684/000165495420005878/mslp_8k.htm

[SLC-JD]

I wouldn't be surprised if Drexler is courting a buyer. I'd wager he realized (too late) that he couldn't cut enough fat to make the company profitable, and didn't have a plan for the kind of investment needed to drive an uptick in revenues. The big questions are what his threshold is for selling, and what the acquirer does.

Given that he's already milked MSLP for several million in the form of salary and interest, I can't help but wonder if he'd take any offer over $1.11 (granted, anything that low would prevent him from cashing in his contractual finder's fee).

[turokman]

Drexler converted $18 million of debt that he loaned the company to equity at $1.11 per share in Sept 2019:


On September 17, 2019, the Reporting Person delivered a notice to the Issuer and its independent directors of his election to convert, effective as of September 16, 2019 (the “Notice Date”), $18,000,000 of the amount outstanding (including all accrued and unpaid interest) under that certain Amended and Restated Convertible Secured Promissory Note dated as of November 8, 2017 (the “Note”), into shares of the Issuer’s Common Stock, at a conversion price of $1.11 per share, pursuant to the terms and conditions of the Note (the “Partial Conversion”). As of the Notice Date, the total amount outstanding under the Note (including principal and accrued and unpaid interest) was equal to $19,262,910.15. Pursuant to the terms of the Note, the Issuer has instructed the transfer agent for its shares to issue to the Reporting Person 16,216,216 shares of its Common Stock (the “Shares”) in respect of the Partial Conversion. The Note will remain outstanding in accordance with its terms in respect of all amounts in excess of the $18,000,000 that is subject to the Partial Conversion.

In my opinion, anything under $1.11 is a bargain as Drexler continues to show he will keep the company afloat and cut costs . I have a feeling financials are around the corner .

https://www.sec.gov/Archives/edgar/data/1415684/000165495419010895/mslp_sc13da.htm

$MSLP

[turokman]

Winston White was buying at 0.45 a share, over 600,000 shares, and now owns over 3.6 million shares

White Winston Select Asset Funds Series Fund MP-18, LLC 09/30/19 Purchase 626,826 of the Issuer’s Common Stock N/A (2)

(2)
The shares were purchased by the White Winston Reporting Person in an off-market transaction pursuant to a Share Transfer Agreement dated as of September 30, 2019. For purposes of the transaction, the value of the Common Stock was deemed to be $0.45 per share, the last reported sale price of the Common Stock on the date of the transaction.

https://www.sec.gov/Archives/edgar/data/1415684/000119312519288187/d817955dsc13da.htm

[turokman]

I do like that they have been reporting 8K’s lately . It makes me think that they are trying to be on top of their paperwork - why even bother if you are planning on a Bankruptcy, and your launching new products like the protein chips .

I think when financials are figured out they will report and there will be good news. Until then, Drexler is basically keeping the company afloat and paying bills with his own money .

The only recent loan drexler has made to the company has been a 3 million dollar line of credit on Oct 4, 2019 . The company is still afloat so it could not have burned more than 3 million dollars in the last 6 months .

https://www.sec.gov/Archives/edgar/data/1415684/000165495419011612/mslp_8k.htm

[SLC-JD]

I'll be damned. I had never even heard his name until after Drex appeared on the scene.

[MakeItRain88]

Anyone holding out hope for any financials today?

[turokman]

Brian Casutto was hired in June of 2014.

Brian Casutto was appointed to the Board of Directors as a director during July 2017. Mr. Casutto was appointed to the role of Executive Vice President of Sales
and Operations in July of 2015. Mr. Casutto joined MusclePharm in June of 2014 to lead product development and brand positioning of the Natural Series.

Pirate Pyatt was still fully in charge when Brian came onboard. Here is an 8K touting the 177 million in sales they did in 2014, filed almost a year after Casutto was there.
https://www.sec.gov/Archives/edgar/data/1415684/000119312515094019/d890326dex991.htm

Brian did work with Drexler at Country Life for quite some time before joining MusclePharm. I'm sure Brian reached out to Drexler and got him involved here. Drexler came in initially as an investor in the company, before taking over as Chairman and CEO.

These turnarounds take time, and I believe Drexler has positioned the company to run much leaner and should be GAAP profitable. Time will tell. $MSLP

[SLC-JD]

Casutto's not a Pyatt refuge - he came in after Pyatt split (as Madcow noted, he was Drexler's college roomie, and worked with Drex at Country Life).

[Carlgetsmoked]

You make a great point here and I fully agree there is even more huge upside once theproper financials are filed. There's no way a company with these kind of sales and branding should be where it's at. Once Drexler has all his cards on the table sky's the limit

[Stock_Dog]

I just thought it was interesting . I think you can look at it many ways. Below is what I found most interesting .


For purposes of this Agreement, the term "Change in Control" means the happening of any of the following events:

i. a tender offer (or series of related offers) shall be made and consummated for the ownership of 50% or more of the outstanding voting securities of the Company, unless as a result of such tender offer more than 50% of the outstanding voting securities of the surviving or resulting corporation shall be owned in the aggregate by the stockholders of the Company (as of the time immediately prior to the commencement of such offer), any employee benefit plan of the Company or its subsidiaries, and their affiliates;

ii. the Company shall be merged or consolidated with another corporation, unless as a result of such merger or consolidation more than 50% of the outstanding voting securities of the surviving or resulting corporation shall be owned in the aggregate by the stockholders of the Company (as of the time immediately prior to such transaction), any employee benefit plan of the Company or its subsidiaries, and their affiliates;

(iii) the Company shall sell substantially all of its assets to another corporation that is not wholly owned by the Company, unless as a result of such sale more than 50% of such assets shall be owned in the aggregate by the stockholders of the Company (as of the time


immediately prior to such transaction), any employee benefit plan of the Company or its subsidiaries and their affiliates; or

(iv) a person (as defined below) shall acquire 50% or more of the outstanding voting securities of the Company (whether directly, indirectly, beneficially or of record), unless as a result of such acquisition more than 50% of the outstanding voting securities of the surviving or resulting corporation shall be owned in the aggregate by the stockholders of the Company (as of the time immediately prior to the first acquisition of such securities by such person), any employee benefit plan of the Corporation or its subsidiaries, and their affiliates.

[turokman]

I got that Brian Cassuto , the only remnant left of the Brad Pyatt era, is gone.

Hopefully it means an acquisition is on the horizon. Go $MSLP

[turokman]

Nice owning a stock that isn’t dragged down by the overall market tantrums . Go $MSLP

[MakeItRain88]

Can you explain what you got from this? Terminated for cause?

[Stock_Dog]

https://www.lawinsider.com/contracts/3IdVekIKkDfpeDlibrmksh/musclepharm-corp/executive-employment-agreement/2017-05-01

[stupified777]

In Musclepharm's prime they were THE supplemebt company to compete with. Crazy hype aroubd the brand and akot of noise created by the loyal users. The only thing that is missing from this eqiatuon is leadership. If / when that happens this will turnaround quickly or the other scenario is that a potebtial buyer with those skills scoops this up. $70 million in sales is an attractive bolt on to a well established health and wellness company.