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The PR clearly said "completed" the first step by hiring the auditor and named the auditor. The auditor has verbally and in written form said he was contacted and not retained. The PR is false and misleading.
What they could have issue with is non-registered companies (OTC) selling or gifting shares to non-sophisticated investors. What exemption do they have on file?
Several messages sent to Howard both through his attorney, the company and his personal AOL email. Never a response. We told him that we had no choice but to sue him and PHAR, make this public and contact the SEC. We sent him his email in which he claimed the debt was transferred and asked for proof that that was the case before coming public. We have worked diligently trying to communicate with Howard and his people for months.
If he indeed got a court to transfer this debt I am sure it would be a part of the audit and reports to the SEC. We can find no Taber/Howard/PHAR lawsuit. We can not find a registration for the shares Howard agreed to issue. No third parties were mentioned in the PR about the sponsorship. No third parties and the contract claims to be non-transferable by either party.
Why not supply us the facts? PHAR got the advertising, they signed the contract and they are claiming some random third party that we do not know now owes their debt. That is either true or false and we seek the truth. Howard is the only person who signed for PHAR. He is the only person to ever bring up "Taber". We were never notified of a debt transfer or given any contact information on how to get paid for the services rendered.
If I did not owe someone after I contractually agreed to pay them and press released the event I would make sure that the person owed, the person who provided me the value, knew how to collect his money. Especially if I paid.
Howard refuses to give us the information. So we go to court with a contract signed by PHAR. We have issue with PHAR because that is all we know.
Just like correcting the auditor press release. As of now that stands as a misleading PR. The company may have hired a different firm just like there may be a "Taber". However the company has an obligation to inform us with the same amount or more effort of these corrections just as they did of the event. If it was worthy of a PR then the corrected information is worthy too.
If they have a new auditing firm and an audit near complete and anyone sold shares based on due diligence that would prove the reported auditor was not hired would have a legitimate claim against PHAR.
Communication is free and easy.
Cash and stock was the agreement. Yet nothing has been paid and Howard shifts the blame but HE signed the contract and has showed us no "court ruling" with Taber over our contract. You would think that if he had that he would send it. Instead he had an attorney call us and ask us to take a lesser amount. We agreed to his proposed settlement and prepared the invoice as requested. They AGAIN decided they would not pay and went radio silent. After THEY asked for the invoice to pay the bill THEY claim is not owed by them. Unreal!
Henderson, McSweeney and who knows how many other MMA athletes have been stiffed by this company? They surely got the placement they paid for, maybe not the results, but the placement.
They refuse to pay athletes that get injured promoting their pain reliever product. Pretty bad business.
It is legit and sent from Howard
---------- Forwarded message ----------
From: <Howardphykitt@aol.com>
Date: Tue, Oct 11, 2011 at 2:45 PM
Subject: Re: james mc sweeney contract agreement, legal action
To: andrewspencer340@gmail.com
The court says that Taber took responsibility to pay. Why do you come after me. It is in writing in the court documents that Taber will pay. never mind the original contract. And yes, he did threaten me and I am taking legal action.
Howard Phykitt
President, CEO
PharmStar Pharmaceuticals, Inc.
.
3914 Airport Drive
Wilson, NC 27896
Phone: 919 794 7000
Direct: 919 794 7001
Fax: 919 794 7003
Web. www.pharmstarinc.com
Web.
www.aquaprin.com
In a message dated 10/11/2011 4:37:05 P.M. Eastern Daylight Time, andrewspencer340@gmail.com writes:
attention Howard Phykitt
My client Mr james McSweeney
has a signed contract with your signature on the legal document, therefor if payment is made by the 10/14/2011 he has instructed me to continue legal action against you, and Pharmstar. My client has recording of the conversations that taken place with you and the 2nd conversation which was a conference call between you and Mr taber. I have listened to the recordings at no point does Mr McSweeney threaten you and we will be happy to play this to the court room when legal proceedings begin. My client also has phone records of the amount of times he has reached out to you to have this matter rectified and also recordings of all messages left for you.
Andrew Spencer
On Mon, Oct 10, 2011 at 1:14 PM, <
Howardphykitt@aol.com> wrote:
Dear Sir;
PharmStar signed this agreement under pressure from Mr. Adi Elfenbein of OTC Capital Partners. Mr. Elfenbein agreed to pay the money and stock to Mr. Sweeney. As a result of another lawsuit and settlement between Mr. Elfenbein and a Mr. Taber of Greenland Capital, Taber agreed to take over the responsibility of the payments to Mr. Sweeney. This is a signed agreement, which is a matter of court record. Therefore, I think that you are going after the wrong person. Mr. Sweeney threatened to come after me at my office for the payment. I currently feel physically threatened by him and may have to take legal action against him.
Howard Phykitt
President, CEO
PharmStar Pharmaceuticals, Inc.
.
3914 Airport Drive
Wilson, NC 27896
Phone:
919 794 7000
Direct: 919 794 7001
Fax: 919 794 7003
Web.
www.pharmstarinc.com
Web. www.aquaprin.com
In a message dated 10/6/2011 9:44:35 P.M. Eastern Daylight Time, andrewspencer340@gmail.com writes:
>> President, CEO
>> PharmStar Pharmaceuticals, Inc.
>> 3914 Airport Drive
>> Wilson, NC 27896
>> Phone: 919 794 7000
>> Direct: 919 794 7001
> 919 794 7003
>
www.pharmstarinc.com
> www.aquaprin.com
Attention: Howard Phykitt,
Per our contract dated (August 4th 2011), Mr. James McSweeney, was promised a payment of $5,000, and $8,000 in shares to be paid within 30 days after MMA fight, in Melbourne, Australia on (August 20th 2011). As of today, October 6, 2011, no payment has been received. Per the contract that was agreed upon, . As of today amount due is ($5,000)$8,000in stock. The original due date was (september 19th 2011). Pharmstar Pharmaceuticals, Inc owes Mr. James McSweeney a total of ($5000)$8,000 in stock based on contact.
Several attempts have been made to collect debt. Payment needs to made immediately. If Mr. James McSweeney does not receive the agreed upon $5,000 plus $8,000 in stock within 5 business days of this receipt of this letter. Mr. James McSweeney will pursue legal action against PharmStar Pharmeceuticals. Located at 3914 Airport drive Wilson, North carolina 27896.
Please consider this email a last and final attempt to collect monies owed to Mr. James McSweeney based upon the contextual agreement made on (August 4th 2011)
I look forward your response,
Yes that is Howards email here is another from Howard that admits he signs contracts by force
Howardphykitt@aol.com> wrote:
Dear Sir;
PharmStar signed this agreement under pressure from Mr. Adi Elfenbein of OTC Capital Partners. Mr. Elfenbein agreed to pay the money and stock to Mr. Sweeney. As a result of another lawsuit and settlement between Mr. Elfenbein and a Mr. Taber of Greenland Capital, Taber agreed to take over the responsibility of the payments to Mr. Sweeney. This is a signed agreement, which is a matter of court record. Therefore, I think that you are going after the wrong person. Mr. Sweeney threatened to come after me at my office for the payment. I currently feel physically threatened by him and may have to take legal action against him.
Howard Phykitt
President, CEO
PharmStar Pharmaceuticals, Inc.
.
3914 Airport Drive
Wilson, NC 27896
Phone:
919 794 7000
Direct: 919 794 7001
Fax: 919 794 7003
Web.
www.pharmstarinc.com
Web. www.aquaprin.com
So fraud and selective disclosure. Win Win for the SEC
Howard has a history of letting people run his business or force him into transactions. Unfortunatly for his family the SEC will hold him responsible.
He doesn't pay his bills, he doesn't return emails. he lies.... Sounds like a winner.
LOL so you are saying an insider thinks it is a sell. LMAO
According to the CEO is was a Mr. Taber who was the third party.
Here is the latest update on Pharmstar's non payment of UFC and Mixed Martial Arts Athletes. This is all going to be public soon enough. One athlete has retained counsel and I assume others will follow. I have seem emails from Pharmstar CEO acknowledging the debt, he signed the contract and communicated directly with the athletes. He then (after he never paid) shifted the blame to some "straw man" who was using MMA to promote the Pharmstar stock. The CEO claims that he paid the third party and the third party was supposed to pay the athlete. The payments were supposed to be a combination of cash and stock. The contract was entered into with Pharmstar signed by its CEO.
One athlete has contacted the SEC Enforcement division as he cannot pay his rent and surely is not qualified to be receiving restricted stock as a "sophisticated investor" so Pharmstar likely violated SEC rules by entering into these agreements. There was a significant promotion of these sponsorships by a third party (even on these boards here at Ihub). The CEO has admitted in writing that he had expected a third party to pay the athletes and issue the shares (not legal since it was never disclosed). The CEO is likely lying on his audited financials (if they are truthful about up listing) if he is not acknowledging this expense and debt.
I have not done much more homework on PHAR as the actions listed above should tell you all you need to know. A CEO that will allow humans to have pain inflicted upon them for promotion of his pain reliving medicine and then not pay those humans for doing their part, is not a CEO I would invest in or ingest anything from.
I wonder if Pharmstar is making a pain reliever for the athletes that it STIFFED. It is painful to train MMA and even more painful to compete. The biggest pain is when the CEO refuses to pay you the stock and cash his company owes.
Yeah you should trust these guys. I mean if they allow professional athletes to go unpaid and all I am sure you can trust them to ingest their product or trust the PR.
You asked about the information. The athlete is taking it up with the company and they refuse to respond. The athlete took it up with IR and they failed to respond. We will be publicly sharing this information until your buddy Howard does the right thing. We will be everywhere until they respond to the athlete.
They can't use the sport and it's athletes like this. We have a huge following and the athlete will be making public statements shortly.
We are in the industry and have connections.
The CEO's email as given by the athlete for verification (CEO has not responded to us) howard phykitt
howardphykitt@XXX.com
Cell is the ceo number 919 79X 7XX1
I have added the XX
From the contract dated August 30th 2011:
Compensation: As compensation for the Services provided by Company at Event, PharmStar
shall pay Company
within thirty (30) days
$5000 Cash and $8,000 restricted Stock
of the Fight
We asked to see the emails and they are from Mr. Phykitt himself thanking the athlete and assuring him that payment is forthcoming. The emails continue with promises that are never kept then they stop.
If the service was not provided why the promise to pay?
The CEO himself made this promise.
If the service was not provided as described why would the CEO promise to pay?
Facts seem like the CEO does not keep his promises, to me that is a very bad thing for a CEO of a pseudo public company.
If they are not paying their bills how are they paying an auditor and what would the audit reveal? Other unpaid bills or issued shares?
PHAR refusing to pay it's sponsored athletes. We just got this news and are digging a bit deeper to see how many athletes have gone unpaid.
We have seen the contract and emails from PHAR CEO (Mr. Phykitt) assuring this professional athlete would be paid. So far no payment has been made and the CEO is now ignoring the athlete. The athlete already performed his services. We have already seen the company try to tout the stock by using it's affiliations with these athletes. If it si worth bragging about on the boards you would think it would be worth paying your bills.
This athlete was granted shares and cash as part of his deal. He is preparing a lawsuit as we speak. So Mr. Phykitt is not only not delivering on promises made for services rendered but he is also lying to a shareholder.
I do not know a lot about this stock but if your CEO is not paying for services rendered and lying to shareholders he created I do not have a lot of hope for this company.
I worked for a company that was destroyed by Hicks and his tricks. They are hardly an Institutional Investor. They actually are the pioneers of the convertible death spiral investments. Google Hicks
http://www.forbes.com/2009/10/07/sec-southridge-capital-business-wall-street-southridge.html
http://dealbreaker.com/2010/10/southridge-capital-management-founder-charged-with-fraud-though-he-may-not-know-it-yet/
They simply pay the UFC for placing their logo on the mats and they pay the athletes to place the logo on their shorts. They are non exclusive which means someone can still come in and buy exclusivity and MP would be out. They are not selling anything to the UFC. The UFC is the benefactor in the transaction. MusclePharm will need to leverage this sponsorship and endorsement for it to affect the shareholders or price. Right now it is a huge expenditure with little to no measured results.
The S1 and previous shelf registration pay the inflated salaries of the CEO Two Presidents, COO etc. They know they can't sell.
Let us not trust every word that flys off that PR. A quick call to Michael Mersch or his team and you will find out that it is NOT exclusive. If other supplement companies want to be in the UFC they jsut have to pay a fee. Muscle Pharm paid the fee but did not buy out the exclusivity.
glad you like it you paid for it
MusclePharm paid a sponsorship tax to sponsor StrikeForce fighters and then did not. Which means they paid to play and then decided not to play. It is not cutting back it is not being able to afford it. MusclePharm has very little activation around its events. Look at mmaweekly.com and how SixStar is doing it. They did not have to pay for any rights to advertise just the ads.
Well here is a more realistic article on Muscle Pharm and this site looses mroe traffic in a day then MMABay gets in a month. You would think they could find a good PR firm.
http://www.bloodyelbow.com/2011/8/2/2339563/ufc-musclepharm-mma-sponsor-wec-mma-news-michael-vick
I think if they announced that the White House was making every american take MP products daily there still would more then enough shares hitting the market to keep it from achieving any real valuation.
Plus I still do not see how this:
http://www.walmart.com/ip/MMA-Elite-Men-s-Graphic-Fighter-Shorts/15608638
Competes with this:
http://www.walmart.com/ip/Six-Star-Muscle-Scientifically-Engineered-Anabolic-Protein-Whey-Protein-2-Lb/10533112
I guess if management is not diluting like crazy (as alleged) then neither does the street.
With BSN out of the UFC as the official supplement sponsor how will Brad and his two Presidents spend your money to secure this space? How many shares does it take to get into the 10 million dollar range?
Since they currently have no activation on the current branding they probably would drop the ball.
What is one of the majors comes in and takes BSN's spot? They will surely make sure MP is pushed out.
Where did all the pumps go from the last PR? Where si the last PR I can only find it on PR Newswire. Maybe the next PR they will put on the ass of a fighter so more people see it.
So a company with the money to afford said "Branding" has left the sport and Muscle Pharm with no money and no market share can do what they could not? This is not branding. It is at best paid ambush marketing and the consumer watching is not the target consumer. Rather the consumer is the 500 members of the avg mma gym in your town and athletes that want to be like the pros. They know the athletes are not using this stuff. Just like they know no one drinks Xyience.
The facts are clear they put their logos on things. The UFC does not endorse the products, I have not seen one UFC or Strikeforce level MMA athlete endorse the product outside of a paid endorsements. Product is jsut a wee better than management and that isn't saying much.
Shocking.... I mean what company lies about products people ingest? I am going to put a fancy website together about my NEW Ocean Front development in Arizona. I know Rocket is in who else is coming with me?
JoePa,
Please try to keep the facts straight. Sponsoring a fighter works like this. manager calls Muscle Pharm and strikes a deal for a spot on the fighter. This cost the MSLP shareholder money. The logo goes on the shorts and there is no endorsement of the product. MSLP is known to mis represent the facts. In the companies first national commercial they had a UFC logo and MMA Athletes that DO NOT use the product claiming that it was endorsed.
They are spending shareholder money building football fields, mma gyms and getting to hag out with the athletes that ignored the management without your money.
They claim UFC Fighters endorse the product. Call Zuffa and ask them if there is anything called a UFC Fighter? They frown on the use of that word and it is disrespectful to all the millions that compete in Mixed Martial Arts not the UFC.
Last but not least they pay Zuffa for the right to sponsor these athletes. Six figures just for the right. Another six figures for the right to Strikeforce (no UFC Fighters in that organization).
Not to mention the millions spent to be on the mat of these two events. Why would a 100 million dollar company give up this valuable real estate (BSN) and what makes you think an under capitalized pig like this could figure it out.
The management team is in the midst of a Bromance with the sport and they are being fleeced in the process. It would matter is it wasn't other peoples money.
unfortunately they have compensated fighters with shares. Likely an overhang issues you have not seen yet.
Right you can bet that Wal-Mart will need the best price so you will see the sales soften elsewhere. Walmart receivables are very difficult to factor because they blow back on the manufacturer. Price protection will really hurt the non-existent bottom line.
I found the new soundtrack for this stock
100K for the year to sponsor the fighters and then they have to make the deals with the fighters (which was likely cheap since Zuffa came up with the sponsorship fee) and then of course pay Zuffa for the ring.
The UFC should be sending you shareholders thank you notes.
Let's see we have no money and our share price is falling faster then our credibility. What do we do?
Brad "I know I still want to hang out with MMA fighters. Those guys make my personal Facebook page look great. They are an old mand botox".
DeLuca "We need to make money to spend money"
Senior President Junior Experience "We aint killing the print media budget. I just got on the freaking cover. You know how good that looks in my basement?"
Solution?
Lets go spend 6 figures on the right to market and spend 4 million dollars. No reason not too. We have not made any profits but it is not our money. I mean in the grand scheme of things what does it cost us to advertise in these magazines or spend six figures for the net value of zero ROI? NOTHING. If these dumb ass ideas work or Jeremy can somehow sell this pig to another farmer they win. It was always OPM and a me too product ran by guys that view failure as an option and on your dime.
Strikeforce. This was going to be the Senior President's new frontier for marketing. Yet Zuffa slapped a Sponsorship Tax on Strikeforce. 100K a year to put your name on a fighter. The logos on the mat just went up in price too.
If MP is on any fighters or the mat then you know where your dilution is coming from. They will now have two sponsor fees paid (over 300K just for the right to market) and what ever they pay for the spot on the mats and athletes. Some athletes are paid in shares which also increases the overhead and unsophisticated overhead at that.
I do think Brad will fly this company into the ground before he gave the reigns to someone more capable. Just like creating a Senior President position for the guy less qualified than the President.
They seem to have a grasp on their consumers. The management team are complete narcissistic idiots and the consumer is not far behind.
They have used athletes in commercials that do not use or endorse the products.
They lie about the product being on the shelfs in GNC
They Dilute like tht is the reason they were hired
They have forgot that they work for the shareholders.
A company that can't make a profit and has minimal sales has NO business spending all of this marketing money.
I am not a SEC regulator and I do not play one on TV but that sure seems like inside info. I guess you could post the email stream and settle it. I think the shareholders need real info. Not selected tidbits and paid promoters saying we are going to be okay. They are spending too much for my taste.
Are you aware that anything he told you is public information. It is called Regulation FD and if he told you something that he has not shared with everyone that is illegal.
"I got a response directly from Brad Pyatt today (actually 3 responses back and forth) after I had multiple questions regarding all the nonsense the bashers keep posting (which is completely inaccurate). Without saying anything more, all I can say is that things look extremely positive for multiple reasons in this growth phase, and there's alot more I really wish I could post here."
Very true and the FTC is doing a non-public look into the transaction. The only thing is that Zuffa's legal team is handeling the affairs of Strikeforce. Also any money pad to the UFC for it's sponsorship program does not get to be shared with the NEW sponsorship program that is in place. If MSLP wants to sponsor strikeforce fighters they are looking at mid six figures for the rights. Plus what they pay the fighters.
One big issue I have is that they issue shares to fighters. Most fighters do not have brokerage accounts and management teams that know how to sell. You essentially have a very unsophisticated overhang.
I am still on the sideline waiting to see something.
BSN spent 16 million over the term. MSLP can't afford it. They are looking at Strikeforce.
Really? Print media is dead. how much of an ad spend did they make to get the cover? The demographic they need to reach is not reading magazines. Unless this magazine is on Barnes and Nobles Knook or online who is going to really give a rats a$$. PUMP PUMP but every pump cost shareholders money and dilution.