After further research I feel even better about the recent news on Friday. I must admit, after reading a number of blogs I too became very skeptical of the agreement but there are two things that make me think that there are very big things on the horizon.
1. Pursuant to the Equity Purchase Agreement, the Investor shall commit to purchase up to Ten Million Dollars ($10,000,000) of the Company’s common stock over the course of twenty-four (24) months commencing on the effective date of the initial Registration Statement (as defined below), covering the Registrable Securities (as defined below) pursuant to the Equity Purchase Agreement
Notes....what this tells me is that there will most definitely be large amounts of stock bought up possibly eliminating some of the dilution that is keeping the stock price low. My guess is that the purchases will start rather soon due to the low current prices of the stock. They are also here to make money just like the rest of us investors.
2. In connection with the Equity Purchase Agreement, the Company (i) issued to the Investor 500,000 five-year warrants to purchase shares of the Company’s common stock at an exercise price equal to 120% of the average of the closing prices of the common stock during the twenty trading days during which the common stock has traded prior to the exercise date.
Notes....what this tells me is that this company is confident that this stock price will increase, most likely by a large margin. The five year warrant locks in the stock price at the time of the exercise date...from now to 2016 if the stock goes up they can purchase the stock for very cheap and resell it at market.
Just some of my own thoughts but I feel really good about where my money is. Buying as many shares as possible until the market tightens up. Only time will tell....GO MSLP!!!