Muscle Pharm Corporation (MSLPQ)

[Odessa99]

I posted this here on 8/30/2013....

Imagine the following hypothetical scenario. A supplement company, which has already expressed their intention to produce a superior energy shot (for distribution via convenience stores) is shopping around for a manufacturer of said energy shots. In the past, manufacturers have only allowed for small profit margins, because the supplement company needed the manufacturers more than the manufacturers needed the supplement company. So the supplement company decides to use a slightly different approach.

The supplement company, harnessing the access to their new powerful and influential contacts, seeks the following situation. Locate a manufacturer meeting the following criteria:

- Facilities with idle capacity
- Knowledge and ability to produce liquid dietary supplements
- In need of current funding
- Big enough to fulfill the manufacturing requirements, yet small enough where the stock could appreciate meaningfully based upon a contract manufacturing arrangement with one new, large client

Strategy: Offer the needed funding to a manufacturer, in exchange for a cost effective manufacturing deal of the planned energy shots, along with an opportunity to participate in the any upside move in the manufacturers equity value (via stock warrants). The deal would benefit the manufacturer, because they could fill current idle capacity at their facilities, obtain needed funding, and have their stock price appreciate due to increased public exposure along with the anticipated rapid growth in their contract manufacturing business.

It's one possible explanation for why Muscle Pharm is on the lending side of a deal at this point in time. As always, simply my opinion.

link:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=91583894

MSLP