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Re: JimmyJams post# 74609

Tuesday, 04/14/2015 10:04:12 PM

Tuesday, April 14, 2015 10:04:12 PM

Post# of 80868
Warrants give Musclepharm right to buy 20% of Capstone Nutrition for a set price guaranteed by HIG Capital. what if the set price corresponds to market cap $200 million? pretty much these warrants will be worthless if company is not worth $200 million...or fairly priced if Capstone is worth the $200 million.

Could be that Musclepharm received some warrants worth something, that correspond to a market cap of $100 million and Capstone Nutrition is worth more....meaning that Musclepharm can buy 20% of company for $20 million.

Probably this is what we got....HIG Capital trying with a carrot to get a deal.

HIG needs a little more than a carrot, it needs a peeler to cut down the price to where it should be, and then strike a deal with Musclepharm. Without Musclepharm, Capstone Nutrition may not be worth so much.