Muscle Pharm Corporation (MSLPQ)

[newmex]

I read somewhere, and believe you too can find with a little effort, that Capstone required a $2.5m cash payment from MSLP for capital improvements to their Tennessee manufacturing facility and minimum order requirements per quarter due to the fact MSLP already was operating their main distribution warehouse right near the small Capstone facility. This was an MSLP request to benefit logistics for existing MSLP distribution warehouse.

Now with MSLP not meeting contractually obligated minimums, Capstone no longer needs the Tennessee plant as the Utah plant is being expanded currently with a new capital infusion and can service the other accounts.

Capstone is owned by HIG Capital, with $19 BILLION under management. HIG just bought Quicken 8 weeks ago for more than $500m. Ever heard of Quicken?

Regarding the $13m not delivered, that was Ryan continuing to submit purchase orders for $13m of new product after not having paid for $22.5m of outstanding invoices that were delinquent. Capstone had every right to stop shipments until a satisfactory payment arrangement could be made.

MSLP defaulted on their contractually obligated requirements.