Muscle Pharm Corporation (MSLPQ)

[Madcowelixir]

Buyout?

One day after Q1 reporting and 2 shares trade. Yep, Total trading value of $1.50....that is 15 shiny dimes for an entire trading session immediately after Quarterly Reporting. This is dead. Literally....

Accounts Payable delta went up $3m+ this Q and yet Accounts Receivable stayed even. MSLP has stopped paying suppliers AGAIN as they only have $300K left in working capital and almost $8m outstanding in borrowings from Prestige and Crossroads at shylock terms.

Drexler can't sell as he has invested over $26m in cash personally ($8m original open market for 1.4m shares and $18m in cash infusions convertibles to cover operating losses) and the company is still losing $1m a month, $3m a quarter.

Remember this despite stealing over $11m from former supplier Capstone when MSLP refused to pay the $22.5m in outstanding AP to the manufacturer and was able to settle for $11m. MSLP is posting real cash losses of $15m-$20m annually and has borrowed $26m since Ryan displaced CEO Brad in short term borrowings @ 12%-20% interest to cover the operating losses. MSLP accrued over $1.3m in interest in Q1 in addition to EBITDA losses

Remember Q1 is always the biggest revenue Q as New Year Resolutions for fitness drive inventory load. Historically, MSLP Q1 rev doubles over Q4 yet this year....it's flat.

MSLP owes Manchester City Footy another $1m payment for the legal settlement in less than 60 days.

There will be no buyout as Wynnefield owns 10% of the total shares and they are in at ~$5 a share after already realizing over -$9m in losses on previous sales.

Amerop owns ~17% of the total shares and Buck is in at over $2 a share.

Ryan is in over $5 a share in cash and controls well over 50% of the diluted.

The company has ~$50m in debt and no assets unpledged as Ryan has borrowed against everything but the wresting mats.

It will go into bankruptcy and Ryan will foreclose on the notes in a take UNDER not over. The bulls here have no financial acumen nor sophistication. Neither does the trust fund baby CEO.