Muscle Pharm Corporation (MSLPQ)

[SLC-JD]

Close - the injunction is temporary, pending a future hearing. Drex could conceivably be freed up up at a later date, and the parade of horrible sin the initial pleading could be realized.

It appears thus far that Buck still plans on buying equity (which would be dilutitave, but assuming Buck’s original proposal [~$1.89] stands, not nearly as dilutative as Drex converting under the terms of the revised note), the proceeds of which will pay off the convertible. However, any such action would be determined by a court appointed receiver, should the judge so rule.

The question at present is who this mystery partner proposing to buy Drex’s Debt is, what the terms are, and in the face of the derivative action, if the proposed deal is sufficiently meritorious to pass a business judgement smell test and circumvent the appointment of a receiver.

Not enough beta to even begin to guess at a final outcome yet, but it’s worth noting that the theory behind the TRO motion was deemed sufficiently likely to prevail that the motion was granted (far from definitive, but it is an initial indication of the court’s view of the argument).