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Re: SLC-JD post# 80833

Tuesday, 05/23/2023 3:47:53 PM

Tuesday, May 23, 2023 3:47:53 PM

Post# of 80868
While I don't doubt SLC-JD your statement that Drexler likely missed an opportunity to avoid exacerbating MSLP's relationship (and his own dealings) with White Winston, I haven't found evidence of WW offering to buy out the investment and loans. Are you perhaps referring to the proposed settlement agreement, filed by WW as a 13D on December 5th, 2022?

Recall the executed settlement between Drexler and WW was to see Drexler pay $4M cash to WW plus offer a convertible note of $4.6M, plus >16M in warrants in exchange for a release on the library of litigation between the two entities. Empery filed a TRO shortly thereafter, and the settlement fizzled into the background as the Chapter 11 filing came into effect. You can connect the dots and see that WW is now in the same unanimous camp as the committee of unsecured creditors, Empery et. al. It is reasonable to speculate that whatever goodwill was existing between the parties leading up to the proposed settlement agreement has likely since evaporated.

Also, of note April's financial performance was released by the current MSLP management team.

Still not quite making money, but the legal expenses are the line item responsible for flipping this from profitable to unprofitable. A $151K net loss for the month of April, where legal fees comprise $260K of expenses. You can imagine the frustration of stakeholders trying to make a viable go of this company, when your monthly legal bills are north of a quarter million dollars and serving as an anchor that keeps this company unprofitable.

It shall be interested to see what happens between now and the July auction for MSLP assets. Empery is allowed to make a credit bid - they are likely deciding internally that even if they do exercise their credit bid, do they really want to end up owning this company?