Muscle Pharm Corporation (MSLPQ)

[Aspenots]

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8224843

Summary: Southridge, LLC, what looks to be a financial services firm that's based in CT, which probably means it's really a hedgefund, has come up with a deal with MSLP to buy up to $10million common shares over the next 24 months and was issued 140 class C shares for $100000 and a waiving of $90000 in fees (a $50000 discount for Southridge as class C shares are defined as $1000 each).

My interpretation: This is a HUGE step forward for MSLP to get what is basically an institutional investor on board. Just looking at the board of Southridge (http://www.southridgellc.com/mgt_team.html) there are 2 CFA's (not an easy designation to get) and 3 CPA's (one is a CFA also). You have a management team with those letters following their name and you can bet their know what they're doing when it comes to financials. To me this means MSLP's financials are heading in a very very good direction if you get an investor like Southridge. This also means, MSLP can go to Southridge first if they need to sell some shares instead of selling the shares on the open market, which means dilution doesn't hit us as hard assuming Southridge doesn't turn around and sell their shares. In addition, at the current share price, $10,000,000 is 588 million shares or so, which would put us over the authorized amount. You can interpret this as Southridge/MSLP are expecting the stock price to go higher so the A/S doesn't have to be raised to accommodate this or as they both realize more funds might be needed if the share price keeps dropping.

Bad news: I'm not exactly sure how good at investing Southridge really is, looking at some of their previous investments, they're not doing so hot. But to be able to commit millions and millions to startups, that means Southridge's investor's trust the management.

I'm all for this deal right now. I'm just hoping I'm not missing something in my interpretation of it all.