12 March 2012 – 2:45pm To whom it may concern: Brad Pyatt, Cory Gregory, Jeremy Deluca, John Bluher
I am writing here so I do not disrespect your facebook page with investor/shareholder relations, as I know it will just be deleted anyway. Also, please let me state that I am in no way trying to disrespect the company or anyone that is an employee.
I am writing to you because there are growing concerns about the future of the company among the common shareholders. This concern is not necessarily in your ability to sell your product, but mainly in the continued issuance of shares, and the constant dilution. All of us have been watching the continued increase in sales, from $80,739 in 2008, $1,016,000 in 2009, $4,076,764 in 2010, to an astonishing $21,000,000 in 2011, making more in one quarter (qtr4-11) than all previous YEARS combined. That is an amazing track record, and we as shareholders cannot be more pleased with this.
However the questions remain, 1) When will the spending be cut back? 2) When will they stop diluting into positive news? (Upon release of 4th quarter results-2011 the stock began a dramatic rise that day, I honestly could not refresh my trading account fast enough to keep up with the climb in the price per share) 3) Why do they need to bonus themselves common stock shares, when they already control 51% of the votes with the Series B Preferred shares, when they can just bonus themselves money? 4) What is the potential for a buyout, would that be something MP is for or against? (There are multiple rumors going on about an Under Armour buyout) 5) Did you sell a material asset (apparel line) belonging to the company without any notification to the shareholders? If there is notification please provide a link, or filing specifically stating this. 6) What specific reason did you retain the services of an investment bank?
The fact is that shareholder opinion/trust is at an all time low. We as shareholders invested in YOUR, now OUR company to turn a profit just as you have. We sit back and average down and strap in for the long haul, while the employees of this company purchase expensive toys, take vacations, and live the good life. Yes you are doing great and deserve praise, and a good paycheck, however you are doing it on the backs of shareholders with poor communication. Your name among the common investors is being tarnished and you are driving people away. We want to enjoy the great success of this company just as you have with a climb in the common stock. There are many investors out there willing to invest more money if they see an upward trend in this stock. I just read this morning people are starting to refer to this as a scam. This is very unsettling. As common shareholders we are asking you to get your financial house in order, so that we may ALL profit from this success. I enjoy your products and I know that they work, but everyone is getting something out of this deal except the shareholders. So I am asking you, Muscle Pharm, to give us some hope for the future of this company, and answer all or some of the questions I have put forth in this letter, as I will educate the boards as to what your response is.
