Superman187 heres the letter
15 April 2012
Roger Pondel / Robert Jaffe,
I am writing to you in regards to MUSCLEPHARM.
A few shareholders and myself are looking for some answers to some pretty simple questions. There is quite a strong following to MusclePharm, and these are some of the main questions to current shareholders, as well as prospective investors.
First and foremost: Why the authorization of 2.5 billion shares? This is a huge concern, as it can lead to further dilution and devaluation of current holdings. This is the most sought after answer pertaining to this stock. Would be investors notice all of the amazing things that MusclePharm is doing, then they research and see the authorized 2.5 billion shares and run for the hills.
Why the authorization of 2.5 billion shares? Will the remaining shares be used for dilution to pay for expenses even if the company is, ”operating cash flow positive”? Will these shares be bought back by the company?
MusclePharm has made a position to get to a higher exchange. Do they expect to do this through a natural increase in share price, or by performing a reverse split?
Have there been any attempts from other companies to buy MusclePharm? Whether there have been attempts or not, what is Mr. Pyatt’s, Mr. Gregory’s, and Mr. DeLuca’s stance on the idea of a future buyout?
Where will the funds for the future expansion into the United Kingdom, Middle East, and Latin America come from? Will they come from profits off of sales, or should we expect to see this paid for through further dilution of the common shares, using the authorized 2.5 billion shares?
Is MusclePharm going for FDA approval, in regards to the clinical trials of Assault? Also if they are in fact doing so, what is a conservative time frame for this?
According to a press release issued 11 April 2011 MusclePharm is pursuing Medicaid reimbursement for MuscleGel. Is MusclePharm still actively pursuing Medicaid reimbursement for MuscleGel? If so when can we expect an update informing the shareholders where the company stands in the approval process? It is understood that Dr. Ogden was brought on specifically for the, “venture into the clinical realm of therapeutic nutritional supplementation with our innovative whey protein product, MuscleGel”, stated by Cory Gregory, President of MusclePharm.
When will the MMA Elite brand, selling at Wal-Mart expand, out of the Las Vegas area, into Wal-Marts all over the country?
It has been noticed that, “Dicks Sporting Goods” was identified as a retailer for MusclePharm products in the most recent PR. When, and where should we expect to see this rollout happen?
Are the revenues from the MusclePharm Sportswear line reflected in the financial statements of MusclePharm, ticker symbol MSLP? Or are the revenues from the MusclePharm Sportswear line separate from the MSLP SEC filings? If it is separate from MSLP, is this a private, independently operated business?
Many shareholders, present and prospective, would greatly benefit from these seemingly simple questions being answered and brought into the public view. These answers will allow investors to come to properly informed conclusions, and base their investment decisions on factual information rather than speculation.
I would like to personally thank you for taking the time to address this letter, and I look forward to a relatively quick response, as all of these questions should already have answers. Thank you.
AI
