Muscle Pharm Corporation (MSLPQ)

[Aspenots]

The lender isn't stupid, re-read the 8-K, there's provisions that if MSLP defaults, the lender is issued shares. Presumably, this would occur after a reverse split with a lower float so if MSLP did default and the lender wanted their money back...good bye minimum stock price requirement. In fact (can't remember if it's the $3million funding or the $750k loan), the lender can go straight to the transfer agent and ask for the shares and they're legally obligated to issue them under the contract, MSLP would have no say in it. It's dirty terms, but there's also terms in one of the 8-k's that says no exec or director's pay will increase unless stipulated in a current contract, which the financiers have reviewed. That's a good sign to me. No more arbitrary pay raises. Ultimately, you're right, it is a good sign that this company is willing to take the risk with $3.75 million in financing, even if it's backed by shares, but just wanted to point out they're not as confidence as they seem at first glance.