Muscle Pharm Corporation (MSLPQ)

[Aspenots]

The warrants are at 95% of the previous 5 trading days, which are for an additional 50 million shares. Another agreement was that 100 million shares were to be sold at $.01 to a group of investors, which is part of an agreement that brought Groussman and Honig onboard as "consultants". Part of the consulting agreement is that they (not sure if this is each or in total) will own 4.2% of the company, which doesn't necessarily require a R/S to happen, but my guess is that the consultants are strongly suggesting it. However, the 100 million shares that were just sold for $1million, have no dilution protection, but the warrants do have protection should the the company sell or issue shares below $.01 at a later date whether that be through warrants or direct dilution.
At least this is all my understanding of it all. The good thing I'm taking out of this is that the group of investors that put $1 million into it to start has no dilution protection just like the rest of us, other than being sold shares at a discount. The warrants do give some additional power to average down, however.

Edit: I just reread the 8k and it looks like I'm incorrect, the purchase agreement does offer dilution protection for the 100 million shares purchased. No bueno.