Replies to post #79772 on Muscle Pharm Corporation (MSLPQ)

[Madcowelixir]

Amerop letter of interest expires on Nov 3

Ryan is not obligated to do anything on his notes until Nov 7

On Nov 4th, Amerop's letter doesn't exist.

Buck Wessel is an idiot and just realized it 30 days ago.

[Madcowelixir]

A few key metrics

MSLP is basically just 2 products.

Combat Protein Powder makes up 35%-55% of total world-wide sales just in the Costco retail channel

Combat Crunch Protein Bars "made" up 35% of world-wide total sales until the Bakery Barn fiasco. We will hear in Q3 earnings release how far this will fall

Total domestic sales (USA) are now down to $14m a Q and trending below $50m a year for 2018 forecast.

With the Bakery Barn fiasco and massive customer rejection we have seen on retail sites (Top 50 list free-fall and customer review revolt), MSLP is toast.

CEO Brad covered the MSLP operating losses by greatly growing revenue that allowed sufficient cash flow to keep the doors open.

CEO Ryan has spiked sales down and now operating losses are only funded with the subprime secured loans on hard assets from Debtor in Possession Finance Companies like CrossRoads and Prestige that specialize in bankruptcy funding for liquidation.

As of the emergency CrossRoads secured loan on Inventory, there are no more assets left upon which to hock.

Everything is either been sold or pledged as collateral.

Amerop is not offering working capital. Amerop is only expressing interest in Ryan's options (controlling interest) as it sees it's $4.5m unsecured investment is just toilet paper.

[SLC-JD]

You are incorrect. Let's review (my comments in italics, everything else is lifted from the Amerop letter):

Amerop will purchase $18 million of newly issued shares of common stock, par value $0.001 per share, of the Company (the “Company Common Stock”) from the Company at a price of $1.96 per share, resulting in Amerop purchasing 9,183,675 shares of Company Common Stock. Amerop does not require a financing condition or contingency.

Amerop is buying stock, not Drexler's debt, and is prepared to do so on short notice, without waiting for a loan or other contingencies (making a pre Nov. 7 close entirely possible). Removal of this overhead prior to the payment deadline also largely removes (or at least delays)
the likelihood of foreclosure/bankruptcy

All of the proceeds of such purchase of Company Common Stock will be used to repurchase and retire immediately at closing the Notes and all rights related thereto.

All of Drexler's notes, his conversion rights, and his rights to continued interest payments will extinguish immediately.

Amerop will have the option to purchase from the Company up to an aggregate of 7 million additional shares of Company Common Stock at any time over the period of 18 months following the closing, at Amerop’s sole option, at a price equal to the 60-day volume weighted average on the business day prior to such option being exercised by Amerop. Such option may be exercised up to 7 times (in no less than 1 million share increments) during such applicable 18-month period. The proceeds resulting from Amerop exercising such option will further strengthen the Company’s balance sheet and will allow the Company to execute its growth initiatives.

While not a guarantee, Amerop at least shows interest in funding continued operations after retiring Drexler's debt

In addition to removing the excessive financial burden placed on the Company by the Notes, Amerop is proposing that the Company take the following initial steps to address the significant challenges that the Company is facing:

Follow the governance guidelines set forth in the Form of Corporate Governance Guidelines of the Company, adopted by the Board on May 8, 2015.
- self explanatory

Enter into an executive recruitment search for senior management with relevant industry experience who are capable of driving value for all stockholders of the Company.
- Get rid of Drexler and his syccophants

Establish a stable, long-term capital structure that will be conducive to increasing Company stockholder value and providing a path to long-term solvency.
put an end to "arms length" hard money loans

Provide transparency and future guidance to the market to bolster Company stockholder confidence and to provide accountability.

And that.

I get that this doesn't fit into the tinfoil hat narrative, and it is all speculative at this point. However, ignoring what is being proposed to further promote unfounded conspiracies is irresponsible.