MusclePharm: All Show, No Strength
Value Vista UK • 73 Comments
Value Vista UK • 73 Comments
Why Is MusclePharm Doing So Badly? Here's My Best Guess
Paulo Santos • 269 Comments
Paulo Santos • 269 Comments
Market Overreaction An Early Holiday Gift, MusclePharm Trading At Less Than Half Of Intrinsic Value
Mark T. Phillips • 79 Comments
Mark T. Phillips • 79 Comments
Mon, Jun. 20, 3:42 PM
- Thinly traded micro cap ChromaDex (CDXC -41.6%) craters on a 22x surge in volume in response to an article published today on Seeking Alpha by Bleecker Street Research that details the company's connection with stock promoter Barry Honig (among his stable of companies is MusclePharm (OTCQB:MSLP -2.1%)).
- Bleecker says the company is due for a major correction (clearly underway today) which has the been the hallmark of other Honig investments like Pershing Gold, Chanticleer Holdings, Sevion Therapeutics, Cocrystal Pharma and Spherix.
- Update: In an 8-K filed on June 24, the company reported that board member William Smithburg resigned on June 20, prompted by Bleecker Street's article. Mr. Smithburg informed the company that "at this stage of his life he was unable to be involved as a board member in any company that was the subject of a malicious attack of this nature" although he also told the company that he intended to continue supporting the firm as an investor. As of June 14, he owned 640K shares.
- Update: On June 30, an announcement was made that the article was removed from SA and replaced by an apology by Bleecker admitting that it was misleading.
Thu, May 26, 4:37 PM
- Struggling nutrition products maker MusclePharm (OTCQB:MSLP) continues to make headway in its restructuring efforts, eliminating $45M in future financial obligations, including a reduction of $39.5M by exiting certain sponsorship and endorsement agreements (includes Tiger and Arnold).
- Other developments include a deal with Prestige Capital to use receivables to finance up to $10M and the previously announced divestiture of BioZone Labs for up to $9.8M.
Wed, May 25, 4:57 PM
- With the aim of cutting expenses, struggling sports nutrition firm MusclePharm (OTCQB:MSLP) terminates its endorsement deal with golfer Tiger Woods. The chronically cash-poor company is mired in lawsuits as it attempts to stabilize its business. Supplier Capstone Nutrition filed a $65M breach of contract suit a few days ago.
- Shares were down over 10% today before recovering.
- Update: The company agreed to pay $2.5M to terminate the contract with Mr. Woods and eliminate all future costs and obligations, a good deal considering it owed $7M.
Thu, May 12, 11:26 AM
- Protein supplement maker Hi-Tech Pharmaceuticals sues competitor MusclePharm (OTCQB:MSLP) over alleged misleading protein content claims in its Iron Mass product. The legal action also accuses MusclePharm of violating the Racketeer Influenced and Corrupt Organizations (RICO) Act by virtue of its use of the internet to willfully disseminate false product claims to consumers across the U.S.
- Hi-Tech says MusclePharm's misbehavior has steered an unfair number of consumers to buy Iron Mass instead of Hi-Tech's NitroPro, supposedly influenced by MusclePharm's claim of 40 grams of protein per serving when the actual amount of protein is less than half that amount once protein-spiking agents like the amino acid glycine are removed.
- Hi-Tech also points out the heavyweight endorser Arnold Schwarzenegger has terminated his relationship with MusclePharm (the Tiger Woods sponsorship is also on the rocks: 10-K, page 77).
Tue, May 10, 5:21 PM
Wed, Apr. 27, 7:16 AM
- Following through on last month's announcement that it was exploring divesting BioZone Laboratories as part of its restructuring plan, MusclePharm (OTCQB:MSLP) enters into a definitive agreement to sale the manufacturer of OTC drugs and nutritional supplements to Valencia, CA-based Flavor Producers.
- Under the terms of the agreement, MusclePharm will receive $9.8M, subject to working capital and other adjustments, with $1.5M subject to an earn-out based on BioZone's performance over the next 12 months. The deal should close this quarter.
- MusclePharm will maintain its relationship with BioZone via a manufacturing and supply agreement in addition to a supply agreement with Flavor Producers.
- Read now Why MusclePharm and Celsius Should Merge
Thu, Mar. 17, 7:09 AM
Thu, Mar. 17, 7:05 AM
- MusclePharm (OTCQB:MSLP) Q4 results ($M): Revenues: 41.1 (+25.7%); Gross Profit: 14.6 (+94.7%); Net Loss: (9.7) (+40.1%); Loss Per Share: 0.70 (+49.6%).
- Cash balance as of December 31: $7.1M.
- Shares have doubled since the beginning of March. CEO Brad Pyatt stepped down yesterday. Executive Chairman Ryan Drexler takes over until a permanent successor is hired.
- Previously: MusclePharm's Pyatt finally bids steps down, Executive Chairman Drexler appointed interim chief (March 16)
Wed, Mar. 16, 8:09 AM
- Beleaguered sports nutrition firm MusclePharm (OTCQB:MSLP) announces that much-maligned CEO Brad Pyatt has resigned as CEO and a member of the board of directors. Executive Chairman Ryan Drexler takes over on an interim basis until a permanent CEO is appointed.
- Mr. Drexler says the company's Q4 top line should increase 21% and gross margin by 12% (to 35%). He also says Mr. Pyatt "left the company in good hands" although many investors would dispute this considering the company had lost almost 90% of its value since 2014 before the recent run-up.
Tue, Mar. 1, 8:15 AM
- On a preliminary basis, sports nutrition firm MusclePharm (OTCQB:MSLP) expects Q4 revenue of ~$41M, up 25% yoy. Gross margin of ~35%, up 52% yoy. Fill rates were ~85%.
- In early January, the company secured $10M in financing from Prestige Capital to address liquidity issues. It is also exploring the sale of Biozone Laboratories.
- Final Q4 results will be released in the coming weeks.
Thu, Jan. 14, 8:29 AM
- With the aim of beefing up its precarious financial position, sports nutrition firm MusclePharm (OTCQB:MSLP) finalizes a $10M financing agreement with Prestige Capital. Under the terms of the loan, Prestige will pay the company 80% of the net face value of certain accounts receivable up a maximum value of $10M.
- On January 13, MusclePharm sold and assigned A/R with an aggregate face value of ~$7.6M to Prestige for ~$6.2M in cash.
- The company will use $6M to retire outstanding debt with ANB bank and the rest for working capital and general corporate purposes. Additional terms are not disclosed.
Wed, Jan. 6, 8:11 AM
- In a regulatory filing, sports nutrition firm MusclePharm (OTCQB:MSLP) discloses that President Richard Estallela resigned on December 30. He joined the firm in May 2013 as COO after a successful career at Office Depot.
- The company continues to struggle. Shares have lost about 85% of their value since Q4 2014.
Nov. 17, 2015, 8:34 AM
- Struggling sports nutrition firm MusclePharm (OTCQB:MSLP) has retained investment banker Canaccord Genuity to explore the sale of its BioZone Laboratories unit, acquired in January 2014. BioZone is a developer and manufacturer of over-the-counter drugs and preparations, cosmetics and nutritional supplements.
- Executive Chairman Ryan Drexler says, "We remain committed to acting in the best interests of our shareholders and further maximizing shareholder value. At the end of the day, we are a sales and marketing company and that is where we want to focus. As as result, we are going to concentrate on our core competencies while leaving other aspects of the business to strategic partners or outside parties who can bring more expertise to those areas than us."
Nov. 10, 2015, 11:11 AM
- Sports nutrition products maker MusclePharm (OTCQB:MSLP -15.4%) slumps after posting yet another quarter of poor financial results. Revenues were down almost 30% while operating expenses climbed 92%. Cash on hand is a paltry $3.5M.
- Management has launched a major restructuring in an effort to turn the business around. Prior guidance has been withdrawn and will no longer be provided.
Sep. 8, 2015, 5:44 PM
- Sports nutrition products maker MusclePharm (OTCQB:MSLP) settles the SEC investigation into its disclosure and internal control deficiencies dating from 2010 -2013. The disclosures primarily related to executive perquisites and related-party transactions. Current and former executives have voluntarily repaid certain amounts where there was inadequate documentation supporting the business purpose. The company has since revised its internal reporting processes and expanded its disclosures.
- The company agrees to pay a civil penalty of $700K and agrees to retain an independent consultant, mutually acceptable to MusclePharm and the SEC, for 12 months to review compliance and disclosure matters.
- CEO Brad Pyott, former audit committee chair Donald Prosser and former financial officers L. Gary Davis and Lawrence Meer have agreed to pay separate civil penalties.
- Previously: MusclePharm reaches agreement with SEC to resolve investigation (April 13)
Aug. 25, 2015, 6:12 PM
- MusclePharm (OTCQB:MSLP) has launched a restructuring involving "the closure of certain facilities, employee reductions and the termination of contracts," and which "could result in a one-time charge of up to $20 million to $30 million."
- The company thinks cost savings of more than $20M/year are possible. It's aiming for 2016 profitability.
- Though the restructuring isn't expected to affect revenue, the company has nonetheless cut its full-year revenue guidance to $190M-$200M. The sole analyst estimate is at $214.8M.
- COO James Greenwell has left the company. No replacement has been named.
Headquartered in Denver, Colorado, MusclePharm is a rapidly expanding healthy life-style company that develops and manufactures a full line of NSF and scientifically approved nutritional supplements that are 100% free of any banned substances. Based on years of research, MusclePharm products are... More
Industry: Drug Manufacturers - Other
Country: United States
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