MusclePharm Corporation Announces Conversion Of Warrants For An Aggregate Of 715 Million Shares Of Common Stock Unaudited Pro Forma Reduction in Derivative Liability at June 30, 2012 from $7,909,000 to $25,000
DENVER, Oct. 19, 2012 /PRNewswire/ -- MusclePharm Corporation (MSLP.OB), a nutritional supplement company focused on active lifestyles, announced that it has completed conversions by investors of warrants to purchase an aggregate of 715 million shares of its common stock, which as of June 30, 2012 (unaudited) represented a derivative liability of $7,909,000 contributing to a stockholders' deficit of $11,417,000. Based on these conversions, the derivative liability would have been reduced to $25,000 and stockholders' deficit would have been reduced to $5,331,000, each pro forma as of June 30, 2012 (unaudited). These warrants were converted into approximately 502 million shares of common stock.
John H. Bluher, Chief Operating Officer said, "The successful closing of this conversion is a major step forward for MusclePharm. We have strengthened our balance sheet and decreased our stockholders' deficit significantly."
The Company also confirmed the suspension of its stock repurchase plan announced in April 2012. Under the plan the Company bought back a total of 26,431,575 shares of common stock.
ABOUT MUSCLEPHARM CORPORATION
MusclePharm is a healthy lifestyle company that develops and manufactures nutritional supplements that address active lifestyles, including muscle building, weight loss and maintaining general fitness through a daily nutritional supplement regimen. The products are formulated through a six-stage research process using the expertise of leading nutritional scientists. MusclePharm's products are also sold to consumers in more than 110 countries and available in over 10,000 U.S. retail outlets, including Dick's Sporting Goods, GNC, Vitamin Shoppe and Vitamin World. MusclePharm products also are sold through more than 100 online stores globally, including bodybuilding.com, amazon.com and vitacost.com. For more information, please visit www.musclepharm.com.
FORWARD LOOKING STATEMENTS
Certain information contained herein includes forward-looking statements. These statements include, but are not limited to, statements about the Company's balance sheet and financial position. Undue reliance should not be placed on forward-looking statements, since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company's control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Readers are encouraged to read the Company's reports filed with the SEC, including its Form 10-K/A for the year ended December 31, 2011, for a description of forward-looking statements and related uncertainties. MusclePharm assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
For more information, please contact:
John H. Bluher
Chief Operating Officer
SOURCE MusclePharm Corporation