Two-year agreement gives investor Southridge 500,000 warrants
By Toni Weeks
San Diego, Nov. 4 - MusclePharm Corp. said it entered into an equity purchase agreement and a registration rights agreement with investor Southridge Partners II, LP, according to an 8-K filed with the Securities and Exchange Commission Friday.
Under the equity purchase agreement, Southridge committed to purchase up to $10 million of the company's common stock over a two-year period.
The sale price for the stock is 94% of the average of the two lowest closing bid prices of any two applicable trading days during the five-trading-day period commencing on the day after a put notice is delivered to the investor and estimated put shares are delivered and cleared through Southridge's brokerage account.
In connection with the agreement, MusclePharm issued to Southridge 500,000 five-year warrants exercisable at 120% of the average of the closing prices of the common stock during the 20 trading days prior to the exercise date.
MusclePharm also entered into an exchange and purchase agreement with Southridge, issuing to the investor 190 shares of its series C preferred stock in exchange for $100,000 and the elimination of $90,000 of accrued fees.
MusclePharm develops sports nutrition products and is based in Denver.
| Issuer: | MusclePharm Corp.
|
| Issue: | Equity purchase agreement for common stock
|
| Amount: | $10 million
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| Price: | 94% of two lowest closing bid prices of any two applicable trading days during five-trading-day period beginning day after put notice is delivered and put shares delivered and cleared
|
| Tenor: | Two years
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| Warrants: | For 500,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | 120% of average of closing prices of common stock during 20 prior trading days
|
| Settlement date: | Nov. 4
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| Stock symbol: | OTCBB: MSLP
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| Stock price: | $0.0177 at close Nov. 3
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