Home Stocks Wynnefield Partners Dumps MusclePharm (MSLP)

Wynnefield Partners Dumps MusclePharm (MSLP)

Advertisement Disclosure: When you purchase through our sponsored links, we may earn a commission from our partners. By using this website you agree to our T&Cs.

Wynnefield Partners is dumping MusclePharm (MSLP) in more ways than one. The fund sold off close to 40% of its shares, now owning 4.7% of the company – down from the 7.7% stake it had when it went active in April. CONSAC is still active here with a 7.4% stake after they went active in May.

Here are our previous notes on MSLP that we put out via Activist Strategy.

 

But the story gets better. Wynnefield said that it was selling because MusclePharm may not be able to continue as a going concern for much longer. Bankruptcy is a very real possibility if it does not do a dilutive capital infusion, which would also be negative for shareholders.

Recall that back on June 8 Wynnefield sent a letter to MusclePharm. Here were the highlights, where it wanted the company to do the following:

1) “Issue an immediate press release correcting any material misstatements regarding the Company’s current liquidity and cash flow position.

2) Announce the opening of a window for shareholder submission of nominees for election to the Company’s Board, including nominees to fill the newly created seventh board seat, in accordance with Nevada corporate law.

3) Provide a full explanation surrounding the mass resignation and replacement of the three independent directors of the Company.

4) Engage a qualified investment bank to assist management and the Board to fully explore all strategic opportunities to increase shareholder value, including auction of the Company.”

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.