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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

March 8, 2022

Date of report (date of earliest event reported)

 

MusclePharm Corporation

(Exact name of registrant as specified in its charter)

 

Nevada   000-53166   77-0664193

(State or other jurisdictions of

incorporation or organization)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

6728 W. Sunset Rd. Ste. 130, Las Vegas, NV 89118

(Address of principal executive offices) (Zip Code)

 

(800) 292-3909

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
N/A        

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 
 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

On March 8, 2022, MusclePharm Corporation (the “Company”) entered into an Unsecured Revolving Promissory Note (the “Note”) with Ryan Drexler, the Chairman of the Board and Chief Executive Officer of the Company (the “Lender”). The Company expects to initially borrow approximately $3 million under the Note. Under the terms of the Note, proceeds may be used solely to finance the production of orders from Costco Wholesale Corporation or any of its affiliates or subsidiaries. The Note does not contain a cap on borrowings thereunder. However, further advances under the Note are at the discretion of the Lender. Outstanding balances under the Note accrue interest at the rate of 18% per annum. Prior to maturity, the Company generally may pay down principal balances and re-borrow under the Note, subject to the discretion of the Lender to advance funds under the Note. The Note contains customary events of default and acceleration provisions.

 

The Note is subordinate to the 14% Original Issue Discount Senior Secured Notes previously issued by the Company. Under the terms of the First Amendment to Intercreditor and Subordination Agreement, dated as of March 8, 2022, between the Company, Ryan Drexler and Empery Tax Efficient, LP (the “Amendment”), principal but not interest due under the Note generally may be repaid out of payments received by the Company in respect of accounts receivable financed pursuant to the Note.

 

A copy of each of the Note, the Amendment and the original Intercreditor and Subordination Agreement is attached to this Current Report on Form 8-K as Exhibit 10.1, 10.2 and 10.3, respectively, each of which is incorporated herein by reference as though fully set forth herein. The foregoing summary descriptions of the foregoing instruments are not intended to be complete and are qualified in their entirety by the complete text thereof.

 

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

 

The information set forth in Item 1.01 is incorporated by reference herein.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.   Description
10.1   Unsecured Revolving Promissory Note, dated March 8, 2022, between MusclePharm Corporation and Ryan Drexler
10.2   First Amendment to Intercreditor and Subordination Agreement, dated March 8, 2022, between MusclePharm Corporation, Ryan Drexler and Empery Tax Efficient, LP
10.3   Intercreditor and Subordination Agreement, dated October 13, 2021, between MusclePharm Corporation, Ryan Drexler and Empery Tax Efficient, LP
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

MUSCLEPHARM CORPORATION    
     
  By: /s/ Ryan Drexler
  Name:  Ryan Drexler
  Title: Chief Executive Officer
Date: March 11, 2022    

 

 

 

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