PR-Inside.com: 2018-12-06 14:32:30
Equity to be Exchanged in Return for Media and Advertising Services Worth $3 million
BURBANK, CA / ACCESSWIRE / December 6, 2018 / MusclePharm® Corporation (OTCQB: MSLP) (''MusclePharm'' or the ''Company''), a scientifically driven, performance-lifestyle sports nutrition company, is pleased to announce today that it has entered into an Agreement for Equity in Exchange for Services (the "Agreement") with American Media, LLC (the "Investor").
Pursuant to the Agreement entered into on November 30, the Company agreed to issue to American Media 928,572 restricted shares of its common stock, par value $0.001 per share (the "Shares"), at $3.23 per share in exchange for $3,000,000 worth of professional media support and advertising services. Based on the company's fully diluted shares, the deal places an approximate value on the Company of $105 million.
"We are proud to enter into this agreement with American Media, one of the preeminent, multi-platform digital and print content companies in the nation," said Ryan Drexler, Chairman, CEO and President of MusclePharm. "Our brand will find a receptive and targeted audience among American Media titles that include Men’s Journal, and Muscle & Fitness and Muscle & Fitness Hers, as well as the Mr. Olympia Contest. This agreement will provide valuable exposure to MusclePharm and contribute to continued progress toward our goal of sustained growth and profitability."
"AMI has proven that we have an aggressive and assertive strategy when it comes to the growth and diversification of our business," said AMI Chairman and CEO David J. Pecker. "This investment with MusclePharm is an extraordinary partnership to not only add a new and exciting revenue opportunity to AMI, it also underscores the authority, engagement and value that our brands deliver across multiple platforms."
The Shares will be issued to the Investor on January 1, 2019. For additional information, please refer to the 8-K document as filed with the Securities and Exchange Commission.
No underwriters or private placement agents were involved in this transaction.
About MusclePharm Corporation
MusclePharm® develops, manufactures, markets and distributes branded nutritional supplements. Its portfolio of recognized brands includes MusclePharm® Sport Series, Essential Series and FitMiss™, as well as Natural Series, which was launched in 2017. These products are available in more than 100 countries worldwide. MusclePharm is an innovator in the sports nutrition industry with clinically proven supplements that are developed through a six-stage research process utilizing the expertise of leading nutritional scientists, physicians and universities. For more information, visit www.musclepharmcorp.com.
About American Media, Inc.
American Media, Inc. (AMI) owns and operates the leading print and digital celebrity and active lifestyle media brands in the United States. AMI's titles include Us Weekly, Star, OK!, In Touch, Life & Style, Closer, Men's Journal, Muscle & Fitness, Mr. Olympia Contest, National Enquirer and other celebrity and teen titles. AMI also manages eleven different digital sites including Usmagazine.com, OKmagazine.com, RadarOnline.com, Intouchweekly.com, Lifeandstylemag.com, Closerweekly.com, MensJournal.com, MuscleandFitness.com and other digital and social properties. AMI's magazines have a combined total circulation of 5.7+ million and reach approximately 53 million men and women each month. AMI's digital properties reach approximately 65 million unique visitors monthly.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects," "anticipates," "intends," "estimates," "plans," "potential,'' "possible," "probable,'' "believes," "seeks," "may,'' "will,'' "should," "could" or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company's business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, the Company's Quarterly Reports on Form 10-Q and other filings submitted by the Company to the Securities and Exchange Commission, copies of which may be obtained from the SEC's website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.
MusclePharm Investor Relations
SOURCE: MusclePharm Corporation