Can anyone please shed light on what this means exactly and if it's beneficial to MSLP, how?
"On August 30, 2012, MusclePharm Corporation, a Nevada corporation (the “Company”), provided written notice of termination to Southridge Partners II, LP, a limited partnership organized and existing under the laws of the State of Delaware (“Southridge”), pursuant to which the Company advised Southridge of the termination of that certain Equity Purchase Agreement, dated November 4, 2011, by and between the Company and Southridge (the “Equity Agreement”), which such termination should proceed pursuant to the terms and conditions therein contained. In conjunction with the termination of the Equity Agreement, the Company terminated that certain Registration Rights Agreement, dated November 4, 2011, by and between the Company and Southridge (the “Registration Rights Agreement”). Upon termination of the Registration Rights Agreement, the Company is no longer under any obligation to register any of its securities for Southridge."
Notice in the S-1 that Southridge didn't even own shares it was selling. In some cases, toxic financiers can induce a company like MSLP to deliver massive shares in advance, sell the shares in the market and then revert part of the money back to the public company. It looks like a naked put option using tradable shares. That may be why MSLP cancelled.
It is more like a naked call option that has been called from the company @ .012 max. At worst, the trade is a wash. It has a positive effect to the balance sheet as MSLP continues to shore up their finances and rid themselves of financial obligations. There is strong support at the .01 level. A strong bid above .012 and she's off to the races. Look at your 60-min chart with your 50-day MA and you will understand the trajectory. Let's see if she continues to slowly creep up. There's a small gap on the 60-min chart between .01 and .011 that doesn't show up on a daily chart, but may have to get closed before the true rise begins. Other than that, I think MSLP is technically ready for the rebound. Without more dilution, it is inevitable.