DENVER, CO, Feb 15 (Marketwire) --  
 
MusclePharm Corporation (OTCQB: MSLP), a nutritional supplement company 
 
focused on active lifestyles, is pleased to announce that it has released 
 
a letter from its CEO, Bradley J. Pyatt, to update shareholders on the 
 
current status of the Company.  
 
 
 
    Dear Valued MusclePharm Shareholder, 
 
 
 
    I want to personally thank you for being a MusclePharm Corporation 
 
shareholder. We are excited about the future of our Company and this 
 
letter outlines our vision and plans for the future.  
 
 
 
    Over the past three years we achieved exponential product sales growth, 
 
growing from around $1.4 million in revenue for 2009, to approximately 
 
$78 million in 2012. However, to finance that growth from essentially a 
 
startup mode we had to utilize dilutive financing instruments, which were 
 
very expensive and hurt our financial performance, and as one would 
 
expect, our stock price suffered too. All of us at MusclePharm believe 
 
that our market capitalization today is not a valid reflection of our 
 
Company's current underlying fundamentals. Below I address how we are 
 
proactively addressing our future, which we believe should result in 
 
better financial results and a higher stock price as we move forward. 
 
 
 
    As you probably know, we recently completed a $12.0 million registered 
 
direct offering of our Series D Convertible Preferred Stock at $8.00 per 
 
share. Each preferred share is convertible into two shares of our common 
 
stock. In 2012, we spent considerable time cleaning up the Company's 
 
balance sheet and raising other capital to support our growth. In late 
 
2012, we issued 516,308 shares of our common stock to several accredited 
 
investors pursuant to conversions of warrants to purchase an aggregate of 
 
728,648 shares of our common stock. As a result of these warrant 
 
conversions and other extinguishments of derivative liabilities, our 
 
stockholders' deficit decreased from approximately $11.0 million at June 
 
30, 2012 to approximately $7.3 million at September 30, 2012 and our 
 
derivative liabilities decreased from approximately $7.9 million at June 
 
30, 2012 to approximately $25,000 at September 30, 2012. Now, in the 
 
first quarter of 2013, after our registered direct offering, we believe 
 
we have positioned the Company to continue growing with the proper type 
 
of capital structure that will allow us to focus on profitability.  
 
 
 
    With the proceeds from our recently completed offering we paid off all 
 
our mezzanine and short-term debt. We are now debt free. We expect to use 
 
the remaining proceeds from the offering to launch new products, seek to 
 
expand internationally, and seek to increase our U.S. sales force.  
 
 
 
    As you also are probably aware, in late 2012 we completed an 850:1 
 
reverse stock split. The reverse split was a necessary step for us to 
 
seek a listing on a stock exchange. We expect we will have such a listing 
 
this summer after we post our 2013 first quarter results. There are 
 
several benefits to being listed on a stock exchange, but the most 
 
important is the ability to seek institutional investment in our shares. 
 
The institutions that were looking at investing in our Company over the 
 
past few years declined for the most part, citing our lack of a stock 
 
exchange listing. Going forward, these investors will have the ability to 
 
participate in our Company once we are listed on an exchange. 
 
 
 
    Our Growth Story 
 
 
 
    In September of 2008, we started MusclePharm out of my garage in Denver, 
 
Colorado. Fast-forward to today and we are recognized as a global leader 
 
in a multi-billion dollar industry. Our gross revenue increased 
 
exponentially as follows*: 
 
 
 
    $s in millions 
 
 2009: $0 - $1 
 
 2010: $1 - 4 (300% gain YOY) 
 
 2011: $4 - 
 
17 (325% gain YOY) 
 
 2012: $17 - 78 (370% gain YOY) 
 
 
 
    * These numbers have been rounded for ease of reading, and 2012 is 
 
unaudited.  
 
 
 
    In a time when our economy has struggled, we achieved revenue growth of 
 
approximately 300%+ year over year. We project we will increase our gross 
 
revenues in 2013 to over $100 million.  
 
 
 
    At the 2012 Bodybuilding.com Supplement Awards, we received three Awards 
 
of Excellence; we received (i) the "Brand of the Year" award, (ii) the 
 
"Packaging of the Year" award, and (iii) the "Pre-Workout Supplement of 
 
the Year" award for Assault(TM). On top of that, we've won over 15 other 
 
industry awards since our inception.  
 
 
 
    Our headquarters in Denver, Colorado has a state-of-the-art over 30,300 
 
square feet athletic facility with a medical and clinical testing 
 
department, complete with equipment for measuring and conducting athletic 
 
clinical studies and supporting athletes. Our medical and clinical 
 
professionals consist of several nationally recognized medical doctors 
 
and nutritional experts who oversee our product research, formulation, 
 
efficacy analysis and testing. It also serves as a place for some of the 
 
world's top athletes to come and train and be educated on the latest 
 
nutritional advancements that we have under development.  
 
 
 
    Our primary growth strategy is to: 
 
 
 
 
 
--  Increase our product distribution and sales through increased market 
 
    penetrations both domestically and internationally; 
 
     
 
     
 
--  Increase our margins by focusing on streamlining our operations and 
 
    seeking operating efficiencies in all areas of our operations; 
 
     
 
     
 
--  Continue to conduct additional testing of the safety and efficacy of 
 
    our products and formulate new products; and 
 
     
 
     
 
--  Increase awareness of our products by increasing our marketing and 
 
    branding opportunities through endorsements, sponsorships and brand 
 
    extensions. 
 
     
 
Our core marketing strategy is to brand MusclePharm as the "must 
 
have" fitness brand for workout enthusiasts and elite athletes. We seek 
 
to be known as the "athlete's company," run by athletes who create their 
 
products for other athletes, both professional and otherwise. We believe 
 
that our marketing mix of endorsers, sponsorships and providing sample 
 
products for our retail resellers to use is an optimal strategy to 
 
increase sales. 
 
 
 
    In addition: 
 
 
 
--  Our products are currently sold in over 110 countries, with the goal 
 
    of reaching 175 countries in the next few years 
 
--  Our products are available in over 10,500 U.S. retail outlets with the 
 
    goal of reaching 20,000+ in the next few years 
 
--  Retail stores include GNC and Vitamin Shoppe, as well as over 100 
 
    online stores, including Bodybuilding.com, Vitacost.com, GNC.com, 
 
    Amazon.com, SupplementWarehouse.com, AllStarHealth.com, 
 
    LuckyVitamin.com, Dick's Sporting Goods, and many more 
 
 
 
We recently renegotiated our terms with our manufacturers and have 
 
refined our distribution model, and as a result, we should experience 
 
better sales margins. On top of this, we have reviewed our operating 
 
costs and are cutting several non- essential expenses. We also recently 
 
launched a new product called Amino1. To date, it is the fastest growing 
 
product (sku) we have ever had here at MusclePharm. 
 
 
 
    Finally, in mid 2012, we hired an experienced CFO, Gary Davis, who most 
 
recently served as executive vice president and CFO for Bodybuilding.com 
 
for almost six years. Bodybuilding.com is a world leader in sports 
 
fitness and nutritional supplements and is a very large website for 
 
nutritional products. Gary's experience includes extensive experience as 
 
a chief financial officer with strengths in external and management 
 
reporting and analysis, accounting, tax, treasury, human resources and 
 
risk management functions in public and private companies along with the 
 
dietary supplement industry. He provides strength and direction for the 
 
demands and growth of MusclePharm. 
 
 
 
    Going from no revenues to over $78 million in less than four years was 
 
impressive growth, but all of us here at MusclePharm have the goal of 
 
reaching $500 million in annual sales -- but only at a profitable level. 
 
We are excited about focusing on our core business without the after 
 
effects of burdensome financings.  
 
 
 
    If you have any questions regarding our Company, please feel free to 
 
contact me directly or our office at the numbers listed below. 
 
 
 
    Sincerely, 
 
 
 
    Brad Pyatt 
 
 Chief Executive Officer  
 
 
 
    ABOUT MUSCLEPHARM CORPORATION  
 
 
 
    MusclePharm is a healthy lifestyle company that develops and manufactures 
 
nutritional supplements that address active lifestyles, including muscle 
 
building, weight loss and maintaining general fitness through a daily 
 
nutritional supplement regimen. The products are formulated through a 
 
six-stage research process using the expertise of leading nutritional 
 
scientists. MusclePharm's products are sold to consumers in more than 110 
 
countries and available in over 10,500 U.S. retail outlets, including 
 
Dick's Sporting Goods, GNC, Vitamin Shoppe and Vitamin World. MusclePharm 
 
products also are sold through more than 100 online channels globally, 
 
including bodybuilding.com, amazon.com and vitacost.com. For more 
 
information, please visit www.musclepharm.com.  
 
 
  http://www.reuters.com/article/2013/02/15/idU...KW20130215