DENVER-- MusclePharm Corporation today announced the completion of a financing agreement with Prestige Capital Corporation (“Prestige Capital”) in the initial amount of $10 million. The financing agreement is a major step towards strengthening the Company’s financial position. The agreement with Prestige Capital allows the Company to use its receivables to finance up to a total of $10 million. The Company used the initial borrowings to retire the $6.0 million outstanding debt with ANB Bank and intends to utilize future borrowings for general working capital and other business needs.
“We are striving to be a fully sustainable free cash flow business,” said Ryan Drexler, MusclePharm’s Executive Chairman.
“Retiring the ANB debt and adding the Prestige Capital financing has helped reduce uncertainty regarding liquidity and capital resources. These are significant milestones in our restructuring plan and strengthen our balance sheet. I am very excited about the Company’s future as we continue to build a profitable growing business and add value for our shareholders.”