DENVER BUSINESS JOURNAL - The CEO of a Denver nutritional supplements company is loaning his company $11 million to settle a contract dispute.
Ryan Drexler, MusclePharm Corp.'s interim CEO, president and board chairman, is loaning the company the money to settle a contract dispute with its former chief supplier Capstone Nutrition.
Capstone had sued MusclePharm for $65 million earlier this year, but settled for an $11 million payment, funded by Drexler. That's less than the $21.9 million that MusclePharm was expecting to pay in the settlement, so $8.9 million will be reported as a gain in the next quarter, the company said.
MusclePharm said it's slowly recovering a variety of woes, including former CEO Brad Pyatt getting into trouble with the Securities and Exchange Commission last year, with the company having to pay a $700,000 settlement.
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