Breaking News: Muscle Flex, Inc (MFLI) Seeks to Accelerate Growth Through Acquisition

6/25/2009 6:49 AM

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    You are subscribed as StockGuru Spotlight: Muscle Flex, Inc (OTC: MFLI) Muscle Flex Inc. Seeks to Accelerate Growth Through Acquisitions and Joint Ventures

 

Muscle Flex Inc. (Pinksheets:MFLI - News) is seeking to accelerate its growth through the acquisition of synergistic companies that have commercial-ready products within the health, fitness, direct response and consumer products industries.Muscle Flex Inc. is actively searching for acquisition candidatesas well as submissions from entrepreneurs with products/mediaready for sale and distribution.

 

"One of the most difficult processes in bringing a product tomarket is getting to the stage of commercial viability.Often, once a product has reached that stage, companiessimply lack the resources, capital and/or expertise to successfullylaunch the product. Direct response programs have shownto maximize market penetration, exponentially grow productsales and brand awareness and achieve profitability,"said Danny Alex, CEO of Muscle Flex Inc.

Contact:

Danny Alex CEO Email Contact http://www.MuscleFlexInc.com (corporate) http://www.TheMuscleFlex.com (product) http://www.Myspace.com/themuscleflex    

 

Muscle Flex, Inc.

VIEW THE PROFILE

 

MuscleFlex Inc. (Muscle Flex™ - OTC: MFLI) brings new products to market using direct response TV infomercialsspecializing in the health, fitness, wellness and hygienesectors. Muscle Flex™ also develops and creates generaltelevision content for network and cable television distribution.The Corporate strategy is to develop new and innovative products for sale and distribution through a proprietary direct response marketing system and the creation of television shows and content.

 

 

ThreeProducts to Be Launched in Later 2009

 

MuscleFlex™ is launching three new inexpensively pricedproducts in the second half of 2009. It is anticipated thatthe weak economic environment favors the adoption of new products with low price points.

 

The Company’s plans to design a pilot prime time program forhealthy lifestyles. If the pilot is successful, an ongoingprogram is anticipated to be lucrative providing an avenuefor direct marketing.

 

Initial Products

 

The Company is in the process of creating the infomercials forthree innovative personal health, safety and hygiene products.Scripts and conceptual framework for the infomercials andadvertorials are complete.

The Company is completing final design changes on the Muscle Flex™ product, and is scheduled to complete the initial infomercial for it in 2009. Initial airtime is scheduled for early 2010. Separate contract manufacturers have been selected for the initial three products that will be introduced in 2009, along with the Muscle Flex™ product.

 

 

TheFlagship Product - The Muscle Flex™ Home Fitness Unit

 

The premier product the Company will market is the Muscle Flex™Home Fitness Unit. This is a revolutionary home fitnessproduct because it combines cardiovascular work with strengthtraining and flexibility. The importance of flexibilityand strength training during the aging process are well known, but these benefits are more recently documented than those of cardiovascular work.

 

Usingthe Muscle Flex™ improves lateral strength and flexibilitywhile providing a cardiovascular and upper body workout.The lateral movement is critical in opening up the hip joint rather than just moving hip muscles front to back. Without lateral movement, people feel less mobile with age.

 

The Company plans to position the Muscle Flex™ product for improvingthe quality of life even during the aging process. The lossof mobility that typically occurs with the aging can besignificantly reduced. The Muscle Flex™ improves the quality of life by improving the range of motion and keeps joints strong and flexible.

 

The Muscle Flex™ uses the “resistance out / resistance in” principle.With its multiple tension settings, the user pushes againstresistance and then pulls against the same resistance. Theleg pushing and pulling builds strength and flexibility.

 

The base product will be priced at$399 and at $499 with allaccessories. The Muscle Flex™ is intended to appeal to awide audience. Its low impact benefits address the olderbaby boomers and overweight users. Even high level cardiovascular exercisers such as long distance runners or bicyclists can benefit from its lateral flexibility features.

 

MuscleFlex™ Marketing

 

The Muscle Flex Inc. direct marketing model is designed to successfullylaunch new products by cross-marketing and selling usingmultiple sales channels, such as infomercials, advertorials,the Internet and select retail stores.

 

Leveragingthe global brand awareness of “As Seen on TV” product anda growing portfolio of wholly owned trademarks and patents, Muscle Flex Inc. is competitively positioned to capture share in the consumer products market. Past performance in the direct response TV industry has shown strong market acceptance for home fitness equipment and many other everyday use consumer products. Due to the product’s versatility,it is appropriate as a self contained fitness unit and asa warm up device before an extensive workout or martialarts session. It is complimentary to many exercise programs,including yoga, pilates, and any weight training or cardiovascular training regimen.

 

The Muscle Flex™ marketing debut occurred at the high-profileGBK Emmy Awards Gifting Suite in September 2008. The productwas well received and several celebrities became fans includingKevin Sorbo, Randy Jackson, Joe Fatone and Cloris Leachman. After the product introduction, Danny Alex, CEO, made some significant modifications to improve its effectiveness. The infomercial for the Muscle Flex™ is scheduled to launch in late 2009 and will feature Monica Brant, the InternationalFederation of Body Builders (IFBB) Fitness Olympia Championand Danny Alex, the Company Founder and CEO.

 

 

Vitamin Buddy™

 

The Vitamin Buddy™ is a portable vitamin / pill box that hasadjustable timers to remind the consumer when to take medication.Each Vitamin Buddy™ has three separate timers that can beadjusted for different time intervals. The Vitamin Buddy™ beeps when the previously set time occurs. This device is intended to be highly valuable to an aging population. The Company plans to market the product at two price points, $9.95 and 14.95, with a buy one get one free offer.

 

 

Securo-Marker™

 

The Securo-Marker™ is a marking pen that has invisible ink whichcan only be seen when a UV light is directed to the marking.The marking pen has a UV light built in, at the oppositeend of the pen. The pen can be used to mark valuables thatcan later be identified in the event of a theft, misplacementor comingling of belongings. Other applications include written documentation of computer and Internet based passwords, marking toys or items that are shared. The Company plans to market it at $9.95 for 3 Securo-Markers.

 

MagicClipper ™

 

The Magic Clippers are nail clippers that collect the cut nailinside the clipper. The Magic Clippers have a casing overthe clipper with a vessel to catch the nail and eliminatethe “flying nail” syndrome. There are likely to be severalstyles to choose from. The Company plans to market the Magic Clippers at two price points $9.95 and $14.95 for a set of four.

 

Future Products

 

The Company is in discussions with an entertainment productioncompany to co-develop a pilot program that is designed forprime time/daytime television. The program will deliverreal life practical solutions to those seeking a healthylifestyle. Topics will include sugar free recipes, exercises and how to maintain healthy meals while at work events. Guest celebrity appearances are planned to add variety. Muscle Flex anticipates introducing additional personal health and safety products. Some of the potential new products include vitamins that are branded with Muscle Flex, a smallerversion of the Muscle Flex product, and natural hair removalproducts.

 

Health,Wellness and Fitness Media and Marketing

 

MuscleFlex™ Inc. is developing Health, fitness and wellness basedmedia properties for both television and varied video broadcast.The Company is currently engaged in a number of North American based media endeavors specifically for television and video distribution.

 

Health- Fitness - Wellness - Hygiene Products (Direct Response)

 

MuscleFlex™ Inc. utilizes its proprietary Direct Response modelto expeditiously and economically market products worldwide.

 

The Company employs:

Short and long form TV Infomercials Advertorials Traditional retail Other associated advertising vehicles

 

MuscleFlex™ places a strong emphasis on the "Drive to the Internet"principle. This model allows for a low cost transaction,the ability to provide additional information and most importantly, up-sell for a number of additional related products to maximize its "sale per order".

 

 

MUSCLEFLEX™ BUSINESS MODEL

 

MuscleFlex Inc. is executing a business model that outsourcesmanufacturing and distribution operations to entities withconsiderable experience in these areas. This model minimizesthe initial capital required to ramp up production, marketing and distribution, while enabling management to leverage its intellectual capital. The Company has agreements with manufacturers in China for each of its first three products. For the Muscle Flex™ product, the Company has contractedwith a manufacturer in Viet Nam and is seeking a secondmanufacturer. Contract manufacturers source the necessaryraw materials and make the product to the Company’s specifications.

 

MFLI has agreements with call centers to outsource all orderingand distribution of products to consumers. By outsourcingmuch of the operational functions, the Company can focuson leveraging its intellectual capital by:     CelebritySupport

 

Designinginfomercials may include the use of a celebrity as the infomercialMC, and/or may highlight endorsements by celebrities. Thedirect marketing advertorials are 30 seconds to 5 minutes long, and the infomercials are 20 to 30 minutes.

 

TestPhase and Revenue

 

Each infomercial and advertorial goes through a media test phasewhich provides data on its effectiveness. With this information,the Company forms agreements to pay media outlets a percentageof gross revenues for the air time in launching the infomercial/advertorial to a broader audience. This business model incorporates a high level of variable costs for each component, from manufacturing to marketing and distribution. On an ongoing basis, the Company’s business model lowers operating risksince much of the costs are incurred relative to sales volume.

 

LowCost Business Model

 

The direct response marketing and distribution is an importantcomponent in executing this low cost business model. Aneffective order and distribution system improves customersatisfaction with courteous service and on-time deliveryof products. The marketing and distribution component ofthe Company’s business plan is outlined below.

 

Consumer Response

 

When a consumer sees an infomercial or advertorial, he/she caneither call the toll free number or use the Internet toorder. For either avenue, the time, location and infomercialthe consumer is responding to is recorded. This data istracked and used to assess direct marketing effectivenessin a particular geography at the specific time. The call center accepts the customer order, processes payment through the merchant services component and issues an order to the distribution center for delivery of the product. The process is automated and simple for the customer.

 

Trademark- Intellectual Property

 

MuscleFlex™ Inc. procures and develops intellectual property opportunitiesthat are both service and product based. Typically there is value inherent in trademarks and patents associated with products and services. Muscle Flex™ Inc understands the importance of developing and protecting existing intellectualproperty and engaging in activities that monetize the inherentopportunities with a particular trademark or patent.

 

The Company owns the Canadian trademark “In the Raw®”, acquiredfrom Danny Alex in 2008. The In the Raw® is registered todistribute products for extreme sports, In the Raw® T-shirts, caps, and CD’s.

 

The Muscle Flex team has years of intellectual property experienceto ensure the critical steps of protecting and developingbrand value is in place right from the beginning. The valuegenerated in hundreds of thousands of dollars in marketinga product can be quickly translated into traditional retail opportunities as well as other cross-pollination sales generators. This is the first step in rolling out any product via directresponse.

 

The Company has filed a patent on the Muscle Flex™ in Canadain June, 2008. Due to the large number of patent issuesfor personal health devices in the US and internationally,a patent may not be enforceable. The greatest value in theMuscle Flex™ product is its first-to-market status for a low impact cardiovascular, strength and flexibility training all in one unit. The Company has several registered trademarks it will use in marketing the Muscle Flex including “YourWorkout Starts Here…”, “Extreme Machine” and “Muscle Flex.” These registered trademarks carry the ® symbol. Additional trademarks owned by the Company that carry the ™ symbolare “Vitamin Buddy”, “Magic Clippers”, “Securo Marker” and “Natural Fountain of Youth.”

Market Overview

 

HealthProducts Market Boom

 

Americansspent over $66 billion on sporting goods equipment and apparelin 2006, and over $17 billion on health clubs. The babyboomer generation has a record of spending on healthy lifestyle and better physical fitness to improve the quality of life. Many highly successful home fitness products were initially sold through direct advertising, including the Bow-Flex, Total Gym and Nordic Track. These products sold for $1,000to $5,000 per unit. The Company’s price point of $400 to$500 per unit is very attractive for a versatile and beneficialpersonal fitness equipment.

 

Marketfor Home Fitness

 

The Sporting Goods Manufacturers Association reports sales inthe US of sports equipment and apparel was $66.4 billionin 2006. According to the Mercanti Group, approximately43 million Americans belong to health clubs. Revenues fromhealth clubs are over $17 billion annually. Americans areclearly willing to spend on their physical health needs.The aging baby boomer population has been far more focusedon healthy living practices in older age as compared to older generations. It is estimated that up to 65% of the US adult population is overweight or obese, and yet, spending on new diet fads continues. More Americans are becoming aware of the need for healthier living including low impact exercise that leads to a higher quality of life. We believeas the baby boomer generation moves into the pre-retirementand early retirement age, the interest in quality of lifeand personal health increases.

 

In the last several decades, the baby boomer generation hasprovided an increased emphasis on personal health. The trendsof more health clubs with treadmills, stationary bikes,and other aerobic devices and the popularity of workoutregimens including weight machine and free weight training, all occurred to meet the health requirements of the baby boomers. Several in-home fitness products sold through infomercials have performed very well. The Bow-Flex strength training,which sells for up $5,000 per unit, has generated over $1billion in revenues. The Total Gym, which costs up to $2,000per unit has generated revenues of approximately $2 billion.The Nordic Track set the record for the highest number of personal fitness units sold in one month through direct advertising at 350,000 units. The direct advertising marketing channel has clearly shown that it is effective for home fitness equipment.

 

DirectAdvertising Industry

 

The direct advertising industry which utilizes the entertainmentand media markets for advertising and infomercials, hasshown significant resiliency in the current weak economicenvironment. According to a recent article (April 22, 2009),CNBC reports that the $150 billion infomercial industryhas been booming throughout the recession, http://www.msnbc.msn.com/id/30308356

 

Once an infomercial is produced, a media test is conducted todetermine its effectiveness. Health care and fitness productsare typically aired on lifestyle, health and sport relatedcable channels, or during popular sporting events on networkTV. The media test is designed to focus on the appropriate demographics and may, for example, include a large city on a weekend afternoon sports channel and a medium city on a week night lifestyle channel. Since each geographic and media channel market is tracked with a different toll-free number, accurate media response data is generated. Afterthe media test is complete, the Company then creates anairtime strategy to address the most appropriate markets.

 

Infomercialsand advertorials are effective due to the ubiquitous natureof cable and TV viewers. In a weak economic environment,TV and cable offer inexpensive entertainment options, and as a result viewership is strong. According to the Company, industry analysts project continued growth in the TV, film and media markets. As a result, television is still seen as a preferred media for advertisers.

SUMMARYOF RECENT EVENTS

 

MuscleFlex Inc. Attends 2009 Reverse Merger Conference in Las Vegas

 

June 10, 2009 - Muscle Flex Inc. announced today that MonarchyCapital, Inc. will represent the Company at the ReverseMerger Conference 2009. "The Reverse Merger Conference isa perfect venue for Muscle Flex Inc. to interact with thekey decision makers and knowledge experts in the alternativepublic offering space," said Danny Alex, CEO of Muscle Flex."We look forward to introducing Muscle Flex Inc. to a wide range of investors, as well as discussing our near-term catalysts for growth.” Muscle Flex Claims Victory Over the World Wrestling Entertainment (WWE) “RAW” Trademark Disputein Canada Beverly Hills, CA – June 16, 2009 – Muscle FlexInc. announced today that it was successful in defending its “In the Raw®” trademark against the World Wrestling Entertainment (WWE) “RAW” trademark application 1,1508,018,which ends a multi-year dispute between the “In the Raw”and “Raw” trademarks in Canada.

 

In June 18, 2008, the CIPO (Canadian Intellectual PropertyOffice) issued a final decision that found certain wareslisted in the WWE “RAW” trademark application 1,153,018were confusingly similar and thus lacked distinctivenessfrom the "In the Raw" registered trademark, which MuscleFlex is in the process of acquiring. The WWE appealed the CIPO`s ruling to the Federal Court of Canada, but failed to file the required documents by the deadline. On April 22, 2009, a Notice of Discontinuance was issued by the Federal Court of Appeals of Canada that formally ended the multi-yeartrademark dispute. The registered wares and services for"In the Raw®" in Canada are listed in detail on the MuscleFlex corporate website at www.muscleflexinc.com . With the Federal Court ruling, Muscle Flex can confidentlymove forward its branding strategies for the `In the Raw®`trademark and enforce ìt`s rights associated with the waresand services legitimately owned. Muscle Flex Inc`s portfolio of trademarks provides the company with significant leverage in maximizing sales and distribution channels and hence, brand optimization. The company plans to continue to protectand strengthen its intellectual property position to sustainits unique competitive advantages.

 

MuscleFlex Inc. To Introduce Three Value-Priced Consumer Products--Deploying a Low Cost Pricing Strategy to Maximize Sales Potential Using Direct Response TV-- Beverly Hills, California – June 18, 2009

 

MuscleFlex Inc. announced today that it plans to introduce threenew products priced between $9.95 and $14.95 that caterto today`s value conscious consumer. The three productsare devices used respectively for home security; personal grooming and pharmaceuticals. Muscle Flex is in the process of developing and implementing short (1 to 2 minutes) direct response television spots to sell each product using the popular “As Seen on TV” icon.

 

The new products are priced at the low end of the pricing scalefor `As Seen on TV` offerings. While benefiting the consumer,this low-price strategy is also fiscally prudent. Smallerlower priced products can be quickly introduced and marketedover a fixed cost base, while limiting the financial risks associated with larger product manufacturing. Upon completion of each television spot, Muscle Flex intends to run a series of tests in selected national cable and local network televisionstations. Final product testing and supplier reliabilityis being confirmed, along with scripting and filming ofeach short form spot. Muscle Flex intends to roll out eachproduct in stages in order to ensure maximum sales and visibility are attained for each product.

 

Acknowledgementto Grass Roots Research: http://www.grassrootsresearch.com/

 

MuscleFlex, Inc.

499 North Canon Drive Suite 400 Beverly Hills, CA 90210 http://www.muscleflexinc.com Phone: 310-467-5556 Fax: 310-887-7001 E-mail: muscleflex@live.com

 

SafeHarbor Statement

 

Certainof the statements made in the profile constitute forward-lookingstatements within the meaning of the Private SecuritiesLitigation Reform Act of 1995. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparableterminology. Such statements typically involve risks anduncertainties and may include financial projections or informationregarding the Company`s implementation of SOX 404. Actualresults could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions, variations in cash flow, reliance on collaborative partners, risks associated withrapid technological change, and the potential of introducedor undetected flaws and defects in products, and other riskfactors detailed in reports filed with the Securities andExchange Commission from time to time

 

This profile of Muscle Flex™, Inc. release contains forward-lookinginformation within the meaning of Section 27A of the SecuritiesAct of 1933 and Section 21E of the Securities Exchange Actof 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-lookingstatements by definition involve risks, uncertainties andother factors, which may cause the actual results, performanceor achievements of Muscle Flex to be materially different from the statements made herein.

...

 

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