Look at just the $205K note, what the share price is to Magna. Staggering IMO. (guess not surprising to see this S-1 released on a Friday, after market close)
From the S-1, just filed, PAGE 14:
"31,000,000 shares of common stock that we may issue to Magna upon conversion of the Convertible Note;"
"We will not receive any proceeds from the sale of shares by the selling stockholder. However, we have received gross proceeds of $205,000 from the sale of the Convertible Note to Magna"
So, they, BHRT only receive $205K for the note, but it cost them 31 MILLION shares. So what did Magna just pay for those shares (the question was asked, what would someone pay for shares? Or what are shares worth, as they are worth whatever a buyer is willing to pay- well what was Magna willing to pay?)
$205,000/ 31,000,000 = 0.006. Yep, 6/10ths of ONE CENT is what Magna was willing to pay to give BHRT a pittance of $205K dollars. This IMO, is going to have a share price crushing effect. 31 million ultra low priced shares, now going to become free trading.
How bout some perspective on what how much $3 million over 24 months + $205K will do for BHRT?
Well, the company just finished the past qtr with $46K total cash left. Essentially cash broke. And they spent almost nothing on R&D, aka "trials" for that entire qtr, maybe $3K or so per month, total R&D spending.
But what's their biggest expense on their expense line entries? Salaries and bonuses for just two people, that's what.
Just the base salary and bonus for 2 people is now = $525K + $250K + $500K (bonus) + $300K (bonus) = $1,575,000. Yep, ONE MILLION FIVE HUNDRED and SEVENTY FIVE THOUSAND dollars, salary and bonus for just 2 people.
This credit line ($1.5 million per yr, if max amount is drawn down, which would = massive share dilution and IMO, bury the share price, even lower than its 1.5 cent level) and the $205K "note" = $1.75 million, just barely enough to cover the salaries for two people. That's not counting lease, utilities, insurance, legal and all the other basic overhead expenses on the expense line. Let alone spending one time on the "trials".
BHRT has already, in a blink essentially, diluted over 40 MILLION low priced shares to Magna. 31 MILLION for the $205K "note" and then over 9 MILLION in just up-front "fees" for the "credit line" and they, BHRT had to already set aside another 15 MILLION shares to cover expected "additional fees" to Magna. That right there would be 55 MILLION shares of dilution to Magna for just $205K, w/o one DIME yet being "drawn down" on the $3 million over 24 month "credit line". Staggering IMHO. Just mind blowing. Shares flowing out like water, and low, low priced shares at that.
IMO, this will have little to nothing to do with the "restarting" or "funding" of the key "trials"- I just don't see how that's gonna be possible. BHRT already owes a good chunk of this money in just promised bonuses to just two of the four full time employees ($800K, see last 10-Q, the promissory note has already been issued to them)
That's some "due diligence" in my opinion. Perspective.
