US Stem Cell Inc (USRM)

[Dragon Lady]

2 BILLION shares were authorized by the BOD and Sr Mgt- WHY would they supposedly R/S split the stock now??????????????????????????? (a total myth IMO)

http://www.sec.gov/Archives/edgar/data/1388319/000114544314000633/d31331.htm

Quote PAGE 2:

"Ratification of the increase of the authorized shares of capital stock of the Company from nine hundred and fifty million (950,000,000) shares of common stock and twenty million (20,000,000) shares of preferred stock, both $.001 par value respectively, to two billion (2,000,000,000) shares of shares of common stock and twenty million (20,000,000) shares of preferred stock, both $.001 par value respectively, effective as of the filing of an amendment to the Company's Articles of Incorporation with the Florida Secretary of State."

WHY would they have authorized 2 BILLION shares (and now have about 800 MILLION share O/S, not even the 950 MILLION they had authorized prior to that Form 14 being filed in mid 2014, IF THEY WERE GOING TO R/S the stock?????????? WHY? There's ZERO proof that a R/S is "imminent" in this stock- NONE. Purely made up out of the thin air IMO. They haven't even hit the original 950 MILLION authorized yet and they upped that to 2 BA BILLION shares, so why would they R/S NOW? Why? MAKES NO SENSE, NONE???????

An R/S is almost always a sign of extreme desperation in failing companies (usually one of the last ditch efforts as the common shares decline to triple low double or even triple ZEROES)- that's about the only reason a company ever REVERSE splits a stock. Successful companies FORWARD split the stock and only to "make it more affordable" - as when the share price gets so high that's it's hard for a small investor to buy even one or two shares of stock examples being Apple, Google, Netflix, Microsoft etc where it would have cost $1000 a share or more for ONE SHARE OF STOCK if they had not FORWARD SPLIT the stock. By contrast, Warren Buffett has chosen to NEVER FORWARD SPLIT his Berkshire Hathaway shares, one of the most successful companies in the history of planet earth- and they trade for what, $40,000 A SHARE, ONE SHARE, something like that- I haven't even looked at the price lately.

A split, forward or reverse has ZERO effect on "the business" - the market cap DOES NOT CHANGE nor to any financial data, cash situation or anything else.

The split is a "neutral" event to all parameters of the company EXCEPT the share count- it's adjusted for by either increasing or decreasing each individual shareholder's holdings, so as to keep the market cap the same.

On a 100:1 REVERSE SPLIT as an example- if one held 10,000 share before the split and the company had 800 MILLION shares prior to the split:

When the split is complete the shareholder would now only have 10,000/100 = 100 shares and the company would now only have 800 million /100 = 8 MILLION shares O/S

NOTHING ELSE CHANGES. The stock "might" get a little more volatile because of the lower float as one possibility- but in reality, NOTHING ABOUT THE COMPANY CHANGES when splits are done, forward or reverse, they're neutral events.

http://www.sec.gov/answers/stocksplit.htm

https://en.wikipedia.org/wiki/Stock_split

NO INDICATION TO ME this stock is going to R/S anytime soon- not until more dilution happens, which is on-going and continual for all intents and purposes. But they have not even hit their original 950 MILLION prior authorizes share limit and the BOD picked 2 BILLION shares as the new limit- so why would they R/S now, a sign of increased weakness of the company?

Makes ZERO sense to me- just pure conjecture IMO.