US Stem Cell Inc (USRM)

[Dragon Lady]

Quote, "Yep, the only way out of this mess is to place the company into receivership. Northstar can then attempt to conduct a forensic audit and hold the management and other directors legally responsible if anything is found, and/or then place the company into bankruptcy, and wipe out the debt and common shareholders. Then issue news shares held by the preferred (Northstar) in order to sell the remaining shell to a company looking for a reverse merger to enter the U.S. public markets.

Total mess anyway you look at. "

Yep, totally agree. "TOTAL MESS" is probably the "light weight" version of how bad this mess really is.

I'd guess it's gonna be that scenario you describe, or some variation close to that. Something that gets Northstar free and clear as the "guarantors" (bagholders) of very large debts and out from under this crumbling mess.

Which as you state...the way that would seem to "work" seems likely to be some variation on the Receivership/BK scenario as about the only way I see that happening. Barring someone willing to pony up enough cash to buy-out the Northstar debts they are securing as the "guarantors" but I just don't see who would be willing to sink what I believe (have to look at SEC filings again) what I believe would be maybe MINIMUM like $1.2 MILLION to maybe as much as $2 MILLION needed to get Northstar totally "free and clear".

I mean who the H is gonna sink even $1 MILLION CASH into a company w/ a market cap of about $60K now, AND, one that would still be loaded w/ tremendous "other debts" owed, even if one could get the Northstar and old bank debts bought-out and erased ?? I mean they'd need to find a real sucker or someone who sees parting with their cash waaaay, waaay, way different than myself or anyone I know, LOL?

Nope, I don't really see any other scenarios, not that I can figure out, other than something pretty close to what you outlined. Could be totally wrong, but I'd say it's very realistic that something along those lines goes down here before too much longer.

I mean the market cap and ability to borrow from hard money lenders like PowerUp Lending Group and even from the worst of the worst toxic, convertible debt lenders, eventually even all that sorta just dries up as the share price and market cap approach literal ZERO. Which at this point, appears to be happening pretty rapidly.

It's in the ER, it's on life support, it's about to flat-line on the table looks like to me. Yepper, that's all I see...no miracle "light at the end of some fantasy tunnel" or whatever. Just prolonging imminent death at this point seems to me...trickling out the convertible debt money destroying all common shareholders including any "value" Northstar once had, paying law firms by the truck loads of cash...while slowly bleeding out.

AND...ALWAYS gotta remember why a NEW LOW like .002 today is so, so, so important to a train wreck mess like this one. Because ANY NEW LOW sets the next TOXIC, CONVERTIBLE DEBT PRICE JUST THAT MUCH LOWER based on the steeply discounted, "floating" conversion formula used by Magna, Fourth Man, Daniel James, etc. THE LOWER THE SHARE PRICE GOES, THE MORE DILUTION SHARES A TOXIC LENDER GETS when they call up to "convert" each round. Then sell/dump and wash, then rinse, then repeat...LOWER IT GOES...the "death spiral" scenario as outlined by the Bloomberg article:

http://www.bloomberg.com/news/articles/2015-03-12/josh-sason-made-millions-from-penny-stock-financing

https://www.bloomberg.com/view/articles/2015-03-12/death-spiral-convertible-financier-has-a-lot-of-fun

Not pretty....nope.