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Almost 1.5 hours into trading day, NOT so much as $1 traded? Wow.
http://www.otcbb.com/asp/Info_Center.asp
That can't be good, IMO? Volume has dropped to near nothing again. Yesterday was maybe 200K shares total for the day and it closed red, almost hitting the 1.5 cent mark.
All the good news, the 10-Q with the "revenue" and all these PR releases and all this "stuff" going on- and it's at 1.5 cents and a market cap now of about $8 million. PR and news just doesn't seem to move the needle on this at all anymore? Strange it seems?
An $8 million market cap now, which is less than the $10 million in debt just reported on the 10-Q? What's going on with this one? This might hit one cent before year end the way it's been trading lately, IMO.
I sure don't get it?
Wow, several more TOXIC, convertible note deals done- just recently. All this reported "revenue", but they just did several more, convertible debt deals as recent as early Oct (about one month ago) with horrible, extremely stiff terms IMO.
They must really, really be desperate for cash IMO, when one looks at the amount of cash brought in on these toxic note deals, yet they, BHRT were willing to accept such horribly stiff financing terms? (and then they still finish the qtr with a paltry $46K cash left on their cash account line?).
Latest 10-Q (filed today), period ended Sept 30, 2104, PAGE 26: (qty-3 more toxic, convertible debt deals and these are whoppers IMO. We knew about the Magna deal from the PR, but not the other two, holy cow)
"NOTE 13 — SUBSEQUENT EVENTS
Subsequent financing
KBM Worldwide
On October 6, 2014, the Company entered into a Securities Purchase Agreement with KBM Worldwide, Inc., for the sale of an 8% convertible note in the principal amount of $38,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on July 8, 2015,. The Note is convertible into common stock, at holder’s option, at a 45% discount to the lowest daily trading price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal and accrued interest at 150%, and any other amounts.
Daniel James Management
On October 3, 2014, the Company entered into a Securities Purchase Agreement with Daniel James Management, Inc., for the sale of a 9.5% convertible note in the principal amount of $25,000 (the “Note”).
The Note bears interest at the rate of 9.5% per annum. All interest and principal must be repaid on October 2, 2015. The Note is convertible into common stock, at holder’s option, at a 47% discount to the lowest daily trading price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal and accrued interest at 150%, and any other amounts.
Magna Equities, LLC
On October 7, 2014, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with Magna Equities II, LLC, a New York limited liability company (“Magna”). The Purchase Agreement provides that, upon the terms and subject to the conditions set forth therein, Magna shall purchase from the Company, a senior convertible note with an initial principal amount of $307,500 (the “Convertible Note”) for a purchase price of $205,000 (an approximately 33.33% original issue discount). Pursuant to the Purchase Agreement, the Company issued the Convertible Note to Magna. The Convertible Note matures on August 7, 2015 and, in addition to the approximately 33.33% original issue discount, accrues interest at the rate of 12% per annum.
The Convertible Note is convertible at any time, in whole or in part, at Magna’s option into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), at a fixed conversion price of $0.01035 per share. $40,000 of the outstanding principal amount of the Convertible Note (together with any accrued and unpaid interest with respect to such portion of the principal amount) shall be automatically extinguished (without any cash payment by the Company) under certain conditions described in the Purchase Agreement. In connection with the execution of the Purchase Agreement, the Company and Magna also entered into a registration rights agreement (the “Registration Rights Agreement”). Pursuant to the Registration Rights Agreement, the Company has agreed to file an initial registration statement with the SEC to register the resale of the Common Stock into which the Convertible Note may be converted,"
So in addition to the Magna "note" at 12% with basically 1 cent shares being involved, for about $200K dollars, they also, in early Oct. took on qty-2 more toxic (floorless) convertible debt deals- one for a measly $38K with KBM Worldwide (whoever they are?) and the 2nd back to ole Danial James again, for a measly $25K. Why, with all this "revenue" blah, blah, blah and "deals" and all- are they tapping the worst of the worst financing a company can use, and for total of $38K + $25K = $63K dollars? Just to keep paying their salaries and bonuses and other common bills? Highly dilutive "notes" at horrible terms, for what's essentially a pittance of cash, yet they have mega steep share discounts on um (45% and 47%) and will result IMO in more huge amounts of cheap share dilution going to the selling block and crushing the share price down, more than likely.
Just look at the KBM and the Daniel notes and the share discounts- if they, these finance houses, if they can hold the price at around 1.5 cents as it is now, then convert at 45% and 47% discounts (almost 50% off) they could get shares at like 8/10ths of ONE CENT or .008 cents each. What would those do to the common share price, if they got several million shares in that prices range?
At .008 per share, it would take issuing 4,750,000 shares just to pay off a lousy $38K dollars on that note. $38,000/.008 = 4,750,000
That's what toxic, convertible debt deals do to the common shares.
What happened to Cassel and the ole "mezzanine deal" and blah, blah- all that jazz? They, BHRT, IMO, are just doing the same old, same old routine of tapping the convertible debt guys, for the worst of the worst kind of financing a company can scrape together- and at just horrible terms that will result in massive dilution and millions and millions of more dirt cheap shares hitting the sell block down the road, the way I see it.
Wow IMHO.
Wow, no bid support in here at all it seems? Volume just picked up quite a bit and it dropped below .016 into that .015x range.
Major technical weakness, despite all the PR and now the 10-Q being released?
It's way, way off the 50 DMA and the 200 DMA. Nothing seems to move it up at this point?
Also, another "odd" trade of 121 shares at .016 at 11:58 Eastern?
121 x .016 = $1.93 (I think that's not quite a medium cup of Joe at Starbucks?). Who would place an order for a $buck and 93 cents worth on an "up tick" (the green background on OTC level II, means it's an "up-tick" trade). Do they use that "up tick" so they can set up a short maybe?
I have no idea, but it sure looks odd as heck IMHO.
ONE single 5K share trade at 1 second after 9:30 AM Eastern so far. Then nothing? On the big day they release the 10-Q filing?
That seems a bit "odd" IMO?
5000 X .0166 = $83 bucks worth. One hour into trading day, $83 bucks worth after the 10-Q filing is released?
Oh well, stranger things have happened I guess with this one? Will have to wait and see?
Fascinating 10-Q line about the ole "SOUTH AFRICA" big "new facility" and "joint venture" and "first patients" being "treated" and all- remember those big "PR" releases?
http://www.marketwired.com/press-release/bioheart-announces-joint-venture-in-south-africa-otcbb-bhrt-1923668.htm
http://www.marketwatch.com/story/bioheart-announces-successful-grand-opening-of-facility-in-south-africa-2014-09-24
Remember- they had a "GRAND OPENING" and supposed "cryo preservation" services and "facilities upgrades" were made and what not? Seems like that's what I remember from all the PR. There was more PR than just those two links above.
So, how does this statement in the 10-Q make any sense? Makes no sense to me, in my humble opinion of course? I find it very, very "confusing" to say the least?
Just filed 10-Q, period ended Sept 30th, 2104, PAGE 23:
"We announced a joint venture in South Africa and the facilities called “South African Stem Cell Institute” were successfully opened in September, 2014 with the intention to retain a 49% ownership of the new entity. As of September 31, 2014, however, there was no formal legal entity established and no formal operating agreement for this joint venture. In additional the Company has not yet incurred any material expenses associated with this venture. Management has concluded that as of September 31, 2014 this announcement is not material to the Company’s financial statements."
Huh? What? The PR said it was a "done deal", there was no wording about some "intention" or whatever? How can that be? How could there be no "legal documents" signed or whatever when the PR said it's a "done deal" and that they were "treating patients" already and that "facility upgrades" were taking place, etc??
Does that match the PR? Really? That item is extremely "odd" to me. Beyond "odd" IMO??
Figures it would be a Friday release IMO, what I expected (at least it's before market open, and not the close). Time to give it a quick read- hit the highlights.
Page 1:
"As of November 6, 2014, there were 558,942,523 outstanding shares of the Registrant’s common stock, par value $0.001 per share."
So that's up from prior 10-Q page 1:
"As of August 1, 2014, there were 517,272,472 outstanding shares of the Registrant’s common stock, par value $0.001 per share."
So that's some still, pretty furious dilution taking place, about 90 days, 3 months-
558,942,523 - 517,272,472 = 41.6 MILLION shares more dilution for another qtr. Down just a bit I think, will have to check. I think it was closer to 50 million for prior qtr?
Lets see what fully diluted is? HOLY COW, big jump there- I think that's from all the underlying derivative "Stuff" they hand out, convertible debt "financing" and what not.
Page 9:
" Fully diluted shares outstanding were 659,543,477 and 323,296,916 for the three months ended September 30, 2014 and 2013, respectively and 605,015,919 and 336,682,241 for the nine months ended September 30, 2014 and 2013, respectively"
Passed the 650 MILLION share mark and a more than doubling of shares yr over yr. Wow.
Lets see what the cash situation is, given all that share dilution?
PAGE 4: OUCH, nearly cash broke again.
Cash and cash equivalents: $46, 592
Wow, no wonder they're tapping into Magna. $46K bucks, total cash left in the account, end of qtr.
Looks like debt/current liabilities actually WENT UP from just last 10-Q filing? All this great "revenue" and stuff, and their liabilities are up and cash is down? Doesn't make much sense IMO, unless their expenses and spending are growing faster than money coming in, I guess?
PAGE 4: (this 10-Q, period ended Sept 30)
Total current liabilities: 10,336,315
PAGE 4: (Last 10-Q, period ended June 30, 2014)
Total current liabilities: 9,759,137
So their liabilities (with $46K cash left on hand) increased by:
10,336,315 - 9,759,137 = $577K. HALF A MILLION dollars increase in just 3 months, despite the "revenues"??? What's up with that? Their spending is outstripping any "revenue"??
Lets see what the "MEDICAL RESEARCH AND DEVELOPMENT" and "HEART TRIALS" company spent on R&D this qtr?
PAGE 5:
Research and development: 8,581
HOLY COW, they dropped R&D even more? (It was about $5K a month, prior 10-Q, so it appears they just don't do trials or run any R&D anymore IMO?) R&D total spending is not even $3K a month anymore?? And their twitter page and other places says something like they're the phase II/III LEADER in heart stem cell trials (something to that effect?) How is that possible? They spent less than $3K a month on R&D but claim to be a phase II/III "leader"? Doesn't make any sense IMHO?
Last quick check- the sales/general/marketing expenses (the big salary boosts, bonuses, etc)
PAGE 5:
Marketing, general and administrative: 1,512,706
Wow again, their costs have exploded. Wowy. $1.5 MILLION for the qtr for a company of 4 full time and one part timer? Holy smokes. It was growing rapidly already, but this qtr just blew it off the charts IMO. That line right there, if annualized would put just their basic spending at 4 X 1.5 = $6 MILLION per yr, far outstripping any revenue. Again, no wonder they're tapping Magna and quick IMO. That expense line is a mind blower IMO.
And lastly, the ole NET LOSS FROM OPERATIONS. Looks like it's INCREASED BOTH qtr over qtr again, and YEAR OVER YEAR. They're burning more money than they take in.
PAGE 5: (this 10-Q, period ended Sept 30)
Net loss from operations (1,466,732)
Lost $1.4 MILLION in just this qtr.
Net loss from operations same qtr 2013: (1,067,153)
So they just lost about $400K MORE this qtr, than the same qtr last yr, despite the "revenues"??
How bout net loss from operation for the 9 months total of this yr versus last year?
PAGE 5: (For the 9 months ended Sept 30, 2014, versus 2013)
Net loss from operations (2014): (2,545,703)
Net loss from operations (2013): (2,190,385)
So they are LOSING MORE MONEY through this 9 month period so far, despite "revenues".
And lastly, the GOING CONCERN (which show no signs of abating or vanishing IMO)
PAGE 12:
NOTE 2 — GOING CONCERN MATTERS
"The accompanying unaudited condensed financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying unaudited condensed financial statements, during nine months ended September 30, 2014, the Company incurred an operating loss of $1,247,199 and used $747,184 in cash for operating activities. As of September 30, 2014, the Company had a working capital deficit (current liabilities in excess of current assets) of approximately $10.0 million. These factors among others may indicate that the Company will be unable to continue as a going concern for a reasonable period of time.
The Company’s existence is dependent upon management’s ability to develop profitable operations and to obtain additional funding sources. There can be no assurance that the Company’s financing efforts will result in profitable operations or the resolution of the Company’s liquidity problems. The accompanying statements do not include any adjustments that might result should the Company be unable to continue as a going concern."
Wow. A lot there, will have to read in detail later. But pretty clear IMO why they had to go to Magna.
Last couple quick things to check- lets see where that big bonus to the CEO and CSO went, the $800K
PAGE 18:
"On July 1, 2014, the Company issued an aggregate of $800,000 promissory notes to officers and employee in settlement of accrued compensation. The promissory notes bear interest of 5% per annum and due on January 1, 2015."
Pretty much figured that one- as is their typical "procedure", IMO, they gave um a "note" which of course is now earning INTEREST and is "owed" to them. No surprise there IMO. Pretty nice in this low interest rate environment to be earning 5% interest on what's basically like a "CD" owed to you, IMO. Not bad.
And, lastly, it's always good IMO, to give a quick check on how they've been issuing out common stock shares- they usually pour um out like water, IMHO.
PAGE 27:
"Subsequent issuances
On October 3, 2014, the Company issued 514,886 shares of its common stock as payment of $70,521 interest on its Northstar (related party) debt.
In October 2014, the Company issued 1,818,182 shares of its common stock in settlement of $20,000 of convertible debt.
In October 2014, the Company issued 1,293,103 shares of its common stock in settlement of $15,000 of convertible debt.
In October 2014, the Company issued 2,260,764 shares of its common stock in settlement of $18,000 of convertible debt and accrued interest of $2,120.
In October 2014, the Company issued 552,846 shares of its common stock in settlement of $5,500 of convertible debt and accrued interest of $1,300.
In October 2014, the Company issued an aggregate 2,773,549 shares of common stock for consulting services.
(Notice- it doesn't say to who, or for how much? What "consulting services"? What was the billed amount so one can figure out the price of the shares they received?)
In October 2014, the Company issued 538,875 shares of common stock in settlement of accounts payable."
So, per their usual, they're "paying the bills" and all kinds of "other STUFF" using common shares of stock. Not CASH, but just issuing out shares, almost 10 million or so of them, as usual.
I'll give it a more detailed read later. Looks pretty much par for the course for BHRT, IMO. All the usual "stuff" that I've seen in all their past filings pretty much. Nothing new here IMO.
100K shares just went off at .0166 at 14:05 Eastern, about 45 minutes ago.
Another odd-ball day pattern of trading today so far, IMO. Ran it up on an enormous spread and now appear to be selling right back into that strength.
Just like clock work IMO. Someone's playing this for the big boy(s) I think. Looking at the level II trades and the spread and time gaps between trades is fascinating to watch. They got it all the way up to .0189, then is sat for 1 hour, almost to the minute w/o a single trade posting. Then it posted a single trade, then sat again for almost 2 hours w/o a single trade, then a burst of a bunch of trades of 5K or 10K blocks or so.
Now, about 45 minutes ago they just tanked it back to .0166 on a single 100K block trade.
I don't think that's all "retail" trading IMO. What exactly is it? I have no idea? But sure doesn't look like normal, back and forth, "retail" trading and matching of just regular folk's buy and sell orders IMO.
Totally "working the spread" this AM, WOW!
It posted a trade of 450 shares at .0167. (.0167 X 450 = $7.50 Yep $7 dollars and change).
It then rapidly (less than 30 seconds later) turns and posts a trade at .018 (an enormous spread/jump) and then about 1 minute later posts another trade at .0189.
Holy cow, someone, some trading desk is "working" this thing and playing it like a fine, Stradivarius IMO.
No way a 450 share trade is some "retail" trade IMO. And then they boost it up supposedly 11% in a blink, after collapsing it like 14% the day before on similar micro trades.
YANK AND BANK all over the map. But still very low volume and in a strong, technical weakness and sustained down trend.
All the "big PR" and good news and what not and it's now back to a sub 2 cent stock and the market cap has been cut significantly. Seems like PR can no longer move it much IMO. It's now at the hands of enormous, continual amounts of low priced dilution shares and continual, years of non-stop use of convertible debt shares the way I see it.
"And it's strange to me how the majority of the time there is 10,000 on the bid and 10,000 on the ask day in and day out. "
What I find even more interesting than that, is go to the OTC site level II which shows all the actual closed/posted trades with 15 minute delay.
You'll see like typical 10,000 shares maybe 8K, 30K, maybe a 90K block will pop in, then suddenly it'll be dropped on like a 100 share trade posting. Sometimes some odd-ball tiny number even like 368 shares or 139 shares or something posted, usually on the lower bid. Today there's one showing for 4999 shares. Not 5000, but someone bought or sold 4999 shares? Really? One more share would cost 1.8 cents to make it an even 5K but they didn't have the money in the account or something?
Go look now at today. Normal size trades like 10K, 5K (which would be about 10K X .018 = $180 bucks worth, still a tiny trade, but seems reasonable probably for a retail OTC buy/sell amount, it's within realistic range)- but then, suddenly, all in a row:
400 shares, then 100, then 400, then 400, then 800?? Makes no sense IMO. I mean 100 shares at .018 = $1.80 cents worth? Who would do a trade for a $buck and 80 cents and why?
Watch the end of day each day, that's when it really gets odd too IMO. Might end up after 30 or 45 minutes w/o a single trade going into the end of day, then end with a single, tiny trade either to push it up or push it down on a large spread. Same on open. And then the flat-lining, the 30 to 45 minutes to sometimes 1 hour or more gaps where not a single trade gets posted- meaning to me, they're really not "trying hard" to match buyers and sellers on a decent spread and get orders to fill sometimes perhaps, which would make volume much lower maybe??
http://www.otcbb.com/asp/Info_Center.asp
Put BHRT in the quote box. Then use the "Depth/LII" pull down tab- all the trades that posted are there, 15 minutes delayed.
That OTC quote box shows a red background on certain trades, then green on certain trades and then white on some. I'm trying to find out what that means? Going to search or email their help tab. Does red background mean short or below bid (or on a down-tick?) and green means at the ask or "up-tick" and then what would the white background mean? I haven't figured it out yet?
"$1.00's we would be great .. IMO the short term will see double digits.."
Does the "double digits" mean zeros after the decimal, or going the other way? I'm not sure I understand the term "double digits"??
Cause it's at .0171, maybe .018 this AM, down 10% to 14%? It's not holding even 2 cents after big "financing" news and PR.
Any updates on the "short term"? What would be a best estimate? How many years away is "short term"?
I-hub ticker not updating? It's DOWN 14% right now, ticker above shows .0199?? BHRT is actually at .0171 right now, as of 10:37 AM Eastern, per the OTC site.
It just sold off a good size set of chunks, equal to over 200K shares at .0171.
It's sitting at .0171 right now according to two other sites I checked, down 14%.
Maybe I-hub ticker feed is still having some tech problem like a few days ago?
What's interesting too, IMO, is it just dumped off a bunch of trades at .0171, down 14%, most in blocks like 20K shares, 10K shares, a 90K share block, then suddenly it prints a 100 share trade going off at .0171? Looking at the OTC site, level II delayed.
Again, who would post a 100 share trade at .0171? That's .0171 x 100 = $1.71 cents worth. Basically a cup of coffee?
It was interesting reading the profile, I believe it was Magna, who said something like (paraphrasing) we can handle clients trading needs via our trading desk, including the ability to make very small, or micro trades as needed, blah, blah, blah. Something like that? I'll have to find it- I'm pretty sure it was in relation to Magna? I read it on one of these recent BHRT "deals" and PR releases or filings, then went and read the profile of the firm involved, and that's what their web page said.
A 100 shares block would sure seem like some pro trading desk or something IMO? I highly doubt some E-trade person or something would be pasting a 100 share sell order, for $1.71 w/ a $9.95 commission, or that E-trade would break a block trade down into increments that small, that they equal a buck seventy one worth? Makes no sense IMO?
Down 10% again this AM? What's wrong I wonder?
I mean all the good news that was being waited for, for so long has just kept coming, correct?
The big "financing" (I guess it's the "big" one), that big PR went out about Magna and it was stated it would make this go up huge? But it can't hold even 2 cents a share?
There was the big PR about the 12 month trial results or whatever that one was?
There's the big PR's (several) about these 2nd tier or 3rd world "clinics" or whatever they are- I can't remember the location or name or place of the last one, but I know there's been a lot of those PR's?
Even a recent PR about another appointment to some Florida commission or whatever (or was it an "award", I can't remember, will have to check it again)
I don't know? Why's it under the 50 DMA, the 200 DMA and all the recent predictions about huge, upward price movement just don't seem to be gaining any traction?
Gosh, the market cap is back down at like $9.3 million or something this AM. That's like the same as their debts right now?
Is it just massive dilution and use of convertible debt that's too much to overcome? Just too much low price share overhang? Or just selling in general? I just can't figure out what's keeping it now in a down-trend under the 50 DMA and the 200 DMA and especially under 2 cents now, when all the highly touted "good news" seems to just be flowing out continually?
Very odd IMO, this pattern this one is in? Not sure what to make of it? It would need to break several barriers now, for a length of time and on sustained volume to even get back into a slight uptrend?
Interesting IMHO?
Opened down at .0171 on a single trade of 5900 shares (5900 x .0171 = $100 bucks worth)
Got the spread wide open at .0181 bid and .02 ask. Like they're really, really trying to hold and cap this right at that .02 magic number for some reason?
Right when all this Magna "financing stuff" is going down?
Interesting IMO.
"STILL HOLDING OVER 200% GAINS AS OF TODAY??"
Not sure that holding a 200% "gain" (really closer to 150% gain, 2.5 X .0063 = .01575) off an all time low of .0063 (6/10ths of one cent away from ZERO and BK) not sure if that's much of a win?
Not when the common shares have lost 99.59% on the longest term chart, beginning w/ 2008 IPO and having passed through the period of one of the greatest bull run stocks markets, in all of market history.
Kinda a play on the real story/reality IMO. Also leaves out a kinda important fact like the massive dilution to the common shares since 2008:
When BRHT when public in 2008 it had about 14 MILLION shares total outstanding.
2008 10-K filing, page 1:
" The number of shares outstanding of the registrant’s Common Stock, $0.001 Par Value, as of March 17, 2008 was 14,447,138."
Within 1 yr, those shares had collapsed to about $1 per share and the stock was delisted from the NASDAQ and sent to the land of the penny OTC.
It's now traded at around 1.5 cents, maybe a recent 2 cent high approx, with a lot of time spent in the 1 cent range late 2013 and early 2014, before it dipped to the all time low of .0063 Dec 2013. It also traded a lot in the 1 cent range in early 2014, only now to return to the 1.5 cent range, not far from where it began the yr.
Diluted out now to about approx 517 MILLION shares (fully diluted shares now approaching probably 600 MILLION and climbing rapidly still, will know exact dilution number in next 10-Q filing).
Just since 2010 when the present CEO took over, the common shares have lost about 95% to 97% of their value approx. down from about .50 cents to .70 cents a share to a recent trading range of 1.5 cents to maybe 2 cents.
For producing that common shareholder loss and negative ROI,etc the CEO has just gotten a large base salary percentage increase to $525K per annual plus an annual cash "bonus" of $500K, pushing just the cash portion of his salary to $1,025,000 dollars per yr. Over $1 MILLION per yr, not even counting stock options and other perks he receives.
Pretty impressive IMO.
"Yup, amateurs..."
Yup, .0063 (6/10ths of ONE CENT) is all time low, relatively recent in DEC 2013. FACT.
Dilution: MASSIVE, FACT. A doubling (over 200 MILLION shares) in a one yr period and continuing at a rapid pace. O/S shares will be reaching close to, if not already over, 600 MILLION by next 10-Q due out in a few weeks. Authorized shares already increased to 2 BILLION to meet dilution needs, on-going. FACT.
Continual use of toxic, convertible debt "financing" with some of the most notorious names in the business, FACTS. Asher, Magna, Fourth Man, etc
Just FACTS IMO.
"could drive toward .0001 imo"
I'd guess anything is possible of course with a nano-cap OTC stock. The all time low for BHRT is .0063 (6/10ths of 1 cent) in Dec 2013, so it has hit the double zero after the decimal at least once so far.
Would it ever hit the .000X territory? Anything is possible I guess, IMO, given enough dilution and continual use of convertible debt for financing -from what I've seen with other OTC nano-caps. If they get it up in the billion shares area, who knows? I don't think reaching the billion shares O/S is far fetched at all given the pace at which they've been diluting.
All just my amateur guesses and opinions too.
"Mike and Comella are both still young and so why would they risk their careers with something that might not work out?"???
READ the latest compensation table, latest 10-Q filing. They just helped vote themselves (they make up 2/6th's (1/3) of the BOD, a huge series of percentage gains on a couple of base salary increases in the past 2 yrs and now a $500K CASH bonus for the one and a $300K CASH bonus for the other and boat loads of options. They're not hurting for anything. Why would one not stay when you're pulling down over $1 MILLION in total comp package while producing a near total wipe out of your common shareholders and other investors? Who else is gonna give you a gig like that except some OTC penny stock IMHO? Who?
2)"Magna is still putting money up and risking cash that could be used for more profitable ventures in my opinion. "???
Lending to cash poor, financially desperate penny stocks/companies is MAGNA'S ENTIRE BUSINESS MODEL- it's what they do, it's their "forte" and expertise. BHRT is their exact, core, key type company they loan to if you look at their history. Magna makes nothing but money on deals like BHRT- far, far greater returns than they'd make anywhere else typically. Where else does a "lender" on average make at least 50%, 100% maybe 200% or even 300% return on their money, often in a period of 6 months, maybe 1 yrs tops? Only payday loan joints, hard money lenders and maybe the mafia can get similar returns as far as I'm aware?
Again, Magna, Asher, etc are "hard money" essentially, aka lenders of LAST RESORT- they nearly always, only lend to cash poor, financially poor condition, OTC penny stocks- that's the business they're in. Their model is based on, and results in dilution, dilution and more dilution and discounted and cheap shares going up to be "flipped" and flipped quickly by the "lender". And in return for the risk they take, they build in all kinds of "provisions" and stiff "fees" and "discount formulas" and high interest rates, etc that essentially make them like the "house" in Vegas, making it nearly impossible for them to ever lose on a bet.
The LOWER THE PRICE GOES, the more money and more shares firms like Asher and Magna make. They essentially can't lose, short of a full up BK filing. When the stock is at .0001, Asher or Magna are often still receiving and then quickly unloading tanker ship loads of common shares, when the share count is finally at like 6 BILLION shares O/S or whatever. Read some of their case histories, right here on I-HUB. There's entire pages and threads dedicated to Magna/Hannover and Asher that show exactly how they do what they do and what happens to the underlying common shares in almost all cases.
My opinions- it's obvious why Magna lends to OTC penny stocks- cause they make enormous profits. No more complicated than that. Why do a couple of people stay at BHRT? Cause they're getting paid richly, no matter what happens to the stock or common share holders, no matter how poor the company performance or financials are, no matter what condition the financial stability of the company is, etc IMO.
"So you would hand over 3 MILLION dollars to a company that what you are saying is not going no where?? Ok, I don't think so."??
1) They (Magna) are not "handing over 3 million dollars" to BHRT. It's an EQUITY LINE, with limits on the "draw downs" that can be made, it's spread out over TWO YEARS, aka 24 months. Meaning the most BHRT can "draw" on it is $1.5 million per yr and that won't ever occur in a single "draw", subject to all kinds of limitations stipulated in the documents. This $3 million "line" was also preceded by a Magna toxic, convertible note deal, with some of the worst terms I've ever read, worse than Asher terms, for a lousy $200K or so dollars, on a note w/ a $300K face value. Why would BHRT take that deal and sign-on to it? Also, the $3 million credit line just came with a $150K min up front "fee" already taken-out in 9 MILLION dilutive, low priced shares to Magna. Again, they ain't in this cause they give a rat's behind about BHRT and what they do IMO, they're in it purely for money. Fast money and lots of it IMO. Look up Magna's reputation, a lot is written about it right here on entire I-HUB threads, Magna has sunk more companies than a WWII U-Boat sunk allied shipping, IMO.
2) There is ZERO analogy remotely close to what occurs on "Shark Tank". Share Tank is private "investors" (angel investors is the industry term) putting up THEIR MONEY for an EQUITY STAKE, to own a long term position in a company/person they believe in. The Shark then is a pure "partner" in the company and often even begins to assist it and help run it on a day to day basis and provide it backing and services for free- like access to the Shark's personal legal teams, personal biz contacts, etc. They're not getting quick, common stock shares they can instantly dump and sell onto a public market like the OTC? ZERO correlation to what Magna or Asher or similar do as their business. None.
3) $3 MILLION spread over 24 months is noise level money in order to complete even a single, FDA quality/level phase III trial (singular), it's not even a down payment. A typical FDA phase III trial takes well over a year, typical is year(s) plural and it is not unusual in the slightest to spend $10's and $10's of millions to complete ONE phase III, w/ $100 MILLION to several $HUNDRED MILLION dollars plus being far closer to an industry norm, spent on a single phase III trial. They, BHRT, just gave out $800K in "bonuses" to just two people two of their four total full time employees. That $800K alone will consume a decent portion of just one year's draw-down on this credit line, as BHRT has little, to no cash when those bonuses were handed out (finished prior qtr w/ $92K total cash in bank, against large short term debt like accounts payable in the millions) and they run huge cash deficits each qtr and each yr and huge losses from operations, including up to the last filed SEC report. BHRT also is still carrying a great deal of debt and debt service that must be paid first, before any trial or whatever, as default on any of its debts will sink the company.
Magna does not "hold" or invest "long term" in any company they get involved with- not that I've never read of, or heard of ever occurring with them. Read the $3 million credit line documents- it's loaded with wording that insures their shares, Magna's shares are "free trading" and can be sold instantly upon receipt, it's spelled out very carefully.
Imagine what one wants. All I can say, my opinion, is sit back and watch what happens as this plays out and this massive, even greater dilution hits this stock. My opinion, chance it works out well for the common shareholder, is slim to none. Magna is known as a share-price-crusher from all I've ever read or seen of companies that take money from them- including this exact product, the so called "Enhanced equity line" blah, blah, blah. Google it- and read about companies that are even suing Magna over it, their share price declined so rapidly- that's what my due diligence found when I looked into it.
Good luck of course.
"Its great to see funders continue to pump BHRT with positive cash. It seems evident that they believe in this company's future and where the technology is heading. Their patents are worth more and more everyday in my opinion!"??
1) The type of "funders" being utilized, Asher, Magna, Fourth Man, Daniel James, etc are known commonly as "lenders or money sources of LAST RESORT" and for the most part only lend to cash desperate penny stock companies. They offer the worst financing terms a company can get, aka "convertible debt" and stiff interest rates, and dilution, dilution and more dilution. They, these "lenders", IMO could care less about the company and don't "believe in the company's future", they only believe in making piles of money FAST and QUICK and w/ built in guarantees that they win, almost always, no matter what- like the house in Vegas.
2) If one reads the 10-K filings, most of BHRT's key patents are already expired or are expiring soon (as in maybe a yr or 2 more at the most). Everything else they license (they really haven't invented much of anything on their own, or original, they just license it from others, for example Adipocell, which not that long ago was named Lipicell. BHRT didn't invent it, they just pay a license to use it, someone else's tech). The 10-K also says that many "key" licenses regarding key products have also "lapsed". See last 10-K filing, end of yr 2013.
10-K:
"We hold limited patent and other intellectual property rights, and our success will be dependent in large part on safeguarding our existing intellectual property rights and obtaining patent and other proprietary protection for our product candidates.
We hold limited patent rights in our product candidates. Our MyoCath product candidate is protected by a patent, expiring in September 2017, in which we have an irrevocable co-exclusive license. Our MyoCell product candidate is no longer protected by patents, which means that competitors will be free to sell products that incorporate the same or similar technologies that are used in MyoCell without infringing our patent rights. As a result, MyoCell, if approved for use, may be vulnerable to competition in the form of products that use the same or similar technologies. We have previously licensed certain patents and patent applications relating to our MyoCell product candidate. These licenses have all lapsed as of the date of this report,"
Dubb, saw that- I'd probably hit click right as your post appeared. No worries. Was just pointing out the wording of the filing. $150K tapped for the Magna fees. The $3,000,000 at this point is indicated now as shares "registered" but yet to be "tapped".
I don't even think we'll know when BHRT "taps" the line until each 10-Q or 10-K filing comes out, like in the past with the Greystone line. Meaning, we'll always see how much they did or didn't "tap" and use of the credit like in the rear view mirror, always delayed about 3 months.
Once it's filed, registered and all- they can "tap" at will essentially, so we as common folks won't see anymore filing or anything if they choose to "draw" on the line. If they make an immediate draw, say in the next week or two, we might see it in this upcoming 10-Q, cause sometimes they amend last minutes events onto the bottom of the filing, as "add ons". So, if they make a first draw, maybe we'll see for how much and at what price on this upcoming 10-Q in a few weeks- will be interesting if they do, to see for how much money and then at what share price and how many shares of dilution it equals out to.
We'll see.
"if the remaining 3mil were sold in no more than 6 large blocks of 500k"??
Not how the draw-down works. Read the original 8-K and all exhibits. There's limitations on each draw amount- to draw it down that quickly would 1) CRUSH the share price IMO from massive dilution, meaning each subsequent draw would need enormously more amounts of shares to fill it and 2) Thus, most likely cause so many shares to dilute to put Magna over the 9.99% or whatever it is, ownership.
No way IMO, they draw anywhere near those amounts at one time. They had the Greystone "credit line" of $1 million in place for 24 months, exact same like this one essentially, so this Magna line is nothing new, not in the slightest. And BHRT never drew-down on that Greystone line anywhere near those amounts.
Most recent 10-Q filing, PAGE 13:
"NOTE 5 – STANDBY EQUITY DISTRIBUTION AGREEMENT
On November 2, 2011, the Company and Greystone Capital Partners (“Greystone”) had entered into a Standby Equity Distribution Agreement (the “Agreement”). Pursuant to the Agreement, Greystone had agreed to provide the Company with up to $1.0 million of funding for the 24-month period following the date a registration statement of the Company’s common stock is declared effective by the SEC (the “Equity Line”). The registration statement went effective on February 10, 2012. The Agreement automatically terminated on the first of April, 2014 (the first day of the month next following the second (2nd) anniversary of the Effective Date).
"
10-Q filing prior to that, Q-1 2014:
"NOTE 6 – STANDBY EQUITY DISTRIBUTION AGREEMENT
On November 2, 2011, the Company and Greystone Capital Partners (“Greystone”) entered into a Standby Equity Distribution Agreement (the “Agreement”). Pursuant to the Agreement, Greystone has agreed to provide the Company with up to $1,000,000 of funding for the 24-month period following the date February 10, 2012, the registration statement of the Company’s common stock was declared effective by the SEC (the “Equity Line”).
During this 24-month period, commencing on the date on which the SEC first declared the registration statement effective, the Company may request a draw down under the Equity Line by which the Company would sell shares of its common stock to Greystone, which is obligated to purchase the shares under the Agreement.
For each share of the Company common stock purchased under the Agreement, Greystone will pay eighty percent (80%) of the average of the lowest daily volume weighted average price for five consecutive trading days immediately preceding Advance Notice (the "Valuation Period") commencing the date an Advance Notice (the "Advance Notice") is delivered to Greystone in a manner provided by the Agreement. Subject to certain limitations and floor price reductions, the Company may, at its sole discretion, issue a Put Notice to Greystone and Greystone will then be irrevocably bound to acquire such shares. The registration statement of the Company's common stock pursuant to the Agreement was declared effective on February 10, 2012 and a Post-Effective Amendment was declared effective on May 7, 2013. On December 1, 2012, the parties to the Equity Line agreed that the Purchase Price be adjusted to seventy-five percent (75%) of the lowest daily volume weighted average price of the Common Stock as quoted by Bloomberg, LP, during the five (5) consecutive Trading Days (as such term is defined in the Equity Line) immediately subsequent to the date of the relevant Advance Notice.
During the year ended December 31, 2013, the Company issued an aggregate of 31,052,141 shares of its common stock in exchange for $346,914 draw down on the equity line. During the year ended December 31, 2012, the Company “put” 8,797,859 shares of common stock for a total of $150,000."
During the entire yr, 2013 they only drew-down $346K on that line and just that single draw, cost 31 MILLION shares of dilution in a single pop. Thus, to rapidly draw down $3 million worth, about 9 times that $346K , would dilute out to about maybe 300 MILLION shares minimum, well over 9.99% of the outstanding share count.
Not gonna happen IMO.
"Wow they sold all the shares at once?"??? NO. They "registered" the shares and SOLD $150K worth to pay the FEES TO MAGNA.
Other than that, not ONE share has been "sold" to generate one dime to BHRT yet.
Read the filing, it's clear and in black n white.
SEC Magna "credit line" registration statement "Form-D" looks like they just filed it, after market close, 4:35 PM on a Friday.
Shows $3,150,000 worth of shares, that's gotta be "the credit line"
Looks like the $150,000 portion, Magna's initial "fees" have already been taken out (sold it says). Leaving $3,000,000 remaining. That's 9 MILLION cheap shares ole Magna got up-front, first, and BHRT hasn't seen a dime yet. Getting the "feel" for how these deals work?
Interesting that this is filed first today IMO, but what about the Magna "convertible note" that was announced prior? I thought it stipulated that it needs a SEC filing statement or something to that effect too, as required by Magna? I looked and didn't find an S-1 or whatever form it would be? No new filings other than this one today? Too confusing for me to follow all these terms, and what must be "registered" or "exempt" or "form filed" or whatever? Guess it'll probably all be in this upcoming 10-Q, probably attached as amended down at the bottom exhibits, all these last minute deals and how many shares are issued and so forth.
But that $150K to Magna for just "fees" sure looks like it came out ASAP.
That's 9 MILLION more dilution shares at about 1.6 cents. Wonder what that's gonna do to the price going forward, near term or long term?
The volume has dropped way, way off now. And 2 cents seems like a hard ceiling now- kinda like that article posted this AM, very interesting. Like they're "capping it" off right at 2 cents.
Like perhaps some MM/broker needs it at 2 cents for whatever they need to accomplish (covering, closing out positions from the Monday run, all the possible stuff that article described in detail maybe?)
It's gonna be real interesting IMO to see the close again today. See if they "paint it" down red, on some micro trade like yesterday, minutes before the close. I'll check the level II OTC at 4:15 Eastern to allow for the delay, and see what the last trades of the day look like- size, price and timing.
Should be interesting.
So from Monday on 5 plus MILLION shares traded, running it rapidly up almost 50% in a single spike to .0248, we're now at Friday, basically back under, or right around 2 cents, with lows in the week dipped back to .0170 or so, and the total today so far is about
170K shares X .0190 (avg) = about $3,230 bucks for the day. That ain't much dollar volume. Way, way off again now.
Dubb, just as one more "interesting" point- look at the Asher link, thread built by these I-HUB members.
http://investorshub.advfn.com/~-ASHER-~-25451/
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68247638
Notice, it's not like the Asher guy (Curt Kramer, I think it is), not like he's an unknown or something (that I-hub member, and it was a while ago, linked "Asher" at that time to 800 plus "deals", imagine the money involved and "fees" alone he's making?) I'll bet the SEC and every legal agency related to stocks know this guy like the back of their hands. He, and similar guys like him always have some long trail- like they first set-up firm XYZ 15 yr ago, then it got shut down and maybe fined a few bucks, now he created his new firm ABC and has set up shop across town, or maybe across a state line in NJ or something with his ole partner Bob Smith or whoever. They're usually as slippery as Teflon IMO.
You know what I mean? It reminds me of the same problems local law enforcement have. They'll tell you like 80% or more of the crimes in your local area are done by the same 10% or maybe 15% of dudes who all go through the revolving door. Difference with places like an Asher is they're making to much freaking money, that "if" they are skirting any law(s), they have an army of the finest attorneys money can buy, so they have every "i" dotted and "t" crossed and even if they get a legal filing against them, they just tie it up in "motions" and legal maneuvers for years and years usually, while they keep operating, hauling in truck loads of money.
It reminds me of the stories of how the FBI and law enforcement finally got some of the old mob dudes. EVERYONE knew these guys were guilty as sin of everything from murder to running crime rings to pretty much every kind of crime under the rotten sun. But they, the cops, district attorneys, even the Federal FBI could never seem to get the top guys; they'd arrest um, the dude would be bailed out in like 4 hours via a lawyer with a suitcase full of cash, then they'd file legal appeals and he'd walk free in days. They always had layers of small time guys to take the rap, never letting the trail lead directly to them at the top, so it was very tricky to pin them directly to any one crime.
What ended up happening was some Federal bull dog cops, FBI type guys had enough of it with these "crime bosses" making a mockery of them. So they got "creative" and figured you can't nail um head on, they're more slippery than Teflon (think Asher IMO, as slippery probably as it gets, also you can't always blame them, they are often, walking a fine line of exploiting laws, legal laws passed by congress, that make shorting 100% legal and numerous other activities that may seem "wrong", but "technically" are legal on Wall St. if you follow a fine line), so they, the FBI and Federal and State's attorneys went "creative" and started looking for any law, no matter how obscure they could get these mafia guys on. Movies have been made about it. Long story short- don't know if you remember the history, but they ended up bringing down some of the biggest players using things like the IRS (tax laws) and the POSTAL SERVICE, interstate wire laws, money laundering stuff. So rather than put the dude away for murder, they got him locked up long enough for like an IRS or money wire transfer crime, put him away long enough that they figured he'd die in prison or emerge an old, broken dude at best.
There's a couple of info-mercial dudes of similar fame. The Feds or whoever would shut the guy down for hocking some vitamin "cure" scam. He'd do a little time, pay some fines, but still have like $20 million in the bank when he got out. He was barred by the court from ever doing info-mercials specifically related to selling "vitamins or health blah, blah" for life. So what's he do? He shows right back up on TV, selling FREAKING BOOKS, cause a book per the legal definition was not what he was barred from selling. Amazing.
http://www.people.com/people/article/0,,20536466,00.html
http://articles.chicagotribune.com/2014-03-17/business/chi-kevin-trudeau-sentenced-20140317_1_kevin-trudeau-global-information-network-guzman
So imagine if that guy can pull that off, imagine what the SEC is up against with these real, real smart finance dudes, teams of lawyers, electronic networks that move at light speed, billions and billions of shares traded at 100's of firms, it's daunting.
I think the SEC has to very carefully pick their targets, they go for the big ones of course, the Enrons and MCI and ole Berrnie Madhoff (spelling?).
Then, for the small stuff, like that link to the SEC suspension/halt page, they use automated tech now that scans SEC filings, looks for mismatches, they do rely on some tips sent in like you're talking about - and then they slap the smaller players with "suspensions" and "halts" and stuff, figuring it'll gum up the works of their trading and reputations enough, that maybe they just die out and/or go out of business on their own, w/o an expensive prosecution needed.
That's sorta how it works IMO, from reading and watching it for years. I'm certain the SEC guy/office you called, they'd like to shut down a 100 places tomorrow if they could, and I'm sure they know what you're talking about is going on, they just don't have the people, time, money and legal means to do it, so they pick their battles very selectively and then hope that FINRA and DTC, transfer agents, and other "gatekeepers" also keep things at least semi on the up and up, as "fair" and "legal" markets are supposed to be what makes America different.
Again, my 2 cents. I think you're probably 100% correct that "something", at least at times, is at best "amiss" in these trades and the seemingly amazing ability to control these "run ups" then rapid collapses, then see vol dry up near instantly to nothing, etc. Problem is, what exactly is "it" that's causing "it" and how do you pin it down and find the "it", and then pin "it" to a specific law being broken, etc?
Dubb, I think one would be looking at a long, long, tough road trying to get the SEC to look at "trading improprieties" on a micro, nano cap OTC stock. One would have to lay out all the evidence for them- who's colluding, what firms, what dates and times it occurred, etc.
As you stated the SEC person on the phone said, the SEC's role seems to be more with regulating and looking at the companies themselves- aka the SEC filings, their accounting being correct, no false PR or running of what's commonly known as "pump n dumps", no internal company corruption, etc
Here is a link to SEC actions, you can see it's always against companies and almost always for lack of SEC filing, misuse of PR, false or misleading PR claims, false statements, accounting problems, implications of running the P&D and similar- read through um, it's quite an interesting read IMO. Almost all are OTC or "penny" stocks, every time:
http://www.sec.gov/litigation/suspensions.shtml
"trading" improprieties is probably more a FINRA and DTC (Depository Trust) type issue would be my guess- that's why they exist and are usually called "gate keepers". They monitor and "clear" all trades and settling of trades, make sure order flow "matches" and is legal, shares are registered and legal, etc. Not so much the SEC from my understanding. FINRA would be the broker regulators per my understanding. DTC makes sure the shares are legal, that order flow is on the up and up and more. DTC is a very big and secretive organization. $TRILLIONS in trades are processed all via DTC. Also, the company's (BHRT's) own Transfer Agent is supposed to be part of that chain per my understanding and is involved in being DTC compliant and all. The agent for BHRT shares is Continental Stock Transfer.
I think the stuff you're after is more DTC and FINRA related more than likely. Remember, not too far back- BHRT issued an 8-K that indicated that the DTC had "questions" about some shares being properly "eligible" or something like that. Here, here's the language and link to that 8-K (look up DTC chills or freezes as an example of what the DTC can do, similar to the SEC who they work with also)
http://www.sec.gov/Archives/edgar/data/1388319/000114544314000932/d31492.htm
" In addition, the Company has received a request from The Depository Trust Company (“DTC”) to confirm that shares of common stock deposited at DTC were eligible under the Rules and Procedures of DTC for deposit. The Company has responded to this request."
"Ways of a market maker"
It's certainly an interesting article, though it's extremely dated. Though, many of the underlying principles or concepts he/she discusses in the article are probably "somewhat" applicable today.
However, today it's amplified at light speed- because the entire OTC and nearly all major markets, barring the "floor" of the NYSE, are nothing but electronic trading networks. There'd no longer be any "phone call" placed from say E-trade, trying to "match" order flow or get "inventory" or whatever as the article describes.
It's all done via algorithm, or at best, a human staffed trading desk "might" be involved and they'd simply be "flashing" electronic bid and offers onto the network to "game" it as needed, look for inventory, etc
What's not in the article or discussed IMO, is the real "kicker" to many OTC, penny, nano-caps, and that's what happens when they have convertible debt deals and boat loads of cheap options and 10's of millions of cheap shares issued out to who knows who? THAT is the difference in when things get "real interesting" in my amateur opinion and that of many, many people who have watched what happens when a Magna or Asher or similar become involved with a low vol, thinly traded OTC stock- and they hold a "note", a note with "resets" and "discount formulas" and other "provisions" (i.e. no floor price to shares they can get) in which they, the "finance house" makes more money and get more shares the LOWER they can make the share price go.
Remember, they always "claim" (look at language in this latest Magna deal, "claim" that they won't "directly" or via affiliates engage in shorting, blah, blah, blah, WINK, WINK)- but somehow everyone seems to know it's exactly what they do. How they do it? Probably via layers of sub companies and "friendly" firms across the street or a trading desk set up under some other LLC so it's not an "affiliate" per the highly legal-eze in the contract, etc.
Wall Street is already a dirty, corrupt place. You get down into OTC land, the place of boiler rooms, use of convertible debt money at near mafia terms, shady firms who can skirt the law on the fine line for yrs like Asher and Magna and similar and when caught just pay a fine (slap on the wrist) and then re-open under a new name 3 months later, 2 doors down, it's a sorted tale to say the least IMO. Legions written about it- and the SEC is so understaffed versus the 1000' of microcaps and associated lenders and finance houses and all- it's a 1000 to 1 shot they can even monitor and follow all the action it moves so fast. Every time they finally prosecute some ASHER type dude, 10 more have popped up and are using newer, faster technology to "work the system" even better and for more profit.
This isn't about guy's who make like $100K or $500K a yr or whatever- they're raking in $10's of millions of dollars (200%, 300% or more is the rumored returns an Asher firm makes on an avg convertible "note", often in about 6 months or less), getting filthy wealthy while crushing stocks and companies. If they have to pay a $1 million in a SEC fine and do 4 months at a club-fed white collar crime camp, then emerge and live out the rest of their life with $20 million in off-shore accounts, what the heck to they care? I've read a few books written by real life guys who were there, like that article cited. And it's amazing to know how corrupt and dirty it all is, no doubt.
My opinion has and always will be- if anyone is "shorting" or as some like to speculate "manipulating" a stock like BHRT, I'd put bank on it that in one way or another the trail leads straight back to those with whom they've done convertible debt, toxic notes or similar "financing" deals (warrants, etc) in one form or another. My 2 cents.
http://investorshub.advfn.com/~-ASHER-~-25451/
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68247638
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=81055877
Just some "service" that tries to hawk expensive "reports", churned out by low paid writers. Visit their site, it's all there. It's a few people and a web site selling "reports".
There's no legit, well known financial community member, or "analyst" coverage of BHRT because they're a near broke, nano-nano-cap, sub 2 cent stock on the OTC. No UBS or Citi or Morningstar, or S&P, or JP Morgan, or Bear Stearns, or Oppenheimer, or Deutsche Bank or any debt rating firm or well known, high profile, well published research/analysts desk or firm is going to cover or follow BHRT, not a chance IMO.
It's not even 10,000 miles from their radar. That on-line "report" company link has been put up several times already, it's old news. It doesn't mean a thing to BHRT or the stock price or whatever IMO.
"Based on recorded statements Bioheart Inc has 1.28 K of outstending shares currently sold short by investors. This is much higher than that of the sector, and significantly higher than that of Number of Shares Shorted industry, The Number of Shares Shorted for all stocks is over 1000% lower than the firm."??
That makes ZERO sense? It's not unusual in the slightest, for listed, large cap stocks (say Apple for instance) to have 5%, sometimes 10% of their outstanding float "shorted" at any given time.
BHRT's float is about 420 million shares on the low side.
So even if a modest 5% was "short", that would mean about .05 X 420 million = 21 MILLION SHARES short would be listed as the "open short interest" at any given time.
This web site quoted says 1.28K or whatever the number is? That's 1,280 shares, which is nothing. It's near zero. Makes no sense at all? And it certainly wouldn't be remotely "highest" of all stocks out there or whatever? Not by a long shot. I can find NASDAQ listed stocks by the dozens that have 10% or more of their float shorted, right now today. All over the place and in every industry segment that exists.
I also don't trust the OTCshortwhatever site that was listed. That's just some small time site that peddles a newsletter and stuff. How do they even know when a sale is "short" versus an ordinary sale? There's no easy way to discern that. W/O some credible source like the OTC market itself, requiring disclosure of open short interest (in other words from broker-dealers, as to how many shares they have lent out on margin) I don't know how anyone gets a remotely credible short number on an OTC penny stock like this?
All I do know, again IMO, is that if there is shorting taking place, I'd put my money on it that it's a direct result, 100% correlated to the very firms with who Bioheart is willingly inking "finance" deals- aka Magna, Asher, Fourth Man, etc. That's why those firms are known as share-price-crushers and "toxic" financiers, well, well known in the industry and on msg boards like I-HUB and similar.
Too many people have seen where the share price goes whenever a company gets in bed with the likes of a Magna. Magna is not where financially healthy companies go for "financing", Magna is known as a lender of last resort IMO and that of many others, both amateur like me, and even professional commentators. It's the worst type of financing a company can typically use IMO. So for BHRT to tap into Magna, they must really, really, really need cash bad in my humblest of amateur opinions. Else, they'd go to any other numerous sources of who would lend or finance at far, far better terms than a Magna type firm. That's my 2 cents.
Closed red, down 6%, on a day when the markets are completely smoking on fire: the DOW up over 300 points mid day, NASDAQ smoking and BHRT can't even break through the 2 cent barrier?
I don't think any shorts (if they even exist) are in any "panic".
What's real interesting IMO, is looking at the OTC board level II system.
http://www.otcbb.com/asp/Info_Center.asp
At 15:27 Eastern (about 30 minutes to close of market) it posts an 11,998 share trade at .02. (about $240 bucks worth)
Then, it sits parked w/o a single trade until 15:51 Eastern, 9 minutes before market close, when it posts a single, 300 share trade at .0187 to close it down 6%, in the red for end of trading day. 300 shares?
300 X .0187 = $5.61 cents worth. How is that even possible? Someone, Magna, Asher, whoever has a professional trading desk and direct routing to the electronic networks, really, really wants to cap this at about 2 cents right now, in my totally amateur opinion. I mean who can/would post a $5.61 trade through like an E-trade or something when the commission is $9.95 or whatever?
We're supposed to believe that right before close, somebody just had to unload 300 shares of a sub 2 cent stock? Wow? Bizzaro IMO. I don't get it?
"The shorts are in a panic.."
What "shorts"? Who's shorting a sub 2 cent, OTC stock?
If there's anyone "shorting" this, then about a 99% probability they're sitting at a pro trading desk and have some relationship to those who do the "financing" for BHRT using toxic, convertible debt and similar, IMO.
Call up any broker who serves the "retail" public and ask to get "short inventory" on BHRT. Chances IMO, about zero.
What's the open "short interest" on this stock as a percentage of float at any given time? I'd guess pretty much ZERO, more than likely.
What would these "shorts" be in a "panic" over? It just ran up about 50% on a PR-HYPE day Monday, on over 5 million shares traded, and within 48 hours or less was crushed back down to the sub 2 cent level. Hardly seems like "panic" time for anyone but someone who got fooled on Monday into buying at .0248, or who's still holding from .03 or .06 or .08 just 6 months ago. It's down about 70% in just 6 months, hardly a "short's panic" IMO?
Seems like if anyone was shorting it, hypothetically, then they'd be making nothing but money, continually on this stock, IMO.
"I hope he does a good job, for us as shareholders "
Well, since he took over as CEO in mid 2010, he's produced about a 95% or greater LOSS for the common shareholders. That's a 4 yr, going on 5 yr "turn around attempt". Most CEO's are typically given about 2, maybe 3 yrs tops to "right the ship", else they get the boot.
So, not sure what one's expectations are as a shareholder? If it's continual losses and lots of common share dilution, then this one might be winner IMO.
Share price around mid 2010 when Tomas took over as CEO was about .50 cents, w/ maybe a spike to two as high as .70 cents. (look at a chart going back to 2010). On his watch, the stock saw it's all time historic low of .0063 (6/10ths of one cent) in Dec of 2013.
There were about 30 million shares of stock outstanding when he took over. Today there's gonna be at least 600 MILLION or so (517 MILLION as of last 10-Q filing, 3 month old data now).
Also, if one does the math, in 2010 the market cap would have been about 30 million shares X .50 cents = approx. $15 MILLION dollars.
Today's market cap as of this AM is at about $10 MILLION. So he's overseen about a 33% loss in the market cap of the company too. Again, not sure what one's expectations are as common shareholder, but the general idea is normally to grow the company and thus grow and increase the market capitalization, not see it decline. Just sorta the way it works in the markets.
Despite all this fantastic performance and diminishing returns to the common shareholder's, the CEO's pay has increased dramatically, most dramatically in 2014, rising to now approx. $1 MILLION in just base pay + Cash bonuses ($525K base salary + $500K cash bonus, see latest SEC 10-Q filing compensation table), not even counting stock options, medical and I'm sure other perks and benefits he receives, paid for by BHRT.
Here's the share dilution numbers from their own SEC filings:
From 10-Q for Q-3 2010, PAGE 1: (a few months after he takes over as CEO)
"As of September 30, 2010 there were 29,366,985 outstanding shares of the registrant’s common stock, par value $0.001 per share."
So there's about 30 MILLION, yes, 30 MILLION shares O/S total then in mid 2010 when he starts as CEO and in full control and a share price North of .50 cents or so.
Share count today, from most recent filed 10-Q, Q-2, 2014, PAGE 1:
"As of August 1, 2014, there were 517,272,472 outstanding shares of the Registrant’s common stock, par value $0.001 per share."
That's about a 517/30 = 17 fold INCREASE in the outstanding shares (and it's still increasing constantly, w authorized shares now increased to 2 BILLION available)
"We have an excellent CEO in command here."
Well, the stock price has "only" declined about 95% or more on his watch since he took over in 2010, which is better than the 98% plus total decline since the IPO date of 2008, so I guess that a "plus", kinda sorta maybe?
And the dilution well, it's pretty epic, but I guess that's OK too? Maybe?
Lets see, he took over as CEO in June 23rd, 2010 I believe?
http://www.prnewswire.com/news-releases/bioheart-announces-mike-tomas-appointed-ceo-97013034.html
They were in severe financial trouble at the time (B of A loan default, Bluecrest loan/note default, Northstar created eventually, all that "Stuff" right around that time period) oh, and all the key trials pretty much ground to a halt right around that time, the MARVEL and REGEN phase II/III for example stop right around 2010, and have never progressed since for "lack of funding" or whatever.
And they're still in pretty much major financial difficulties today, 4 yrs later with an auditor "going concern" warning in every latest SEC filing and finishing out this past qtr with $92K, yes, $92 THOUSAND total dollars left in the ole cash account. But yeah, that all seems pretty good I guess?
So, they go from 2010 to today, declining in price from at least about .50 cents a share, maybe as high as .70 cents a share (just pull up a long term chart and look at share price around mid 2010, it's there in black and white or color), to now about 2 cents a share, with an all time low occurring on his watch of .0063 in DEC 2013, about 10 month ago now. So yeah, that's all pretty good I guess.
And then the dilution- lets see. Around 2010 the shares were:
From 10-Q for Q-3 2010, PAGE 1: (a few months after he takes over as CEO)
"As of September 30, 2010 there were 29,366,985 outstanding shares of the registrant’s common stock, par value $0.001 per share."
So there's about 30 MILLION, yes, 30 MILLION shares O/S total then in mid 2010 when he starts as CEO and in full control and a share price North of .50 cents or so.
Share count today, from most recent filed 10-Q, Q-2, 2014, PAGE 1:
"As of August 1, 2014, there were 517,272,472 outstanding shares of the Registrant’s common stock, par value $0.001 per share."
So from 30 MILLION shares to now at least 517 MILLION (it's gonna be a lot more than that on next 10-Q in a few weeks), and a share price decline of at least 95% or so under one's "management", yeah- I can see how that's pretty darn "good" IMO. I guess?
Makes sense to be getting paid a $MILLION or so a yr for those results I guess? Yeah. Makes perfect sense to me? Must be a "performance" or total "ROI, return on investment to stock holders" based compensation plan IMHO. Yes.
Yeah, there's some trades posting for sure now. Something appears screwy with maybe OTC feeds today and then maybe I-HUBS ticker display. I-HUB has a msg up about working to get level II fixed. Not sure if that's part of how they feed the main price display?
But it's trading real sloooow, either way. It's showed a few AM trades, and now is just a flat, straight line again. Not much happening. Volume is way off now. Excitement from Monday looks like it petered out in less than one or two trading days, can't even break 2 cents now it appears.
I always check the OTC site itself as a good backup source for a quote, figure it's right from the source, rather than a Yahoo or someone else who's actually getting it from OTC anyway.
http://www.otcbb.com/asp/Info_Center.asp
You can even click their "depth/level II" tab and see the historic level II, delayed. But it gives one an idea of the size of the trades that went through, their time stamp (as in flat lining gaps if they exist for example), how fast trades are moving, is it lots of real tiny trades or are some big chunks going through, etc.
ONE HOUR into trading day, and it's flat-lined out, dead in the water again. Bid is showing .0153 and Ask over .02? Is that even updated yet this AM? That's a low bid and a huge, enormous spread if correct?
Hasn't posted a single trade yet? It's not set up for some big "run" upward IMO. It's looking technically weak, and volume weak, weak all the way around. Couldn't even break and hold the 50 DMA let alone the 200 DMA and keeps bumping up against 2 cents now.
No big "run" IMO, not when it can't even post a lousy $100 trade or whatever on open, like all the other stocks. If it couldn't hold that PR-HYPE spike on Monday, on 5 million plus shares, then what's gonna drive it higher now, or anytime soon? It simply sold off right back into that strength, in a 24 to 48 hour period. Lot of bag holders made that day.
When it goes low volume, flat lining like this, historically, all it takes is one or two major, "big boy" sellers to post a sell order or two of "size" and they can sink it 20% or more in the blink of an eye. No buyer's around.
Yep, Diesel, historically when it gets in this slooooow mode, I call "flat-lining", it's look out below time, IMO. It will usually make a large drop within the week or so of this occurring. It just takes one of the holders of the 10's of millions of low priced dilution shares (many are at 1 cent or so), only needs to unload a small chunk of their holdings, and when there's very few buyer's, or hardly any trades for that matter, it drops like a boat anchor.
It made it's all time historic low of .0063 in Dec last yr, very similar pattern to the way it's setting up end of yr again, right now, IMO.
And now Magna is going to be on-board with a toxic, convertible debt note soon, with a steep discount built in and then at least 9 MILLION (maybe as much as 15 MILLION) more low priced Magna shares as their "fee" portion alone for this new, 24 month credit line. So just a lot more low priced shares about to be in the on-deck circle to hit the selling block soon, IMO.
"1st year is showing a ton of revenue. the IP is being lent out for profit which reduces dilution ..."???
What does that even mean? There's no "IP" being "lent" to anyone? Where is that stated?
How much is a "ton" of revenue? A "ton" is a measure of weight??
Just from the 10-Q, Q-1 to 2014, to the 10-Q, Q-2, 2014, about a 3 month period, there was massive dilution, like a TON.
10-Q, period Q-1, 2014, PAGE 1:
As of May 6, 2014, there were 466,396,016 outstanding shares of the Registrant’s common stock, par value $0.001 per share.
Page 10, same 10-Q:
" Fully diluted shares outstanding were 498,696,292 and 222,688,816 for the three months ended March 31, 2014 and 2013, respectively."
10-Q, period Q-2, 2014, PAGE 1 (THREE SHORT MONTHS LATER)
As of August 1, 2014, there were 517,272,472 outstanding shares of the Registrant’s common stock, par value $0.001 per share.
Same 10-Q, Page 9:
"for the three months ended June 30, 2014 and for the three and six months ended June 30, 2014. Fully diluted shares outstanding were 588,670,163 and 290,900,920 for the three months ended June 30, 2014 and 2013,"
Thus in just the last 3 month reporting period, they diluted by (using fully diluted shares, which account for all derivative needs like options issued, warrants, etc):
588,670,163 - 498,696,292 = 89,973,871
Yep, 89 MILLION SHARES OF DILUTION from March 31, 2014 to June 30th, 2104. THAT IS MASSIVE DILUTION, on track for probably another 200 MILLION plus shares dilution for the year.
Notice also in the above 10-Q statements, showing the yr over yr periods, the SHARES O/S DOUBLED FROM 2013 to 2014 basically.
"Fully diluted shares outstanding were 588,670,163 and 290,900,920"
588 MILLION is pretty much a DOUBLE of 290 MILLION.
Again, site any 10-Q or 10-K filing page/pages that shows and proves otherwise please. Thanks
"Wrong those are already deferred in warrants through this decade. Only person getting a check at BHRT is the CSO and admin staff. all cash goes to debt, clinical and lights etc./"?????
Huh? What is a "deferred warrant"?
What page of a 10-Q or 10-K filing states that only the CSO "receives a check"?? Where?
The last 10-Q had a COMPENSATION TABLE- it indicates a BASE SALARY TO BE PAID and a CASH BONUS for the CSO and CEO totaling $800K and it's to BE PAID, and if not PAID IMMEDIATELY as in CASH, then a PROMISORY NOTE for 6 months is to be issued (WITH INTEREST) which means the company then owes them MORE THAN $800K and needs the CASH TO PAY THEM WHEN THE NOTE IS DUE.
LAST 10-Q filing, end period June 30, 2104, PAGE 25:
"NOTE 13 — SUBSEQUENT EVENTS
Officer compensation
On July 28, 2014, the Company’s Board of Directors approved the 2014/2015 salary for Mike Tomas, Chief Executive Officer, at $525,000 per year, beginning July 1, 2014 with an incentive bonus ranging from $150,000 to $500,000. In addition, the Board of Directors will grant Mr. Tomas options to be determined on or before June 30, 2015. The Company’s Board of Directors approved a bonus of $500,000 and options to acquire 10,000,000 shares of the Company’s common stock for ten years with four year vesting and a cashless exercise provision at an exercise price equal to the five day average closing price of the Company’s common stock as of August 1, 2014. The cash bonus may be paid in the form a six month promissory note.
On July 28, 2014, the Company’s Board of Directors approved the 2014/2015 salary for Kristin Comella, Chief Scientific Officer, at $250,000 per year, beginning July 1, 2014 with an incentive bonus ranging from $100,000 to $300,000. In addition, the Board of Directors will grant Ms. Comella options to be determined on or before June 30, 2015. The Company’s Board of Directors approved a bonus of $300,000 and options to acquire 5,000,000 shares of the Company’s common stock for ten years with four year vesting and a cashless exercise provision at an exercise price equal to the five day average closing price of the Company’s common stock as of August 1, 2014. The cash bonus may be paid in the form a six month promissory note."
There is NO NOTES, sub text, "*" or anything else to indicate this is paid via some imagined "deferred warrants" (again, whatever that even is???) these are salaries and thus EXPENSES and fall under the SG&A entry expense line as a cost. PERIOD.
Everything in that description above as "compensation", other than STOCK OPTIONS comes from CASH, TO BE PAID, ON TIME, except the bonus, which may be delayed 6 months if that much cash is not available (which of course it was not at the time, but will be when "financing" arrives), then it gets paid as a CASH BONUS, just like the wording states.
Unless it's in the SEC filed 10-Q or 10-K and a page number can be given, then it's just all made up, IMO.
"expect a significant increase in Revenues. "
Expect an ENORMOUS increase in the number of O/S shares. Page 1, then do a search for "fully diluted" shares, that number will be even bigger.
So far, any "revenues" have been off-set by massive increases in their sales/general/admin, cost/expense line. It's meaningless IMO to look at "revenue" w/o looking at the expense line at the same time, and then numerous other factors like debt, debt service costs, cost of sales, etc.
There are/were companies with $BILLIONS in revenue, that are/were money losing pits, on the brink of BK or even in BK or vanished from already going BK. Billion dollar bankruptcies or companies with more than a $BILLION in revenue near BK, or formerly BK:
Nortel
Block Buster
Sears
Best Buy
Circuit City
American Airlines
Pacific Gas & Electric
Chrysler
Enron
General Motors
WorldCom (MCI)
Washington Mutual
Delta Airlines
Global Crossing (telcom, fiber optics)
Borders Group (books)
Montgomery Ward
Dow Corning
TWA airlines
There's many, many, many more. It doesn't mean a thing to have $100 BILLION in "revenue" if one can't achieve positive cash flow, make a PROFIT, or for example fund trials that will cost $10's and $10's of millions, pay your existing debts and control your costs and expense line, etc.
Reading the "revenue" line only, is like reading ONE PAGE of a 100 page book. It means hardly anything w/o filling in the full story. Debt, cash flow, expenses, interest costs, etc
There's a whole lot more to a 10-Q or 10-K filing than looking for some "revenue" number.
"Myocell phase 3 update coming soon "??
Update about what? Myocell has been "parked", going nowhere for 4 plus years now? What would there be to "update"?
Last 10-Q filing, end of period June 30, 2104 (just a few months ago) PAGE 2:
"We have completed various clinical trials for MyoCell including the SEISMIC Trial, a 40-patient, randomized, multicenter, controlled, Phase II-a study conducted in Europe and the MYOHEART Trial, a 20-patient, multicenter, Phase I dose-escalation trial conducted in the United States. We were approved by the U.S. Food and Drug Administration, or the “FDA”, to proceed with a 330-patient, multicenter Phase II/III trial of MyoCell in North America and Europe, or the MARVEL Trial. We completed the MyoCell implantation procedure on the first patient in the MARVEL Trial on October 24, 2007. Thus far, 20 patients, including 6 control patients, have been treated. Initial results for the 20 patients were released at the Heart Failure Society of American meeting in September, 2009, showing a significant (35%) improvement in the 6 minute walk for those patients who were treated, and no improvement for those who received a placebo. On the basis of these results, we have applied for and received approval from the FDA to reduce the number of additional patients in the trial to 134, for a total of 154 patients.
We have also initiated the MIRROR trial, which is a Phase III, double-blind placebo controlled study for centers outside the US. The SEISMIC, MYOHEART,MARVEL and MIRROR Trials have been designed to test the safety and efficacy of MyoCell in treating patients with severe, chronic damage to the heart. Upon regulatory approval of MyoCell, we intend to generate revenue in the United States from the sale of MyoCell cell-culturing services for treatment of patients by qualified physicians.
We received approval from the FDA in July of 2009 to conduct a Phase I safety study on 15 patients of a combined therapy (Myocell with SDF-1), which we believe was the first approval of a study combining gene and cell therapies. We initially commenced work on this study, called the REGEN Trial, during the first quarter of 2010. We suspended activity on the trial in 2010 while seeking additional funding necessary to conduct the trial.
We are seeking to secure sufficient funds to reinitiate enrollment in the MARVEL and REGEN trials. If we successfully secure such funds, we intend to re-engage a contract research organization, or CRO, investigators and certain suppliers to advance such trials."
MARVEL went dead in the water about 2009, and REGEN around 2010. It's late 2014 right now. WHAT is there to "update"? Nothing's been "happening" as far as I'm aware to "update", that 10-Q statement above is the "update", and all it says is a) Nothing new has happened and the ole b) WAITING ON FUNDING, the same story for 4 plus yrs now.
What's new to "update"? There's no "Myocell phase 3" taking place right now? Not getting it?
Totally agree, Diesel. A real "fine" line IMO too.