US Stem Cell Inc (USRM)

[Dragon Lady]

"Is there a rule that states having additional shares.."??

Not a "rule"? Like a "law" or something? No. But it's common sense and well established fact, that unless those shares being issued are "accretive" to a company's earnings per share, or are used for major sales growth for example- as in buying another already profitable or high growth company for example, then they typically harm the common shareholder, that I'm aware of and IMO.

Here is a real, real basic article on "dilution"- it may help.
http://www.investopedia.com/articles/stocks/11/dangers-of-stock-dilution.asp

This section of the above article, is a good example IMO, of the BHRT situation right now, as I see it, in my opinion:
"Warnings Signs Of Dilution
Because dilution can reduce the value of an individual investment, retail investors should be aware of warnings signs that may precede a potential share dilution. Basically, any emerging capital needs or growth opportunities may precipitate share dilution.

There are many scenarios in which a firm could require an equity capital infusion; funds may simply be needed to cover expenses. In a scenario where a firm does not have the capital to service current liabilities and the firm is hindered from issuing new debt due to covenants of existing debt (read the 10-K section on Northstar and the "restrictive covenants" regarding any new debt- it's all in there. My words, not the article obviously), an equity offering of new shares may be necessary. "

100's of millions of shares on a sub 3 cent stock- not sure of very many, if ever any, historical scenarios where it ends well typically. 2 billion shares on a sub 3 cent stock- not sure of any historical scenarios where that typically, if ever turns out well, especially for the common share holders. Most sub $1 stocks are in deep financial trouble. You get to true "pennies" like say .50 cents, and they're typically in deep, deep financial trouble- nearly insolvent (going concern warnings from auditor's for example) and when you get to true, micro, micro, micro cap "pennies", like in 3 or 4 or 5 or 2 pennies or whatever- and they nearly all, as in probably 90% or more, end in BK, or being shut down, dissolved, common shareholders wiped out, etc, IMO.

That's not my opinions about "penny stocks"- that's just well researched, well established industry norms and market researched facts (academia, govt regulatory tracking agencies (SEC), investment banking firm's research, etc).

https://www.sec.gov/investor/pubs/microcapstock.htm

https://www.sec.gov/answers/penny.htm

http://www.nasdaq.com/investing/lowdown-on-penny-stocks.stm

"The second reason that many investors may be attracted to penny stocks is the conception that there is more room for appreciation and more opportunity to own more stock. If a stock is at $0.10 and rises by $0.05, you will have made a 50% return. This together with the with the fact that a $1,000 investment can buy 10,000 shares convinces investors that micro cap stock are a rapid surefire way to increase profits. For some reason, people think of the upside but forget about the downside. A $0.10 stock can just as easily go down $0.05 and lose half its value. Most often, these stocks do not succeed, and there is a high probability that you will lose your entire investment.
"

That's words posted on the NASDAQ official web site- they put um up there and stated them, not me.

Make of it whatever you want. If more shares seems like a "good thing" to a person, then more power to um. Good luck investing and good trading.