"Read the DEF14C". The ONLY thing that 14C says with certainty, is that more shares, new total of 2 BILLION to be exact, are being "authorized", that's it.
There is no other, concrete proof that "funding is in the works" or that some type of "major funding" will ever occur. It's impossible for anyone to know that, or that any "funding" will ever occur and the company's own 10-K/10-Q say just that, in numerous places/disclosures.
The stock price is at 2 cents. Realistically, the lower it goes the harder even "small" amounts of "funding" get, as evident via the horrible terms the company just used, as recent as Feb 2014, to bring in, amounts as low as $35K of cash.
Most recent 10-Q, PAGE 15:
"Daniel James Management
On February 19, 2014, the Company entered into a Securities Purchase Agreements with Daniel James Management (“Daniel”) for the sale of 8% convertible note in principal amount of $35,000 (the “Daniel Note”).
The Daniel Note bear interest at the rate of 8% per annum with all interest and principal due February 28, 2015. The Daniel Note is convertible into common stock, at holder’s option, at a 47% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. The Company has identified the embedded derivatives related to the Daniel Note. These embedded derivatives included certain conversion features and reset provision."
THAT is "funding" and it took a 47% discount on the shares, to get a "financing firm" to put up a whole, whopping, $35K in cash.
Even at 2 billion shares, who/what would "finance" any large amount of money to BHRT, IMO? Just the simple math shows how tough it would be. If that Daniel James firm just got a 47% discount on their share, for putting up $35K, then why would some "big" and "sophisticated" type investor put up a bunch of money, and expect lesser "terms" on their deal?
So, if shares, even a super tanker full were issued, how much could they raise, realistically IMO? Per those terms above, one would expect that the shares would have to be issued/given to someone at about 1 CENT perhaps (probably lower, for a large amount of money, IMO), to make them attractive enough to get an ROI on their investment, IMO.
So, how much would 1 BILLION shares at 1 cent bring in? 1 BILLION times 1 cent only = $10 million.
But WHO is going to barf up $10 million for a billion worth of penny shares, who? IF, they started to/needed to, start selling those shares to get their money back out of their investment- the selling pressure of 1 BILLION shares would crush the stock price IMO, and they'd never be able to sell/unload them- it would take yrs or selling, every day, at the average volume this stock trades at.
Just look at what happened to a few days of "selling pressure" from someone unloading a few days of 8 million shares being the highest vol selling day- the stock price collapsed 20% in a single day, or more in a couple of days, bring it rapidly below 2 cents again.
So, who would be willing to take that risk? The "ASHER" type firms protect their downside, via using the "floorless convertible", that way they CAN NOT LOSE, no matter how low the share price goes. WHY would someone else "step in", put up huge amounts of money, and not expect the same "down side" GUARANTEES?
I don't see it happening, IMO Even if they gave um a BILLION shares at say 1/2 cent, who would put up $5 MILLION, knowing if they tried to sell those shares, the stock price would collapse under the selling pressure? Secondaries are done for a reason, they're done when a stock has STRONG DEMAND and lots of buyers to absorb the shock/volume of the new shares entering the market. And even then, on enormously successful, highly traded, high volume/dollar vol stock, a large amount of new shares entering the market, almost always causes common share price depression, at least temporarily.
And who would take "debt", which is what "mezzanine" financing uses? BHRT has no positive cash flow, self cash generation to even pay their current debts and on-going expenses. WHO is going to step into some 2nd position as an debt holder? Of all the places/choices they could put, say several million dollars to "invest", they'd put it at risk here, on a 2 cent stock? Any money raised, wouldn't even allow them to pay their current debt off, so who would want to get in position behind that existing, unpaid debt? Again, makes no sense IMO. Even a BILLION shares being sold, wouldn't even, most likely generate enough cash to even cover the company's immediate debt and current cash deficits as stated in the numerous "going concern warning" details, IMO. The math doesn't add up.
Someone, IMO, is not going to pay 10 cents a share or something, to "invest", when the entire market cap is only about $11 MILLION and the common stock is hugging 2 cents, with recent lows of 1 cent and lower, and "ASHER" and similar being given their shares at 40% or greater discounts. Not seeing it happening or how/why it would happen IMO. Makes no sense that I can discern.
