US Stem Cell Inc (USRM)

[Dragon Lady]

"This hypothetical (flawed?) scenario conveniently ignores the clearly indicated 55% discount on the five day average prior to the issuance of shares, and any positive movement in the share price too."

8-K was just amended it appears. The "terms" I referred to are for the original $300K "note" which is actually only about $200K cash to BHRT. In that "note" the terms are 1 CENT per share at the most, and only go lower when the 55% discount is invoked under various scenarios such as in the "default" provisions.

I'm reading the amended 8-K now to see what the terms are on the credit line. First thing that stands out is an up-front $150K fee from BHRT to Magna, which is being paid, of course, in dilutive shares. 9,109,128 it looks like and possibly up to 15,890,872 depending on the daily share price. So the dilution begins right there. And $25K in attorney fees. Nice.

The "credit line" pricing appears some complex formula with "True-up-date" and a bunch of formulas involved- even more complex than the $300k/$200K "note". Have to figure out what the actual share price is likely going to be- but it's highly dilutive, no matter how it's sliced IMO.

No way IMO with all this dilution, which is going to put huge downward sell pressure on the stock- does it see 15 cents or whatever the imagined price is being asserted. What trials are going to be "re-started" on $125K a month, which doesn't even cover recent bonuses to two people and major increase in the expense line seen in the last two 10-Q filings? The operational loss last qtr was essentially the same the same yr ago period- meaning any "revenue" they brought in, they spent that and more on expenses (salaries being a big part of that), while only $5K a month is going to R&D, aka "trials", a pittance.

Just the $300K note is going to dilute out to millions and millions of more 1 cent or cheaper shares in just the short term. Those shares will most certainly hit the sell block ASAP IMO. Magna is notorious as a vulture lender- they're not going to hold shares as an investment or something, not in my opinion. They turn and flip um as fast as they get um from all that I've read about Magna. Magna is known as being more ruthless than ASHER and others. Just search the I-HUB Magna pages- several have been built and dedicated to track companies that used Magna and the results that followed.

My opinions.