"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.
AI
