US Stem Cell Inc (USRM)

[Dragon Lady]

"Awesome"?

Not sure what's "awesome" about the guy cashing out debt for common shares? To me, he's just switching money he is owed into common shares- IMO, typically a sign one wants to sell and "cash out". A debt holder is almost always in a senior position to a common shareholder.

So by doing all these debt-to-equity swaps they've been doing, it appears they just want free trading shares they can sell/dump and move on IMO.

Not sure what can be inferred about it beyond that? BHRT obviously doesn't have, and hasn't had cash to pay these debt holders back for years- they've been making some interest and other minimum payments to them it appears from what can be deciphered from the 10-K and similar, as far as my read indicates.

So if a guy wanted to get at least some of his money back quicker- IMO, you convert to common stock, which you can then free trade at will, meaning sell if you want and get out. Again, inferring more than that at this point seems impossible to know- all he's done is change money owed into being paid in common stock shares. That's all that appears to have taken place. Of course it increases his "stake" as he now holds more common stock shares.

One would assume this is also just more dilution also- cause it's effectively paying debt, not from cash for example (the revenues for instance) but just issuing out more common stock. Says he converted like $192K dollars. For example: $192K/.015 per share = 12.8 MILLION more shares just handed out. They are issuing stock like water at every turn it seems, from paying common bills, to paying debts to any other number of reasons. On-going, constantly from reading the SEC filings.

It's interesting it seems in light of this recently filed lawsuit. Cause that involves his apparent ex-wife, who upon the divorce, got half the debt the "Leonhardts" were owed. Whether or not she's still a debt holder/owed money or was paid back or has gotten in on any of these debt-to-equity swaps is not clear in any filing or anything I've seen?

https://www.clerk-17th-flcourts.org/Clerkwebsite/BCCOC2/OdysseyPA/CaseSummary.aspx?CaseID=7862332&hidSearchType=party_case&DisplayCitation=no&CaseNumber=CACE14021256&SearchType=

http://www.sec.gov/Archives/edgar/data/1388319/000114544311001144/d28764_ex10-63.htm

http://www.sec.gov/Archives/edgar/data/1388319/000114544310001842/d27040.htm

"That 8-K SEC filing states that Leonhardt had filed divorce papers: PAGE 17
"In February 2010 the Company’s Chief Science and Technology Officer and his spouse filed divorce papers. Pursuant to the divorce, their jointly owned shares and their ownership of the loan to Bioheart which they hold as a result of their payment of $3 million of principal and related interest to Bank of America on behalf of Bioheart, would be divided equally between them. As a result, the Chief Science and Technology Officer’s common shares were then reduced to 2,513,840 and his percentage shareholding of the Company to 13.8%, with his former spouse assuming ownership of the same number of common shares and percentage shareholding of the Company. Their commonly owned loan and related interest, as of March 29, 2010, $4,140,201, was been equally split. The Chief Science and Technology Officer on March 29, 2010, elected to convert his portion of the loan and related interest to
restricted common stock and warrants. As a result, Howard Leonhardt, the Company’s Chief Science and Technology Officer, as of March 31, 2010, owns approximately 22 % of the Company."