US Stem Cell Inc (USRM)

[Dragon Lady]

Quote, "How is this relevant"??

How is it NOT? Bioheart just did TWO financing deals with toxic Magna. That article link is to Bloomberg- one of the most respected financial print and TV journalistic sources on planet earth- probably only rivaled by the Wall Street Journal and CNBC and one or two others (not some nothing "blog" or no traffic "stem cell" site or whatever) it's BLOOMBERG Finance that wrote that journalistic piece on Magna.

http://www.bloomberg.com/news/articles/2015-03-12/josh-sason-made-millions-from-penny-stock-financing?hootPostID=3a965f7c7d80e46c0e0ea2a2ada7edc4

Here's just a few quotes from that extremely details article and TV interview of who and what "Magna LLC" is and what kinds of company's typically do "financing deals" with them and what, via Bloomberg's thorough research of all past 80 Magna penny financing deals, what typically happens to a company's stock within 1 yr of using Manga for amounts as little as $100k (BHRT just did a $205K convertible toxic note with $307K owed back to Magna on it and then also opened a financial product Magna created called "enhanced equity line" or something like that, BHRT set up enough shares for a $3 million line of credit over 24 months)

From the Bloomberg article on Magna: Quotes-

"An analysis of 80 public filings shows that a company that does a deal with Magna sees its shares plummet 55 percent over the next year, on average. Most never recover and wind up trading for thousandths of a penny or less. Sason says that’s not Magna’s fault."

"What Sason discovered is a way to get shares in desperate and broke companies at big discounts by lending them money. Magna has done deals with at least 80 companies. Of those, the stocks of 71 have gone down since the investment. He can still turn a profit, because the terms of the deals allow him to turn debt into equity at a fixed discount. No matter where the stock is trading, he gets it for less."

"Magna functions as a pawnshop for penny stocks—shares of obscure ventures that change hands far from the rules of the New York Stock Exchange. His customers have included a would-be Chilean copper miner, an inventor of thought-controlled phones, and at least two executives later busted for fraud. They come to Sason to trade a lot of their stock for a little bit of money. Often they’re aware the deal is likely to be bad for their shareholders."

And a whole lot more- Bloomberg finance's words and description of Manga and their reputation of lending to "desperate penny firms", all their words, Bloomberg.

Sounds pretty daunting and not exactly "good" for common stock shareholders IMO. Not good at all based on all that research Bloomberg did on essentially every penny financing deal Magna's ever done.