They tapped MAGNA line Feb 2015, AND added more "toxic note" deals at the same time- that's how cash broke they are (the idea they're now somehow "close" to living off of internal generated cash is laughable IMO, not even close):
Just filed 10-K, PAGE F-34/F-35 (BURIED on the last 2 pages of the document, what a surprise? )
"In March 2015, the Company issued 6,185,432 shares of its common stock in settlement of $25,000 of outstanding convertible notes payable and $1,226 accrued interest. In addition, the Company issued 635,357 shares of its common stock as true up shares relating to the February 2015 equity drawdown under the Magna Purchase Agreement."
FEBRUARY 2015, they made a DRAW DOWN in the Magna line. As expected IMO.
Same pages of 10-K filing:
" In addition, the Company issued 20,219,367 shares of its common stock in settlement of $132,500 of outstanding convertible notes payable and $2,520 accrued interest and 16,556,976 shares of its common stock for net proceeds of $135,645 from equity drawdown under the Magna Purchase Agreement."
DILUTION FLYING OUT THE DOOR LIKE WATER.
So they tapped Magna as recent as Feb 2015 (about one month ago- but was that enough to fund their operations? NO, they used qty-3 more "toxic" finance houses doing qty-3 more convertible debt deals, they'd done qty-3 convertible debt deals in Oct of 2014 also. THEY LIVE ON CONVERTIBLE DEBT and toxic financing- it's right there in the filings)
Same pages F-34/F-35: (THREE toxic, convertible debt deals, done for a grand total of a pittance of $38K + $25K + $38K = $101K survival cash, despite the ole "revenues")
"Subsequent financing
On January 7, 2015, the Company entered into a Securities Purchase Agreement with KBM Worldwide, Inc. (“KBM”), for the sale of an 8% convertible note in the principal amount of $38,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on October 9, 2015. The Note is convertible into common stock, at KBM’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment.
On January 28, 2015, the Company entered into a Securities Purchase Agreement with Fourth Man, LLC., for the sale of an 9.5% convertible note in the principal amount of $25,000 (the “Note”).
The Note bears interest at the rate of 9.5% per annum. All interest and principal must be repaid on January 27, 2016. The Note is convertible into common stock, at Asher’s option, at a 47% discount to the lowest daily closing trading price of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal at 150%, interest and any other amounts.
F-34
BIOHEART, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013
On February 19, 2015, the Company entered into a Securities Purchase Agreement with Vis Vires Group, Inc. (“VIS”), for the sale of an 8% convertible note in the principal amount of $38,000 (the “Note”).
The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on November 23, 2015. The Note is convertible into common stock, at VIS’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 140% if prepaid during the period commencing on the closing date through 179 days thereafter. After the expiration of 180 days following the date of the Note, the Company has no right of prepayment."
What was that funny statement made (paraphrasing) about how "DILUTION IS NOT ACCEPTABLE IN THIS INDUSTRY" or something to that effect, LOL? Gotta find that quote- it's perfect IMO.
