US Stem Cell Inc (USRM)

[Dragon Lady]

Uh oh, SINKING Bid, SINKING Ask there for a moment or two into that prior down spike to .0088, sub .009 again; not looking too good here IMO? Next stop is .0085 below that .0088 block on the Bid. MM's using the super wide, 10% plus spread to try and get a few takers way up at .0099 it looks like, right now.

Whoah, the dilution boys are getting serious again looks like. So that's it apparently- the entire BHRT "news cycle" from PR's to "slide shows" to big "grand new plans" (which to me personally make zero sense) to now the 10-K and the "revenues" and all- and it's selling off pretty hard again in bursts and spurts.

No real buying interest in here at all that I can see? I see a new 52 week, and all, all, all time low on the horizon IMO. I'd guess this revisits the .007 area or lower in the next few months.

I can't see a single catalyst that's gonna overcome or create enough buying pressure here to counteract the just massive, massive 10's and 10's of millions of dilution shares that they've now created or will be issuing due to their essentially never ending use of toxic, convertible debt financing deals. They just did THREE MORE toxic "note" deals as recent as Feb 2015, just a little over one month ago.

As an example- how dilutive can a little ole $38K "toxic" note actually be?

Well, they are giving 45% to 47% share discounts on those toxic notes, and they're "floorless" - meaning no bottom to the price on um.

So as an example, if one of those lenders were to convert this week based on a "the avg price of the past 10 trading days" blah, blah, blah- and lets suppose the avg price is .009 for those 10 days.

.009 X .47 discount = .004. .009 - .004 = .005 they get their shares for. Yep.

So a pittance of $38K cash converted at .005 = 38,000/ .005 = 7,600,000 shares of mass dilution it costs for a measly $38K of cash. BHRT has $100's of thousands in deals like this right now- either being converted now or in the "hopper" to be converted any day now, or the coming next 6 months, near continuously.

$38K costs 7.6 MILLION dilution shares that then get sold into the market. MAGNA alone already has 12 million + 20 million = 32 million or so shares in their hands as of the 10-K filing statements, and more coming to them.

There's at least 100 MILLION dilution shares coming onto the market in the next 6 months or less IMO, at least that much if not more. If the price drops more it gets even more drastically worse as the dilution just skyrockets that much more, those firms then sell/dump even more shares, drive the price down more, convert again for more shares, wash-rinse-repeat till it's literally .000X per share possibly.

My .009 cents worth.

Dilution and use of "convertible debt" aka "toxic debt" has consequences IMO, always, and now it's really coming home to roost for BHRT IMO. Really hitting full scale now as they just keep using toxic financing and issuing 10's of millions of shares to no end- once again even "paying common bills" with shares of stock in this latest 10-K.

http://www.sec.gov/answers/convertibles.htm

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

The Bloomberg article is one of the single, best written pieces I've personally ever read describing penny stock "toxic financing" and what happens in "death spiral" finance deal scenarios. See the graphic of the "spiral" on the left column border area of the article- it explains it all in simple terms IMO. Excellent piece of financial journalism from one of the most respected financial journalism sources in the world, Bloomberg.