US Stem Cell Inc (USRM)

[Dragon Lady]

$USRM: Comella Resignation Making News Cycle Now..oh no...

Well, the negative news cycle is beginning, and I think will likely blow wide open tomorrow, Monday. Tomas didn't issue that SEC 8-K on a Friday, after close of market cause it's "good news".

Interestingly, Comella resigned (or was fired, I don't necessarily even buy it she quit, I think they gave her the option to be fired or quit, as she's bankrupting what's left of this nothing "company") - the 8-K says she resigned on Sept 1st, that was Sunday last week.

A company has 4 business days to file the 8-K, so I'm not even sure of CEO Mike Tomas didn't commit another SEC violation by waiting to file on Friday, which looks like 5 business days to me?

https://ipscell.com/2019/09/kristin-comella-resigns-from-embattled-clinic-firm-us-stem-cell/

Here's some of the first negative news about Kristin Comella jumping off the burning wreckage (resigning, quitting, being fired- whatever it was) of U.S. Stem Cell Incorporated, 13794 NW 4th St Suite 212, Sunrise, FL 33325, USA 954-835-1500

She's no longer a board member and no longer the phony "Chief Science Officer" w/ the fake Panama PhD and all the rest of the BS they peddled all these years. They've scrubbed her off the company main website, like right out of Orwell. And Comella's BS "bio" on her Facebook page- doesn't even mention working for U.S. Stem Cell Inc any longer, not a word in her "work history bio", scrubbed it all, LOL !

http://us-stemcell.com/

http://us-stemcell.com/about-us/

The faux "board of directors", including the 95 or 96 yr old scarecrow "Chairman" William P. Murphy of Coral Gables FL (CEO Tomas is from Coral Gables too, imagine that, LOL! Gee? ) who's overseen this entire fiasco supposedly, LOL ! Does the dude even know they got sued by the DOJ, did they tell him yet? The guy hasn't been seen or heard from in what - like almost 2 yrs now, but supposedly runs this train wreck as "Chairman"? Do they even have real "board meetings" as a public traded company?

How is the CEO even still there- as the stock has lost a literal 99.99% of it's value "on his watch", he got um a swell DOJ lawsuit, numerous other lawsuits, and the "company" (a few people in a tiny leased center in FL) is near BK and broke at any given time for all the years he's been the CEO as he and Comella collected massive paychecks and bonuses and "other" perks sucking this gig dry as a bone in the desert? And for that, the dude has been CEO since mid 2010, LOL? Really?

And they supposedly have a "functioning" real board of directors, enforcing their fiduciary duties to shareholders- I call BS. They should be sued via a shareholder suit - for what's left of the carcass, just as a matter of principal IMO.


https://ipscell.com/2019/09/kristin-comella-resigns-from-embattled-clinic-firm-us-stem-cell/

Headliner:

"Kristin Comella resigns from embattled clinic firm US Stem Cell"

And

"US Stem Cell, Inc. reports in a new SEC filing that its key leader Kristin Comella has resigned as of September 1.

I never thought I’d see the day when Kristin Comella and US Stem Cell, Inc. parted ways.

To me Comella seemed like the driving force behind the company, which is now subject to an injunction after a big federal court loss. It is appealing the ruling, but faces a tough road ahead in my view.

From the new SEC filing:

“Effective September 1, 2019, Kristin Comella resigned as a member of the Board of Directors of the Company and has left her position as Chief Scientific Officer. There were no disagreements by Ms. Comella as to the Company’s operations, policies or practices.”

What’s going on?
Why did she resign?

Who’s really in charge now? (the current leadership page for USRM doesn’t list Comella any longer).

What will be the company’s focus now moving forward with new leadership and can it keep on going?

Lots of questions, few answers.

I would have predicted that Comella would be along all the way for the continuing battle through the appeal. I see this resignation as suggesting that something else major may be going on with the firm or Comella or both. Whatever that “something” is, it’s probably not good news for them.

It may be interesting now at a kind of end point for the Comella/US Stem relationship for readers to go back to my interview with Comella 4+ years ago when we got some of the first inklings of the direct-to-consumer push by her company, then in a sense still called Bioheart.

More broadly, 2019 continues to be arguably the worst year for unproven stem cell clinics ever. While there are still hundreds of them out there, their future does not look promising in my opinion. The FDA is keeping up its elevated level of actions on clinics. The clinics won’t be able to run Google ads anymore. There are many patient lawsuits. Clinic suppliers are also drawing more attention, criticism, and FDA action too. The FTC has taken action and may take more. State AGs and medical boards are paying more attention.

2020 may be even worse for the clinics and their suppliers. This is all good news for the overall stem cell field and for patients, but there may be more confusion and ups and downs before the dust settles somewhat.
"

End Quote

That is from the highly respected blog and news site of thee real "stem cell scientist" Dr Paul Knoepfler, of U.C. Davis, you know, a real PhD and more. He's one of the leading people in the United States tracking the rogue and illegal "pay to treat" so called "stem cell clinics" and now the various FDA, the Department of Justice and "other" govt agencies acting against same.

I'd say that U.S. Stem Cell Sunrise Florida is headed for BK, aka Bankruptcy before this is over- it won't end well IMO.

Just read the "event of default" triggers for just the CEO Mike Tomas "GACP Lease Back deal" sham-wow special, that bought them some more cash to shovel off to each other as mega salaries and to pay lawyers and now much else.

It lists a "key persons clause", a very common mechanism in certain loans and contractual obligations. Well, it lists two of the "key people" as CEO Tomas who now works for GACP LLC of FL and "Kristin Comella", that if either one were to quit, be fired, resign, etc then that triggers an "event of default" on the approx $500K stem cell banking lease-back "deal" Tomas cooked up with GACP and his buddies their, ole Joseph DaGrosa and David Neithardt.

http://search.sunbiz.org/Inquiry/CorporationSearch/SearchResultDetail?inquirytype=EntityName&directionType=Initial&searchNameOrder=GACPSTEMCELLBANK%20L170000054090&aggregateId=flal-l17000005409-e4bbb53d-0dfa-4a9a-803d-edb08d92b102&searchTerm=gacp%20stem&listNameOrder=GACPSTEMCELLBANK%20L170000054090

Here is the SEC filing for the GACP stem cell banking lease-back that gave Tomas a wad of cash to blow- a big chunk that went right to him as bonus pay for supposed "notes owed" to him. Milking this sub penny dry as usual.

https://www.sec.gov/Archives/edgar/data/1388319/000118518517000536/usstemcell8k030817.htm

https://www.sec.gov/Archives/edgar/data/1388319/000118518517000536/ex2-1.htm

Read that:

"“Designated Employees” shall mean Michael Tomas, Kristin Comella and Julieta Radiche."

Boom - well, Kristin Comella left. And that is a triggering event.

Next:

"Default" means any of the events specified in Section 13.01, which constitutes an Event of Default or which, on the giving of notice, the lapse of time, or both pursuant to Section 13.01 would, unless cured or waived, become an Event of Default."

Next:

Section 13.01 Events of Default. Each of the following events is an "Event of Default" under this Agreement:

And:

"(k) if Lessee does not use its best efforts retain any Designated Employee and any of the Designated Employees is no longer employed by Lessee;
"

And there ya have it, they are now official in default with GACP as just one example- many other loans, key business contracts may also be in default and can get "called" or result in more lawsuits based on Kristin Comella quitting this rat infested mess and sinking ship.

It's only going to get worse from here if you ask me - I think it will be in the national news by mid next week at the latest, Comella has been the face of the rogue, illegal pay-to-treat stem cell clinic and BS "we can cure anything with stem cells" snake oil sham wow BS since she helped start the entire mess- with U.S. Stem Cell Florida Inc behind it all, as her cash cow.

Who's going to pay her enormous personal legal bills now- Tomas can't shovel money or shares to her via some back door BS "Family plan" anymore, not with the SEC watching them like they are now.

How did she get money to pay for her latest Biohacker "healthclub" bull crap BS that she and hubby Shawn Mann are running now in Weston, did they shovel money out of this cash broke sub penny stock sham to fun that too? She appears to get money from nowhere else- yet somehow funds that club start-up and pays all her massive legal bills too?

I personally think she's going to face criminal charges before this is all said and done, maybe they fired her in reality, maybe as the Wolf Of Wall Street put it so well, "Her chickens are coming home to roost" as Mad Max his dad would say- and he would answer, "Whatever the f$%ck that means", LOL !

Stick a fork in it - I think this is the beginning of the final end, at 1/2 a rotten cent, and one dude left now as "management", ole Tomas from the tel-com business, what's he going to do now? Lawsuits choking um like a horse, paying mega bucks law firms- but no more toilet paper stock to dump. What, go back on the toxic, convertible debt train and keep milking the gig, where else would he get money for this dying corpse of a hollowed out penny shell?

Backed, well done if you ask me. That's my 1/2 cents worth on this dead horse- bury it, upside down, or just send it to the glue factory, it's over IMO. Last one out of Sunrise, hit the light switch on the tiny, now sub-leased, nothing of a "world headquarters".