US Stem Cell Inc (USRM)

[Dragon Lady]

I didn't " interpret " anything. The document was filed for the very reason they did a "debt for equity swap". Table 1, box 1 of SEC document you cited, "Common Stock Conversion of debt to equity", 9/30/2013 he received 8,771,929 shares of stock. 8 MILLION shares as repayment or replacement for debt the company owed/owes him at .014 per share. It is usually preferred to be a debt (bond) holder as you are in "first position" and secured in the event of default. Bond holders ALWAYS get paid back first if a company is in financial trouble or goes to BK- you can read of enormous BK cases where the bond/debt holders at least got say, 20 cents on the dollar where as a common stock holder gets zip, nothing. My guess, only a guess- is that the debt in this case is unsecured as BHRT essentially has little to no assets (no factory, machines, buildings, factored sales, receivables, etc intellectual property would be worth who knows what if anything- most patents they have are expired)- so my guess and just my opinion is these guys, and several of them just did it, took shares and are/did hoped to sell into any strength like the recent run up and cash out for what they could get. We'll see later when they update the share holding numbers and debt owed, etc. Just my 2 cents- but that's the way I see it. If he was "long" and strong the company- then why be trying to unload shares and get out? Yes, sometimes people for personal reasons need the money, etc- but they just set it up for most of the insiders to be able to cash out a lot of shares and options recently- including some large block grants that vested immediately. That to me is not much "faith" in your company. That, IMHO is a way to cash out ASAP and get some money. But hey, that's just my "read" on it- you can see it any way you want.