Examples of WHO WOULD BE "short" BHRT and how desperate their financial situation really is. Lets cut the hype and go to the facts, the SEC documents. I've just cut n pasted a "sampling" - it'd take hours to get all the info as it is pages long. But when you see "convertible" - think "shorting the stock" by that person providing the "financing". 2) Look at how desperate the terms of the financing are (steep share discounts) and for what a pittance of cash they bring in- $20K to less than $100K typically- survival money on a month to month basis esentially, as the cash balance line in each of those same 10-Q/10-K will show cash near zero each time. 3) Each report also contained a "going concern" letter from the auditor, as the cash trickling in from these deals is barely enough to service the debt, let alone supposedly be conducting vast "trials" and world wide operations, paying their salaries of 4 or so employees, rent, etc. This is just a sampling, all taken from the company's own SEC filings. Want to moan and groan about "shorting"- then read the names in these "financing" deals- cause they are the ones incentivized to be short the stock and they have the means to do it- being professional firms, some of them very well known on the street as "financiers of LAST RESORT" for company's on life support. What you will note is a pattern of POURING OUT SHARES BY THE MILLIONS LIKE WATER- thus the massive dilution that is easily noted by looking at the ever increasing share count with each passing 10-Q/10-K:
10-K Dec 31, 2011
As of March 26, 2012, we had cash and cash equivalents of approximately $1,700 (yep, that ONE THOUSAND, SEVEN HUNDRED BUCKS TOTAL- for a public traded company, AMAZING) and a working capital deficit of approximately $12.3 million. As such, our existing cash resources are insufficient to finance even our immediate operations.
If we are unable to secure additional financing in the near term, we may be forced to:
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curtail or abandon our existing business plan;
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reduce our headcount;
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default on our debt obligations;
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file for bankruptcy;
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seek to sell some or all of our assets; and/or
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cease our operations.
If we are forced to take any of these steps, any investment in our common stock may be worthless.
The loans evidenced by the New Magna Convertible Note are in the nature of convertible debt evidenced by two unsecured convertible promissory notes, each bearing interest at the rate of 8% per annum, payable at maturity and each convertible into common stock of the Company at a price that is 50% less than the average of the closing prices for the Company’s shares for the five (5) days prior to the Lenders’ election to exercise its conversion right.
• In January 2011, the Company issued an aggregate of 538,542 shares of our common stock in connection with the conversion of $87,729 of the convertible note.
• In February 2011, the Company issued an aggregate of 421,392 shares of our common stock in connection with the conversion of the remaining balance of $52,000 of the convertible note.
10-K, Dec 31st, 2012
Unsecured Convertible Promissory Note for $63,000, with Asher Enterprises, Inc. dated April 2, 2012
Unsecured Convertible Promissory Note for $125,000, with IBC Funds, LLC, dated January 10, 2013
Unsecured Convertible Promissory Note for $42,500, with Asher Enterprises, Inc. dated January 23, 2013
Unsecured Convertible Promissory Note for $37,500, with Asher Enterprises, Inc. dated February 27, 2013
10-Q March 31st, 2013
On January 9, 2013, the Company issued an unsecured promissory note and 2,500,000 shares of common stock with IBC Funds LLC. (“IBC”) in the principal amount of $125,000 (the “Note”).
The Note is convertible into common stock, at IBC’s option, at a 60% DISCOUNT to the average of the three lowest closing prices of the common stock during the 5 trading day period prior to conversion.
During the three months ended March 31, 2013, the Company entered into a Securities Purchase Agreements with Asher Enterprises, Inc. (“Asher”), for the sale of an 8% convertible notes in aggregate principal amount of $80,000 (the “Note”).
The Notes bear interest at the rate of 8% per annum. All interest and principal must be repaid between September 11, 2013 and November 22, 2013. The Notes are convertible into common stock, at Asher’s option, at a 42% DISCOUNT to the average of the three lowest closing bid prices
On February 4, 2013, the Company amended its Articles of Incorporation to increase the number of authorized shares to 970,000,000, consisting of 20,000,000 $0.001 par value preferred stock and 950,000,000 $0.001 common stock.
During the three months ended March 31, 2013, the Company issued an aggregate of 4,933,891 share of its common stock for settlement of $72,339 of accounts payable. In connection with the settlement, the Company recorded a loss on settlement of debt of $74,401.
During the three months ended March 31, 2013, the Company issued 2,500,000 shares of its common stock in connection with the issuance of a note payable.
During the three months ended March 31, 2013, the Company issued 1,000,000 shares of its common stock in connection with the settlement of a note payable.
10-Q June 30th, 2013
During the six months ended June 30, 2013, the Company entered into a Securities Purchase Agreements with Asher Enterprises, Inc. (“Asher”), for the sale of 8% convertible notes in aggregate principal amount of $112,500 (the “Asher Notes”).
4. The Notes are convertible into common stock, at Asher’s option, at a 42% to 45% discount to the average of the three lowest closing bid prices
10-Q Sept 30th, 2013
Cash and cash equivalents : $6,684.00 DOLLARS.
During the nine months ended September 30, 2013, the Company entered into a Securities Purchase Agreements with Asher Enterprises, Inc. (“Asher”), for the sale of 8% convertible notes in aggregate principal amount of $170,000 (the “Asher Notes”).
The Asher Notes bear interest at the rate of 8% per annum. As of the quarter ended September 30, 2013 all interest and principal must be repaid nine months from the issuance date, the last note due June 11, 2014. The Notes are convertible into common stock, at Asher’s option, at a 42% to 45% discount to the average
On August 1, 2013, advances in aggregate of $22,750 were converted into a demand promissory note with 5% interest per annum. On September 30, 2013, the Company issued 1,995,614 shares of common stock in settlement of the $22,750 promissory note.
On September 30, 2013, the Company issued 8,771,929 shares of its common stock as payment of $100,000 towards cash advances.
On November 2, 2011, the Company and Greystone Capital Partners (“Greystone”) entered into a Standby Equity Distribution Agreement (the “Agreement”). Pursuant to the Agreement, Greystone has agreed to provide the Company with up to $1,000,000 of funding for the 24-month period following the date a registration statement of the Company’s common stock is declared effective by the SEC (the “Equity Line”).
During this 24-month period, commencing on the date on which the SEC first declared the registration statement effective, the Company may request a draw down under the Equity Line by which the Company would sell shares of its common stock to Greystone, which is obligated to purchase the shares under the Agreement.
For each share of the Company common stock purchased under the Agreement, Greystone will pay eighty percent (80%) of the average of the lowest daily volume weighted average price for five consecutive trading days immediately preceding Advance Notice (the "Valuation Period") commencing the date an Advance Notice (the "Advance Notice") is delivered to Greystone in a manner provided by the Agreement. Subject to certain limitations and floor price reductions, the Company may, at its sole discretion, issue a Put Notice to Greystone and Greystone will then be irrevocably bound to acquire such shares. The registration statement of the Company's common stock pursuant to the Agreement was declared effective on February 10, 2012 and a Post-Effective Amendment was declared effective on May 7, 2013. On December 1, 2012, the parties to the Equity Line agreed that the Purchase Price be adjusted to seventy-five percent (75%) of the lowest daily volume weighted average price of the Common Stock as quoted by Bloomberg, LP, during the five (5) consecutive Trading Days (as such term is defined in the Equity Line) immediately subsequent to the date of the relevant Advance Notice.
During the nine months ended September 30, 2013, the Company issued an aggregate of 12,658,545 shares of its common stock in exchange for $200,000 draw down on the equity line.
