Only problem with that is, I don't believe there's ever been a single indication that the "private placement" (carefully worded to say "up to" $20 million) ever went anywhere.
All indications from each 10-Q has been that BHRT has been doing nothing but paying "Northstar" back money as interest and loan/debt payments. And most recently, I believe that all, Northstar insiders are converting out some of the debt to equity (recent SEC docs posts showing how many shares each one got).
So I don't know what to make of that? Personally, I've seen BHRT put out a lot of similar PR/statements in the past, only to never hear of them again, or see anything materialize from them- just my take on it, but I've made that observation many, many times with these guys. In other words, search deep in the 10-Q's and see if any mention of that "private placement" or any specific new "capital funding" has ever shown up since that PR/blog about Northstar "private placement"- I don't believe you will find anything. In fact, as stated, it's the other way around- BHRT has been paying back to Northstar each period.
The only "funding" sources I'm aware of have come from direct sale of shares by BHRT to various "finance houses" and that's what's accounted for the outstanding share count rising by over 100 million shares in less than the past 9 months or so. I can't find any other source really of money injected than that by reading the SEC docs?
The idea that Northstar could go out and "easily" raise a chunk like $20 million or so in the investment climate of the past few yrs would be daunting to say the least. The value of BHRT market cap has not even been close to that amount until only the past few weeks and the climate for capital raising has been tough, other than using debt because interest rates are so low. But to use debt, you have to have assets which they really don't have. I know people in the "private equity" biz, these are guys with unbelievable pedigrees: like Stanford undergrad at top of class on full scholarship, then ran various businesses as CEO/buy-out specialist for a while as a "turn around expert" then Harvard MBA, published author, been on CNBC (woke up one AM - and there he was on TV with a new book he wrote being interviewed, I was like- I KNOW THAT GUY), rubs elbows in the D.C. area and Georgetown with filthy wealthy people and the politically connected, etc. I ran into him fairly recently as I know his brother and I asked him how "the biz was, and was going" and his exact words were "it's tough and tough sledding right now and not like it was back in the go-go days". He recently sold off a mansion (literal mansion- Architectural digest featured and all) and has down scaled a bit- flying commercial first class versus private jet, $3.x million dollar home after selling the $10.X million dollar home- you know, really cutting back lol. When he comes into town to visit his family- he's always in a rented Range Rover or BMW SUV or something, goes and plays golf with key people (always doing business no matter where he is- and he was a near pro level golfer, Stanford golf team n full ride scholarship on golf)- it's "elbow rubbing" endlessly in the "capital raising biz"- this guy's rolodex (modern cell phone contact list) must be an amazing site to look at. He shows up in socialite mags and newspapers throwing a party at one of his mansion homes or with his artwork collection or wine tasting hosted event- and it's nothing but mega wealthy name dropping going on, people who can light their fireplace with money they're so loaded.
No knock against BHRT, but if you look at who's in charge of Northstar- the guy, as far as I can tell, has zero experience at ever doing a "private placement" and/or going out and raising significant capital. I won't name names, but you can easily look up which guy it is, and what kind of business he had/has and ran- it has nothing to even do with technology or bio-tech. So, how that kind of guy would just hit the streets, and approach high net worth individuals to raise a big chunk of money (which is what a private placement is all about- you have to approach people with certain, minimum net worths, minimum high income levels, etc)- how that guy could pull that off to me would be very surprising. As stated, the people I know that do this full time will tell you it's a brutally tough biz, and they rub elbows with the who's who, they run entire "funds" they build/raise for private equity and so forth and host endless mansion parties with the "in crowd" to get money sloshing around, etc.
So, I don't know that the "$20 mil Northstar placement" ever amounted to anything. Nothing I have read or seen tells me it went anywhere. That's my take on it- so I'd read that with a grain of salt IMHO. My opinion only- maybe someone else knows more about it- but I'd think if any of that money did come in, it'd be plastered all over the past 10-Q's, and I just don't see it.
