Arrayit Corp. (OTCMKTS:ARYC) Bounces Once More

Arrayit Corp. (OTCMKTS:ARYC) has had a turbulent month this June, with multiple peaks and crashes occurring as social media hype pushed the ticker up and heavy selling pulled it towards the bottom of the charts.

As we all know, social-media induced hype can perform miracles for the market value of OTC Markets pinksheets companies, regardless of how bleak the outlook of the company in question actually is. Case in point – ARYC.

The ticker has exploded up the charts on huge dollar volumes on multiple occasions during the last month, in spite of the mediocrity the company’s filings reveal:

  • cash – $59 thousand
  • current assets – $723 thousand
  • current liabilities – $8 million
  • revenues – $787 thousand
  • net loss – $1.4 million

These numbers are hardly worthy of praise or hype – if anything the very opposite is true. Still, that’s not the biggest red flag that a bit of due diligence on ARYC reveals. No, not by a long shot.

As is often the case with idle OTC Markets penny stocks that depend on hype to keep themselves afloat, ARYC is struggling under crushing debt. It has approximately $1.2 million worth of notes outstanding, and suffice it to say that most of said debt is quite toxic. Significant portions of it can be converted into common stock at prices as ridiculous as 60% of the lowest of the closing prices in the last 20 trading days.

Some basic math reveals that said debt can currently be used to dump shares onto the market for as little as 0.001 – and there is a possibility that a massive wave of dumping has already taken place, because:

As of May 12, 2015, there were 64 million shares of common stock outstanding.
On June 18, 2015 a record 232 MILLION shares changed hands. 

Needless to say, such a trading volume would be almost impossible to achieve without ARYC‘s shares outstanding being significantly more than 64 million.

Investors should really take these facts into consideration before they decide to load the boat with ARYC shares.

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