Arrayit Corp. (OTCMKTS:ARYC)’s Surge Didn’t Last

At the beginning of yesterday’s session, it certainly looked like Arrayit Corp. (OTCMKTS:ARYC) could climb even higher up the charts, but unfortunately for the company’s supporters, it ended up slumping 13.33% instead.

As the charts indicate, everything seemed to be going well and the ticker looked stable, until the burst of activity that occurred just before 3 PM knocked ARYC off its perch and plunged it into the red zone.

As usual, it is difficult to gauge exactly what caused the crash, but a plausible explanation would be that one or more of ARYC‘s numerous note-holders decided to cash in on some of its toxic debt.

A bit of due diligence reveals that the company has $1.2 million declared next to “notes payable” in the current liabilities list in its latest financial report. A brief look at the “notes outstanding” section of the report determines that some of the debt can be converted at prices as ridiculous as 60% of the lowest of the closing prices in the last 20 trading days.

This means that the peak of yesterday’s climb would have been the perfect opportunity to cash in on some toxic debt. It would be difficult to verify that this is the case, but in light of the company’s history of dilution, it doesn’t seem unlikely at all:

As of May 4, 2014, there were 39,522,098 shares of common stock outstanding.
As of May 12, 2015, there were 64,371,019 shares of common stock outstanding.

Remember when we warned that share dumping may be a huge threat to investor value in ARYC‘s immediate future? Well, it looks like it is already taking a serious toll.