PositiveID Corp (OTCMKTS:PSID) Continues To Decline
Back in August PositiveID Corp (OTCMKTS:PSID) entered into a Securities Purchase Agreement in the aggregate amount of $2.4 million. In order to receive the money the company is going to issue several Senior Secured Convertible Promissory Notes that feature a fixed conversion price of $0.028. Understandably since then the stock of the company has been predominantly fluctuating around this price.
Recently however PSID has been slowly but surely dropping down the chart suffering six red closed out of the last eight sessions. After wiping close to 8% of its price during yesterday’s trading the stock is currently sitting at $0.0225. The company is having a hard time getting investors excited and even the latest PR that was issued on October 12 and provided an update on the development of PSID‘s FireFly DX polymerase chain reaction breadboard prototype pathogen detection system not only failed to push the ticker upwards but on that day the stock closed with a loss of nearly 5%.
Not to mention that on the same day an alert email by the pump newsletter OTPicks was also sent flying around. According to the disclaimer the promoter is going to receive up to 800 hundred thousand and 500 hundred thousand restricted shares for its services directly from PSID.
This is not the first time the company has tried to create some artificial hype around itself. Look no further than yesterday when PSID were part of an extremely positive PR issued by the entity the Wealthy Biotech Trader (WBT). If you scroll down to bottom of the press release you will see that the parent company of WBT has received a $62,500 convertible note by PositiveID as well as a monthly fee of $25 thousand.
We will leave it up to you to decide if this is a reasonable use of the company’s limited resources. Let’s remind you that as of June 30 PSID had:
• $672 thousand cash
• $767 thousand total current assets
• $10.8 million total current liabilities
• $51 thousand revenues
• $2.9 million net loss
Compared to the same period last year the reported revenues dwindled by over 87%. For the first half of 2015 PSID incurred a net loss of $6.7 million doubling the $3.3 million for the first half of 2014. At the same time between December 31, 2014, and June 30, 2015, over 143 million shares saw the light of day as a conversion of notes. Another 31 million shares were issued subsequent to the end of the quarter bringing the outstanding shares to 350 million as of August 7.
The risks surrounding PSID should not be taken lightly. Any trades involving the stock should be attempted only after doing extensive research and careful planning.
