PositiveID Corp. (OTCMKTS:PSID) Drops Below A Penny
PositiveID Corp. (OTCMKTS:PSID) returned straight to double zero land yesterday – and is it really any wonder that it did so?
After all, the ticker’s latest ascent was driven entirely by the hype created in the wake of PSID‘s announcement that it has successfully detected the Zika virus on its Firefly Dx polymerase chain reaction. However, while it is good that in this instance, PSID‘s science checked out, as we all know, OTC Markets hype never lasts. It dissipates fairly quickly, and when it does, the ticker that benefited from its boost is left hanging.
At this point in time, it seems very likely that this is precisely what happened to PSID. Well, either that, or the consequences of the company’s past stock-related shenanigans have once more caught up with it.
To elaborate on the previous statement – as of March 2015, there were 221 million shares of PSID common stock outstanding. Last time the company gave investors a share count, which was about two months ago, there were a staggering 565 million SO.
It should be obvious how this is detrimental to PSID investor value, especially seeing as how the vast bulk of the company’s convertible notes currently outstanding carry provisions allowing note holders to turn them into stock at a rate of “62.5% of the lowest VWAP during the 15 Trading Days immediately prior to the applicable amortization date”, or even as low as “55% of the lowest VWAP during the thirty (30) Trading Days immediately prior to the applicable Conversion Date”.
So, what’s the reason for PSID‘s continued crash in the last three sessions? Its hype jump ran its full course? The toxic funding still haunting investor value cut its ascent? No one can be absolutely sure, and it’s up to investors to judge the risks involved. As usual, we recommend diligence and vigilance when dealing with volatile penny stocks.