PositiveID Corp (OTCMKTS:PSID) Compensates for Monday Slip

Following a red session on Monday that sent the share price of PositiveID Corp (OTCMKTS:PSID) below its 200-day moving average, the stock bounced back yesterday and made up for the slip. By the closing bell PSID was sitting at $0.024 per share, on volume of 7.9 million shares traded.

PSID has been keeping a relatively low profile on the press release front. The company last put up an official announcement on Oct 12, informing investors that development of the Firefly Dx prototype – the company’s flagship product – has hit a major milestone. The Firefly Dx is a detection and diagnosis tool for point-of-need use that uses polymerase reaction to detect pathogens.

The new Firefly now has real-time optics implemented in its design, which in turn enables monitoring fluorescence measurements. In layman’s terms, this helps first responders with identifying and understanding the quality of the test and the amount of pathogen in the sample in the testing unit.

The company’s latest available quarterly report for Q2 contains the following:

  • $672 thousand in cash
  • $10 million in current liabilities
  • $51 thousand in quarterly revenues
  • $2.9 million in quarterly net loss

Those uninspiring financials have changed after the signing of a share purchase agreement in mid-August. The entity purchasing shares was none other than infamous OTC toxic financier Dominion Capital LLC. The deal involved the issuing of a number of convertible notes for the total amount of $2,400,000. Surprisingly, Dominion agreed to convert the notes into shares at a price that was virtually on the same level as the market price on the day of the signing. Traders might still want to keep in mind that there is a provision stipulating that under any event of default on part of PSID, the “alternate conversion price” triggered by such an event represents a 45% discount from the VWAP of PSID stock 30 days prior to conversion.

Rifling through the latest quarterly reveals that PSID is no stranger to issuing convertibles that have embedded provisions for discounts, so traders may want to keep this in mind as well.

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