PositiveID Corp (OTCMKTS:PSID) Crashes Hard
In yesterday’s session PositiveID Corp (OTCMKTS:PSID) tripped and fell 22% down the charts. The stock shifted its second-highest volume for the past month at 11.7 million shares changing hands as the ticker took a last-minute nose dive ahead of the closing bell. PSID stopped at $0.018 per share.
The company last put up an official filing on Dec 7, announcing an amendment of its acquisition agreement with Thermomedics Inc. For those who don’t know who Thermomedics is, it is, or was, a subsidiary of one of 2014’s biggest disappointments – Sanomedics Inc (OTCMKTS:SIMH). SIMH rode the ebola anxiety wave hard in late 2014, trading at over $0.50 per share last October. By January 2015 SIMH was trading at sub-pennies.
The Caregiver thermometer, misleadingly advertised by SIMH back in 2014 as the “only clinical grade non contact thermometer”, despite abundant evidence to the contrary, is the focus of PSID‘s latest press release. The PR informs that Thermomedics transferred control to PositiveID and PSID replaced top management and director positions in the acquired entity.
The fine print under the PR states that the acquisition deal will likely close in Q1 of next year. The actual 8-K detailing the amendment to the agreement states the transaction is expected to close in “in the first or second quarter of 2016”.
PSID is dropping $250,000 in cash and $150,000 in the form of Series J convertible preferred stock to acquire Thermomedics.
In a previous article we discussed the obvious lack of enthusiasm among traders about PSID‘s latest quarterly and its “record revenue” reported. The $2.5 million reported in the latest 10-Q is really previously deferred revenue from a Boeing agreement that was received in full back in 2012, meaning it simply showed up on the books just now and PDIS had barely any ongoing revenue generation in the quarter, despite the announcement.
