Arrayit Corp. (OTCMKTS:ARYC) Gets Pulped Again

Arrayit Corp. (OTCMKTS:ARYC) got busted 32.50% down the charts on Friday in a spiral dive that seems like it is going to be the ticker’s doom.

Naturally, this turn of events was not at all surprising, to anyone that’s ever done any due diligence on ARYC. Sudden drops are hardly a novelty for dubious sub-penny OTC Markets companies that fund their activities by issuing toxic convertibles.

And judging by its filings, that is precisely what ARYC does – and has been doing for quite a while. The numbers in its financials make it quite clear – although it has reportedly made more than half a million dollars worth of revenue in the last quarter alone, it can’t really make ends meet.

As a result, it is burdened with quite a bit of toxic debt. To be completely honest, it’s unclear how much of said debt is still in the hands of noteholders, and how much has been turned into stock and dumped on the market. What is known is the fact that ARYC‘s shares outstanding grew from 64.3 million to 427.4 million between May and August 2015.

It is reasonable to assume that most of those shares have come into existence at ridiculous discounts, because of hideous conversion provisions such as “The Note is convertible into common stock, at Macallan’s option, at a 40% discount to the lowest OTCQB trading price of the common stock during the 20 trading day period prior to conversion” and “There are additional discounts of up to 25% if certain conditions are not met”.

Long story short – ARYC doesn’t have much going for it. What it does have, is a ton of toxic debt that could drag the ticker down to the bottom of the charts at any time. Which is most likely what happened in the last two trading days of last week.

Investors should take notice of these facts and act accordingly.