Arrayit Corp (OTCMKTS:ARYC) Sinks like a Stone
Yesterday’s session was bad news for Arrayit Corp (OTCMKTS:ARYC) shareholders. The company’s share price sank by more than a third and ARYC found itself wedged in the bottom end of double zero land, stopping at $0.003 per share by the closing bell. Volume went through the roof, with 30 million shares traded over the session.
The company has maintained complete radio silence for months when it comes to official press releases, which leaves its filings as the most immediate source of information on ARYC. The information contained in those is far from rosy, though. Here is what ARYC had to show in its most recent quarterly report that was published in late August:
- ZERO in cash
- $7.9 million in current liabilities
- $570 thousand in quarterly revenues
- $437 thousand in quarterly net loss
Those figures should be enough to give more careful investors some pause. There was a faint effort to pump ARYC in August but it was of little consequence. More importantly, the Debt section of the quarterly report contains a lot of figures and information that investors might find interesting. The list of parties who hold convertible notes issued by ARYC includes notoriously toxic financiers such as KBM Worldwide Inc and JMJ Financial, among others. The notes come with fixed discounts latched onto them, with various extra conditions that can trigger further discounts.
ARYC is not exactly shy when it comes to diluting its shareholders to kingdom come either. The previous quarterly listed 64,371,019 outstanding common shares as of mid-May. By late August this number had grown to a mind-boggling 427,478,258.
The combination of all of the above should serve as enough of a red flag for careful investors.
