PositiveID Corp. (OTCMKTS:PSID) Tumbles Further Down

PositiveID Corp. (OTCMKTS:PSID) took another 11.58% step down on Friday, immediately after its latest 8-K hit the web, announcing that it has secured more than half a million dollars worth of funding. So what happened here?

By all accounts, acquiring $624 thousand worth of cash to fund its operations should have been good news for PSID. Well, yes – unless it also burdens the company with even more debt that converts at prices “equal to the lower of (i) $0.022 per share or (ii) 65 % of the lowest closing bid price of the Common Stock as reported on the National Quotations Bureau OTC Markets exchange which the Company’s shares are traded or any exchange upon which the Common Stock may be traded in the future (“ Exchange ”), for the fifteen prior trading days including the day upon which a Notice of Conversion is received by the Company”. Additionally, that 35% discount can be increased under various circumstances to up to 50%.

In light of this fact, it should be obvious why investors are recoiling from PSID instead of jumping at its stock. With this move, PSID has made its share structure even more unpalatable for investors – which is something of an achievement in and of itself. After all, we’re talking about a company whose shares of common stock outstanding have grown from 221 million to 565 million between March 2015 and March 2016.

True, according to its announcements, PSID has also made quite a bit of progress with respect to its scientific research since then – but at this point in time, it really doesn’t look like said achievements will be able to balance out its stock issuance shenanigans.

This is why it won’t be much of a surprise to see the ticker lose even more altitude in the days to come.