Previous use of "Toxic Financing" via Ironridge
I'm trying to understand the potential impact of the decision to increase shares.I was interested in buying Monday, but then saw the discussions here. I found an article that mentions PSID's earlier involvement with private financing a few years ago.
Toxic Financings: A Case Study For Small Cap Retail Investors
By E. Michael Greenberg (Smallcapnetwork)
Sep 17, 2014 5:24:32 AM |
This is the paragraph I'm referring to:
"Delistings are nothing new here. PositiveID Corporation (OTCMKTS:PSID) ended up being delisted from the Nasdaq shortly after announcing a deal, initially reported to worth up to $13.8million, with Ironridge. The firm would later acknowledge that it never received the anticipated funds. In fact, it claimed that the deal was to be revised to involve lower funding and months later said that there was no funding. Inevitably, the firm nosedived and its position in the market plummeted." I think this happened in 2011.
I suggest you read the entire article, as many of the companies Ironridge has financed have closed their doors & left a lot of bag-holders. I also found it interesting to review all the filings on PSID's website. Seems like a lot of monthly stock being issued to financiers at significant discounts. Makes me question management and wonder if we are getting all the facts.
Then there was this recent one (Hotstocked)
PositiveID Corp. (OTCMKTS:PSID) Crashes by a Third
by Georgi Kamburov October 7, 2014
"Even if you believe in the potential of the technologies developed by PSID the red flags are too massive to be ignored. The constant dilution, the crushing working capital deficit and the mounting debt demand the use of caution when dealing with the stock."
Anyway, food for thought.
