Arrayit Corporation (ARYC)

[TESLA777]

Why do these guys need the toxic convertible note financing?? If they have the type of revs they are claiming, why did they need more money the end of 2016?? Can they pay this off with cash?? or will it be shares??

http://irdirect.net/filings/viewer/index/1084507/000165495416004585/

SECTION 1 – REGISTRANT’S BUSINESS AND OPERATIONS

Item 1.01 Entry into a Material Definitive Agreement

On October 25, 2016 with an effective date of October 21, 2016, the Company and its subsidiaries as guarantors (collectively, the “Credit Parties”) entered into a Second Amendment to the Senior Secured Revolving Credit Facility Agreement by and between TCA Global Credit Master Fund, LP, a Cayman Islands limited partnership (the “Credit Agreement” and “TCA,” respectively and effective December 18, 2015) as amended by a First Amendment to the Credit Agreement on April 18, 2016, whereby the Company was approved for an additional $400,000 loan under the Credit Agreement (the “Additional Advance”). The Second Replacement Revolving Note, in the principal amount of $1,674,484 which aggregates all obligations due and owing to the Lender by the Credit Parties, including the Additional Advance as of October 21, 2016, has substantially the same terms as the initial $750,000 and $250,000 loans. On October 25, 2016, the Company received $267,799 after (i) the escrowing of $67,801 for payments to professionals and others in connection with bringing the Company’s audited and unaudited financial statements current; (ii) payment of $42,500 to accounting professionals; (iii) payment of $20,500 in fees due TCA and its professionals; (iv) miscellaneous payments of $1,400.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

See discussion in Item 1.01.

Item 9.01 Financial Statements and Exhibits

10.7 Second Amendment to Credit Agreement by and Among Arrayit Corporation as Borrower, Telechem International, Inc. and Arrayit Scientific, Inc. as Guarantors, and TCA Global Credit Master Fund, LP as Lender effective October 21, 2016 and executed on October 25, 2016.

10.8 Second Replacement Revolving Note ($400,000) between Arrayit Corporation, as Borrower and TCA Global Credit Mater Fund as lender effective October 21, 2016 and executed on October 25, 2016.