Arrayit Corporation (ARYC)

[Delsurfer]

Was reading through some of the court docs further and thought I'd share a couple more interesting passages. I highlighted for emphasis.

If Iconic is allowed to convert the shares and sell them into the public market, Arrayit will be irreparably damaged. (Schena Decl. ~ 31.) First, Iconic's conversion request puts Arrayit in breach of the Subordination Agreement as TCA is entitled to priority conversion rights. (Id.) Second, the value of shares Iconic is attempting to convert is well in excess of any purported sums Arrayit owes Iconic. (Id.) Not only is the amount in dispute, but it can be paid with money, not in shares. (Id.)

By Iconic's calculation, as evidenced on the conversion request, it is requesting conversion of shares four times the face value of the original note. Iconic's conversion request amounts to a unlawful windfall and may be argued is usurious. Thus not only is there no harm to Iconic, be denying Arrayit the relief sought in this Ex Parte, Iconic will be awarded an undeserved windfall.