Axxes Pharma Inc (OTCMKTS:AXXE) Turns Red Again
Axxes Pharma Inc (OTCMKTS:AXXE) managed to jump on hype for two consecutive sessions, but now its momentum seems spent and the ticker is once more headed down – hard.
The announcement that the company has hired legal help to get its affairs straight in preparation for an up-listing made quite a splash as it demonstrated that AXXE is serious about the whole endeavor. However, once the initial wave of hype following the bold announcements passed, the ticker plummeted – which is only natural, since it had nothing else holding it afloat.
Truth be told, the former statement may seem a bit harsh at first glance, but some due diligence on AXXE reveals it to be more than accurate. For instance, the company’s latest financial report, for Q1 2015, shows the following disconcerting figures:
- Cash – $23 thousand
- total assets – $475 thousand
- total current liabilities – $4.8 million
- Sales – $20 thousand
- Net Loss – $747 thousand
The company’s financials look mediocre – and that’s just one of the many red flags that pop up once some digging is done.
Even a casual browse through sections F-13 and F-14 of AXXE‘s quarterly report yields the realization that the company and been drowning investor value in dilution for some time – and does not look like it is planning to stop doing so. One of its noteholders – Ramos & Ramos Investments – has received upwards of 10 million shares as a result of extremely toxic conversions that happened in March and April.
Investors should duly note well that all of this dilution shenanigans was accompanied by an unceasing downpour of paid pump e-mails creating artificial volatility that cost many investors dearly.
Another noteworthy detail is the fact that, as of of March 31 AXXE had 67.1 million shares outstanding. As of late, the dedicated section in its OTC Markets profile shows it has 88.4 million. However, that does not seem to be enough for some people’s purpose, and thus AXXE‘s authorized shares have been increased from 100 million to 150 million.
So, the only real question here is – how can the ticker NOT fail, in the face of such obviously suspicious behavior on AXXE‘s part?
