Another Round of Pumps For Axxess Pharma Inc. (OTCMKTS:AXXE)
The stock of Axxess Pharma Inc. (OTCMKTS:AXXE) gets pumped quite often these days and we see a lot of action. After the initial promotion in the beginning of January things started to quiet down, but it seems that this week will be hot.
The pumpers start sending emails, touting AXXE‘s stock every couple of days. The latest batch of pump emails started flooding our inbox on February 9 and they keep on coming. The compensations range from $8 thousand to $15 thousand and we see that Ramos & Ramos LLC (the company that apparently holds a large number of AXXE shares, which we wrote about in our previous article) is listed as the paying party in a lot of the disclaimers again.
The company itself is trying hard to promote its stock and we see press releases every few days. The promotional campaign and the press releases seemed to be unable to make a positive impact on the company stock. That, however, was until yesterday, when we saw a good increase in price and a boom in volume.
Alongside the paid promotional effort, AXXE announced that it has entered into an exclusive dustribution agreement for their TapouT® brand of beverages with a company from Queensland, Australia, called HardCore Beverages, which would allow them to expand their business.
And even though AXXE has been speaking about the development of the company and their headlines are filled with news of expansion all over the world, the numbers in their annual report for the quarterly period ended December 31, 2013 say a whole other thing.
- cash and total assets: $100 thousand
- liabilities: $109 thousand
- revenues: $2.4 thousand
- net loss: $8.2 thousand
It seems that the company has finally started generating revenue, but at this point it is quite small. What’s more interesting is that the liabilities listed in the report are a lot smaller than those from their previous report and there is absolutely no explanation about how that happened. It just says that management has used estimates, which means that the real picture might be quite different.
Furthermore, the website of the company that they have partnered with for the sale of their beverages in Australia was created on November 15, 2013, which is just 3 months ago and looks a bit suspicious. The latest financial report is also somewhat fishy and doesn’t really give us a good idea of the current situation in the company.
This is the exact reason for which we would advise you to do your due diligence and weigh out the risks, especially when dealing with heavily promoted stocks.
In the medical marijuana sector, Hemp, Inc. (OTCMKTS:HEMP) is still generating high dollar volumes, but is sliding further down as it lost 26% of its value yesterday. The situation with Cannabis Science, Inc. (OTCMKTS:CBIS) is similar as they dropped 20%.
