AXIOLOGIX INC (PINK:AXLX)’s Pump Finally Pays Off
Last week a couple of newsletters introduced us to AXIOLOGIX INC (PINK:AXLX). They told us that AXLX is a great company and that the potential profit that can be yielded from it is huge. We checked them out thoroughly and we weren’t impressed with what we managed to find. Nevertheless the emails kept on coming but, unlike other promotions, they had little effect. Until yesterday, that is.
Yes, a lot of emails were sent and a lot of promises for wealth and fortune were made and after more than a week of nothing happening, AXLX finally broke out yesterday. The volume went through the roof and the share price doubled. The third parties paying for all the pumping should be pleased. But was it all due to the newsletters?
Well, we checked the company profile at OTC Markets and we saw that AXLX have filed a new document. We were hoping to see a new financial statement that shows us some better figures than the last one, but it wasn’t meant to be. In our previous article, we mentioned that AXLX‘s shareholders have been subjected to some massive dilution and, as if to back these claims up, the management team have filed a report that lists all the shares that have been issued during 2012 in a neat, chronological order. If the report is to be believed around 1.5 billion shares of common stock have been given to various individuals and companies during the period between January and December 2012. Some names appear more often than others and we see that companies, well-known for providing toxic financing to small cap ventures, hold strong positions. We also saw that the name “David Dunne” appears quite often. In total, he has received 45 million unrestricted common shares at a huge discount. The stock was issued as part of a convertible note.
Since there’s no additional information about the note itself, we decided to see if we will be able to find something more about Mr. Dunne. We checked and we stumbled upon an article about a lawsuit in which a person named David Dunne is a alleged of a breach of fiduciary duty and negligence. Apparently, he was acting as a board member at a company called MF Global when the misconducts took place. Of course, we can’t be sure that this is the same person, but since we found out last week that the current CEO of the company, Vincent Browne is prosecuted by SEC for securities fraud, it’s only normal to be just a little bit suspicious.
It wasn’t only the emails and the filing that caused the price to jump that high, though. There was also a press-release. And it’s one of the most confusing ones that we have ever read. The purpose of pres-releases, in general, is to give current shareholders as well as potential investors some more information about the developments around the company. This one states that AXLX are about to acquire a very successful VoIP company that supposedly has $5 million worth of revenue every year. Which is the company in question? Your guess is as good as ours. AXLX say that before they can reveal the name of their future subsidiary, there is some more due diligence to be done. In other words, we don’t know which is the company that is going to be acquired, and we can’t even be sure that the whole thing will work out. Because of this, there are no details about the deal itself as well. Quite a lot of unknowns, you would agree. That’s why we still remain skeptical towards AXLX‘s long-term success.
The fact that they have been featured in dozens of emails over the course of a week is also a cause for concern. The promoters touting AXLX are quite a few but the most stubborn one seems to be Inside Bulls. They aren’t the best source of investment advice, as people who believed them about Global Earth Energy Inc (PINK:GLER) can assure you. This pump took place on February 14 and GLER have already lost around 70% of their value. It’s a real danger that the same thing might happen to AXLX so it’s essential to weigh your risks carefully.
