Axxess Pharma Inc (OTCMKTS:AXXE) Crashed Fast

In the first trading session after the long weekend, Axxess Pharma Inc (OTCMKTS:AXXE) got some attention from several pumper newsletters. The hype dissipated in about 15 minutes and AXXE crashed.

At the end of the session, the price was 75 cents per AXXE share, representing a 16.67% drop. The volume was an absolute high in the short trading history of the stock, reaching 884 thousand shares.

The most influential pumper newsletters involved in the current AXXE pump were Darth Trader and The Stock Psycho, both operated by Focus Media. Focus Media was compensated $50 thousand for the pump effort.

There are a number of reasons for the pump to cause AXXE to crash. For starters, according to the disclaimer, the party which paid for the pump was Ramm Venture Development. A quick look at AXXE‘s most recent report reveals that the same entity had been issued 2 million common stock shares.

The majority of pump jobs are done in order for someone to dump shares of an illiquid stock, but it’s fairly rare to see such an obvious connection. The financial report mentioned above also reveals that AXXE has limited assets and hasn’t generated any revenue.

This underwhelming financial state doesn’t put AXXE in a favorable position to acquire anything, let alone a “leading Canadian OTC healthcare company.” AXXE announced on Monday an MOU to acquire one such company.

The insignificant cash position of AXXE doesn’t prevent it from announcing MOU’s, but it would seem to hinder any actual acquisition, at the very least one which wouldn’t hurt current shareholders. While yesterday’s crash was significant there’s plenty of room below the current price.