Axxess Pharma, Inc. (OTCMKTS:AXXE) On A Pump-Fueled Climb
We last covered the stock of Axxess Pharma, Inc. (OTCMKTS:AXXE) back in September when the company began its rapid descent from $0.9 to just 20 cents at the start of October. Since then the stock slowed down its drop but still moved downwards reaching a new 52-week low of $0.143 on December 23. The pessimistic performance of the stock was accompanied by numerous positive PR articles issued by AXXE that had only minimal effect on investors.
One possible explanation for that would be the grim financial state of company. According to the latest quarterly report at the end of September they had:
- $74 thousand cash and current assets
- $547 thousand current liabilities
- ZERO revenues
- $93 thousand net loss
Although the company has not been diluting their common shares at any alarming rates in the past they have given 4 million shares as gifts.
Another huge red flag is the past involvement with paid pumps. The aforementioned huge crash in September happened largely due to then ongoing promotion for the company. In the course of the campaign there were two paying parties: Ramm Venture Development who were issued 2 million shares and Ramos & Ramos, a name similar to Ramos & Ramos Investment Inc. who are owed more than half a million by AXXE.
The current positive trend displayed by the ticker is also facilitated through a pump. The first email touts arrived on January 7 and by now the total number has swelled up to more than 30. Ramos & Ramos are once again paying for all this giving $37 000 to Global Marketing Media. They operate through several newsletters – TheStockScout, Penny Stock Circle, Penny Stock Players. In turn Global Marketing spread the money around hiring Sherwood Ventures and its affiliates TheStockHideout, Penny Stock Finder, Penny Stock Craze for $15 000.
With all the artificial hype flying around AXXE started to gather momentum but yesterday it simply exploded. On the absolute record for the company number of 2.4 million shares it returned to price ranges of $0.3. The last two PRs from the company surely did their part in creating attention. On January 8 AXXE announced that the initial order of their TapouT pain relief products in Canada has been sold and yesterday they revealed a new product – TapouT Extreme Muscle.
This may mean that AXXE have finally started generating revenues which is a huge step for the company. Still the stock is surrounded by red flags and any investment should be preceded by serious due diligence.Yesterday the truly massive hype that has been pushing all the marijuana pennystocks to disproportionate heights the last two weeks once again lost its power. GreenGro Technologies, Inc. (OTCMKTS:GRNH) doubled its price on the first day of the week but on the very next day went down again losing 10% and closing at $0.432. Cannabis Science Inc. (OTCMKTS:CBIS) also fell down by 11% to arrive at a little more than 10 cents per share.
