Axiom Corp (OTCMKTS:AXMM) has been working on restructuring the business model of its subsidiary, PaperNuts Corporation. The company has executed an amendment agreement with share holders targeted at share exchange and common share retirement. At the moment, an agreement has been reached with three of the founding share holders only. This would mean that a total of 40 million common shares of the company would be retired, in return the share holders can take Series A preferred shares or Series B preferred shares, with voting rights.

A total of 2.67 million Series A preferred shares and 1.02 million Series B preferred shares would be used for this purpose. Once the agreement is completed, the preferred and common shares held by Axiom and PaperNuts would remain restricted from any sort of trading, as per rule 144 of the SEC. Additionally, the step reduces the voting power of the share class by 50%. Furthermore, the changes would result in a total of 3.3 million shares being reduced. Subsequently, if the share holders want, they can convert their Series A and Series B preferred shares back to common stock at the ratio 1:10. Every common share is worth 10 Series A or Series B shares.

The share restructure is a positive step for the company towards improving its share holder value. Unfortunately, given the depressing state of the company’s 1Q2015, investors have remained particularly uninterested in the company. AXMM for its 1Q2015 had just $137,000 in cash, 11,301 in revenues and a quarterly net loss of $384,000. However, the share restructure has taken care of at least one red flag around the company, as it is seen moving away from dilution. Whether the company intends to do something similar with the financial structure of AXMM, is yet to be seen. Currently, AXMM is also involved in a paid pump, which the company states it is not associated with in any way.

Axiom Corp (OTCMKTS:AXMM) traded 1.08 million shares during the June 25 session to reach a close, after crashing by 26%, at a share price of $0.185.