Axxess Pharma Inc (OTCMKTS:AXXE) managed to record green closings early in the week, but now the momentum seems to be over as the stock price plunges sharply on chart. The news that the company has engaged legal expert to get its matters straight in its preparation for an up listing generated excitement among the investors.
It revealed that the company is serious about its up listing plans. However, the initial excitement that resulted from the bold announcement has subsided following which stock recorded loss of more than 11% in yesterday’s trading session and closed at $0.0450.The decline came at a share volume of 4.33 million compared to average share volume of 1.91 million. The market cap stands at $2.95 million.
The latest financial report for 1Q2015 reveals that Axxess had cash of $23,000. The total assets came at $475,000 against total current liabilities of $4.8 million. The net loss in 1Q2015 was $47,000 while sales came at $20,000. The company’s financials look dismal and it is one of the many problems that pop up once thorough analysis is done.
The quarterly report also highlights that Axxess had been involved in massive dilution for some time, and it appears the company has no plans to stop doing so. Ramos & Ramos Investments, a company’s note holder has received nearly 10 million shares due to extremely toxic conversions recorded in March and April.
It should be noted that all this dilution problems coincided with the series of paid promotional emails creating artificial hype that cost many investors significantly. As of March 31, 2015, Axxess reported 67.1 million outstanding shares outstanding and now the count stands at 88.4 million. The problem doesn’t ends which is evident from the company’s authorized shares count that has surged from 100 million to all way up to 150 million.