Axxess Pharma Inc (OTCMKTS:AXXE) has remained a favorite target of pumpers as its shares are held by third parties who are always looking for an opportunity to dump the stock into the market. The financial of the company are dismal and do not support a sharp jump in stock prices from current levels. In last trading session, AXXE stock prices declined 2.09% to close at $0.0843 at a massive volume of 3.28 million compared to average volume of 1.33 million. The volume is on higher side indicating that the stock is in focus now, which otherwise is a nano-cap stock.
Axxess Pharma witnessed a good run earlier in the year. The first promotional email touting Axxess Pharma was circulated in last October. As it happens with promoted OTC companies, a close glimpse at the balance sheet is enough to assess the real picture of the company. Axxess Pharma is no exception in this case.
The 2013 Annual Report of the company shows that it posted a net loss and a massive deficit in that fiscal year. The total cash balance was low compared to the deficit. Also, the company had taken loans from third parties, the principal of which is convertible to shares of Axxess in even of default. The convertible debt, huge deficit and low cash balance are some of the warning signs associated with the company’s financial performance. AXXE shares are promoted by pumps and third parties sell them at inflated prices.
It is amazing to see what paid pumps can do to OTC companies like Axxess Pharma Inc (OTCMKTS:AXXE). However, apart from pumps, the company was in news last week due to other reason. It reported that it had obtained an approval from the U.S.FDA for the sale of its nutritional supplements items and additional protein powders.