Borislav Tonev

Axxess Pharma Inc (OTCMKTS:AXXE) Drops By A Fifth

by Borislav Tonev September 19, 2013
AXXE.pngSeptember's been quite an eventful month for Axxess Pharma Inc (OTCMKTS:AXXE, AXXE message board). There's been stock promotions, exciting news, increased volumes, rallies in the green direction and painful drops.

It all started just minutes after the opening bell on September 3 when The Stock Psycho a/k/a Darth Trader, along with a few other promotional newsletters sent out a couple of emails telling us about the huge news coming out of AXXE's HQ. Naturally enough, the pumpers didn't do it for free and they were honest enough to admit that a third party by the name of Ramm Venture Developments has paid a total of $75 thousand for the campaign.

If you check out our previous article, you'll see that Ramm Ventures owned 2 million shares of common AXXE stock. Whether they have managed to get rid of it or not is unknown, but the fact remains that the trading volumes were increased and the price took a severe blow. On September 3, the first day of pumping, AXXE fell by about 16% and a couple of days later, another 25% were wiped out meaning that the ticker plummeted from $0.90 per share to just $0.52 in a matter of three sessions.

This is not the first time Ramm Ventures have participated in a paid pump. According to our database, they were also the paying party in the promotion for Wind Works Power Corp (OTCMKTS:WWPW) back in July 2011 (the price has dropped by about 88% since then) and when you dig a bit further, you'll also find that there were some complaints against them for stock manipulation schemes involving another small cap venture - SIPP International Industries, Inc. (OTCMKTS:SIPN). The most curious thing of all, however, is the address of Ramm Ventures' principal offices. According to the link containing the legal actions, they are headquartered at 2681 Eglinton Ave in Etobicoke, Ontario. The exact same location serves as AXXE's business address. Coincidence? We'll let you decide.

Around September 10, the alerts disclosing Ramm Ventures as the paying party stopped, but the promotional pressure continued. Stock Mister took over yesterday as the most influential pumper and according to their disclaimer, they have received an even more impressive $90 thousand for their efforts. The third party this time is an entity called Ramos & Ramos and, once again, we find a similar name in AXXE's filings. According to the latest quarterly report, an enterprise called Ramos & Ramos Investments Inc. is owed some money, $171 thousand of which should be paid off within the next twelve months. Scroll further down and you'll see that they have the right to convert the current portion of the loan payable (both the principal amount and the interest) at any time. Once again, we can't be sure if they have done it or not, but, just like last time, the price was punched to the ground. Six and a half hours of trading were enough to wipe out a fifth of the value and the record-breaking volume of 929 thousand shares suggests that quite a lot of stock was sold.

Throughout the last three weeks, AXXE have tried to aid the promotional effort by issuing optimistic press release after optimistic press release about new additions to the management team, Memorandums of Understanding to acquire assets from serious pharmaceutical companies etc. but it's quite clear that they have failed and a good reason for this could be found in the latest financial statement. According to it, as of June 30, they had:

  • cash: $148
  • licenses: $424 thousand
  • current liabilities: $521 thousand
  • no revenue
  • quarterly net loss: $93 thousand

It's pretty clear that $148 in the bank won't turn them into a leader in the pharmaceutical industry. Having all the above facts in mind, it actually seems like AXXE is nothing more than a vehicle for some people to make some money. Unfortunately, we doubt that those people include the regular investors like you.

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