On the combined effects of the promotion and the planned second for this year acquisition, AXLX stock closed the last trading session with at $0.09 with a 11.76% increase in the share price. The trading volume was 604,000 shares and it was the highest in the stock’s trading history. Technical indicators show that there could be additional upside potential today, but promotional surges of that kind usually do not last that long.
The promoter declares to have received $60,000 for the advertising and promoting services directly from the company. Right before the promotional newsletter was sent, Axiologix released a press announcement, saying that the company has signed a letter of intent to acquire the assets and the existing revenue stream of another educational software company whose name did not get disclosed.
If that new acquisition actually takes place, it is likely that the acquisition price consists again of shares of AXLX common stock and thus dilute additionally the company’s shareholders. As of end November 30, 2010 Axiologix Education has no revenues since inception and its only assets are about $10,500 in cash and $50,300 in prepaid expenses. Also, there are convertible notes outstanding with a carrying value of $178,000. Some of the amounts due are convertible into common stock at a rate of $0.066 per share, other have conversion rate of 50% of the lowest closing price of AXLX during the previous 20 trading days from the notice of conversion.
That dilution risks should not be ignored, even if the business is actually starting to build the fundamental base. At the end of January, the company acquired the E*Pad software platform in exchange for 10,000,000 shares of common stock and $120,000 in cash payable in equal weekly installments of $2,500.
