Rumours of an upcoming reverse split have been pushing down the stock price of Axia Group, Inc. (USA)(PINK:AGIJ). The continuous dilution has also contributed to the negative trend. In an attempt to buck the latter, an army of interested parties have so far initiated more than 30 promotional campaigns worth $108 thousand within this month alone.Yesterday’s release about the launch of a newly improved company product failed to produce any significant effects on AGIJ stock either. However, CEO Michael Arnkvarn remained evasive about everything else. Neither distributors, nor sales agreements were announced. In brief, AGIJ claims to have an off-the-shelf product, yet it does not reveal where customers can find it. The mystery about it raised suspicions among iHub posters, some of which even questioned if that new product exists at all.
On the other hand, what seems even more disturbing is the rapidly increasing dilution, carried out by the company’s management. While only 8% of its 1.5 billion authorized shares had been issued and outstanding as of the beginning of the month, that ratio had already hit a tenfold increase by mid-February. The picture gets more complex as select investors will gain the right to sell their restricted stock no earlier than Feb. 25. Therefore, there is a great possibility that it is this investors’ group behind the massive advertising campaign that has been taking place throughout the whole month. [BANNER]
As discussed two weeks ago, AGIJ’s finances do not seem to be of a top-notch quality. Its current cash barely covers 10% of all accounts payable in the short-term. Nevertheless, coming up with a final product on the market is often a highly challenging task for any pink sheet. By contrast, AGIJ has been developing such products, so at least it appears to be taking a lot of time and effort to make it up to all stockholders who still believe in the future success of that enterprise.
AxiaGroup, Inc. offers a final product, which is far better than not having developed one at all. To deserve recognition, however, it will have to search for, acquire and maintain a myriad of customers in a market where only the strong manage to stand out.
