Axim Biotechnologies Inc (OTCMKTS:AXIM) shares have been ramping higher in an aggressive bounce over recent days. Technically, the move comes following a firm hold of support just under the $4/share level, with volume ramping significantly in the last two days, as the stock broke back above its falling 50-day simple moving average.
However, in this case, technicals are taking a backseat to the company’s recent announcement. Specifically, the company just announced that it has entered into a Memo of Understanding with a leading Korean specialty pharmaceutical company for the commercialization of two of the Company’s cannabinoid-based proprietary pharmaceutical applications, CanChew+ and MedChew, in South Korea. Traders may recall that the eventual commercialization of these products was a massive driver for the stock in late 2016 and early 2017, when shares ramped from under $0.50 per share to nearly $20 per share in just over three months.
Axim Biotechnologies Inc (OTCMKTS:AXIM) bills itself as a biotechnology company that focuses on the treatment of pain, spasticity, anxiety, and other medical disorders with the application of cannabinoid-based products.
It also focuses on the research, development, and production of pharmaceutical, nutraceutical, and cosmetic products, as well as procurement of genetically and nano-controlled active ingredients.
The company was formerly known as Axim International Inc. and changed its name to AXIM Biotechnologies, Inc. in July 2014. AXIM Biotechnologies, Inc. was founded in 2010 and is headquartered in New York, New York.
According to company press materials, “AXIM® Biotechnologies, Inc. (OTC:AXIM) focuses on the research, development and production of cannabis-based pharmaceutical, nutraceutical and cosmetic products. Our flagship products include CanChew®, a CBD-based controlled release chewing gum, and MedChew Rx, a combination CBD/THC gum that is undergoing clinical trials for the treatment of pain and spasticity associated with multiple sclerosis. We prioritize the well-being of our customers while embracing a solid fiscal strategy.”
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As discussed above, this former speculative momentum favorite has been acting as if it’s back in gear in recent days. Shares of the stock have blasted higher over the past week in response to news that the company is finding new commercialization outlets for its flagship product line.
The move is also notable as it represents the company’s initial foray into establishing an international distribution footprint. In this case, the company is tapping the South Korean market, which may be seen as an entry point into a larger overall Asian distribution strategy.
“Preparation for international market expansion is vital at this stage of our company’s growth,” said George E. Anastassov, MD, DDS, MBA and Chief Executive Officer of AXIM® Biotech. “As the regulations and public perception of cannabinoid-based therapeutics shift toward acceptance throughout the world, AXIM will be ready to capture as much market share as possible for treatments of various indications. We have seen promising results in our initial studies that we hope to bring to a worldwide audience upon approval from regulatory officials.”
Traders will note 75% piled on for shareholders of the stock during the trailing week, but this action is running counter to the larger trend in the name. This is emblematic of the stock. AXIM has a track record that includes a number of dramatic bounces. Moreover, the listing has registered increased average transaction volume recently, with the past month seeing approaching 130% beyond its prior sustained average level.
Earning a current market cap value of $261.5M, AXIM has a store ($2.1M) of cash on the books, which stands against about $5.4M in total current liabilities. One should also note that debt has been growing over recent quarters. AXIM is pulling in trailing 12-month revenues of $48K. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 26.6%. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $AXIM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $AXIM, either long or short, and we have not been compensated for this article.