World-Class Bioscience Solutions While Respecting the Environment
Fundamentals
Overview:
HQ: New York, NY
Incorporated: 2010 as Axim International
Symbol: AXIM
Exchanges: OTC
CEO: George E. Anastassov, MD, DDS, MBA
Focus:
Axim is a small (only 6 employees) but very active New York-based cannabis R&D company with partners in product development and university research. It has several focusses, including development of CBD-based pharmaceutical and nutraceutical drugs, plants and oral health products.
Size:
Market Cap: $111 mil
Enterprise Value: $179 mil
Size within cannabis industry: 100+ of 200
# of employees: 6
Markets: Good
Geographically, much of the developed world. (It claims to currently have a nutraceutical product in all 50 states and 40 countries–though with extremely small sales).
Subsidiaries, Interests:
Majority Subsidiaries:
– it fully-owned subsidiary CanChew Biotechnologies, AXIM is the manufacturer of CanChew Gum ™; CanChew Gum™: The first patented, industrial Hemp-derived CBD-rich chewing gum which is legal in all 50 states in the USA.
Operations: Good
Intellectual property:
Axim’s intellectual property (IP) portfolio includes: three issued patents – one licensed patent for chewing gum containing cannabinoids, including THC; and two patents for ophthalmic (eye) solutions to treat glaucoma and conjunctivitis; and twelve patent applications in various stages.
Clinical Trials:
Axim announced positive clinical trial results from its first phase II pilot trial for the treatment of irritable bowel syndrome (IBS) with its CanChew+® 50 mg CBD controlled-release chewing gum.
Production:
Axim has established a full chain of production, including extraction, purification, conversion and microencapsulation.
Distribution:
The company sells its products through Internet, direct-to-consumer health and wellness stores, collectives, cooperatives, and affiliate sales and master distributors. It has developed a nutraceutical product which is on the market in 50 states in US and 40+ countries
Integration/Diversification: Good
Vertically integrated: Yes, it does sell through Internet and direct to consumers, but we cannot tell how much of this they will do if their products become big.
Horizontally diversified: Yes. It has many products in development. Many could fail, but if 1-2 become big, they might pay off all other costs.
Financials: Hold (no revenue yet)
Earnings/Revenue/Cost control:
Management: Good
CEO, CFO: Dr. George E. Anastassov.
CTO: Mr. Lekhram Changoer
CSO: (science) Dr. Philip A. Van Damme DMD, MD, Ph.D.
Valuation: Neutral
Current share price: $1.96
Price to Sales: 2,574 (Biotech industry = 7)
EV / revenue: 4,145 (Biotech industry = 7.7)
EV / revenue rank in industry: N/A
Risks: High
The risks of investing in any cannabis company are very high given the immaturity of the market and all competitors. This company has additional risk in that 1) its products are in development and have not yet been proven to work enough to prove there a strong market. 2) it has virtually no revenue yet.
Recommendation: Hold