AXIM Biotechnologies, Inc. engages in the research, development, and production of pharmaceutical, nutraceutical, cosmetic, and genetically controlled botanical products. The firm is also involved in the extraction and purification of cannabinoids based on its proprietary formulation technologies. They used to develop CBD chewing gum but have recently pivoted to Covid-19 and anticancer applications. This hemp stock recently matched it’s 2021 highs from February – but is AXIM Biotechnologies a buy?
Let’s take a closer look at both the fundamentals and technicals for AXIM Biotech to see if this hemp stock is a buy:
AXIM Biotechnologies Fundamentals
Profile
HQ: New York, NY, USA
Founded: 2010
Symbol: AXIM (OTC)
Focus: Neutral
Axim is a small but active New York-based cannabis R&D company with partners in product development and university research. It has several focuses, including the development of CBD-based pharmaceutical and neutraceutical drugs, plants and oral health products. Recently they’ve tried to market and test their recombinant virus binding protein products for covid-19 applications.
AXIM Company Size: Neutral
Market Cap: US $94.7 million
Enterprise Value: US $100.6 million
# of employees: 5
Related: AXIM® Biotechnologies, Inc. Files Provisional Patent For New Cannabis Product
Markets: Strong
Secondary: Europe
Majority Subsidiaries: CanChew; Sapphire Biotech
AXIM Company Operations: Neutral
Cultivation: None
Intellectual property:
Axim’s traditional intellectual property (IP) portfolio includes: cannabinoid themed 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 for other cbd formulations. Recent patents also follow the covid theme: one for a face mask designed to capture covid-19 viral particles and one for a rapid diagnostic test for neutralizing antibodies for covid-19 uses. These have driven recent pricing chart gains but does that make AXIM Biotechnologies a buy?
Related:Axim Biotech Enters Canada Through Partnership With Revive Therapeutics
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:
Vertically integrated: Yes
Horizontally diversified: Yes
Financials: Weak
Revenue (ttm): $0
Outstanding shares (diluted): 128.9 million
AXIM Company Management: Neutral
CEO: John Huemoeller II
CFO: Robert Malasek
Founder: George Anastassov
CTO: Alim Seit-Nebi
The recent acquisition of Sapphire Biotech brought on new CTO, CSO, and co-founders of Sapphire to the management group of Axim.
Branding: Weak
None yet with no products fully developed to be sold.
AXIM Company Valuation: Weak
Current share price: US $0.765
52 week high/low: $0.21-1.44
Price to Sales: N/A (no sales)
EV/Revenue: N/A
Price/book: 60.49
Financing: Weak
They have just over $457k on hand with debt of $6.34 million. Not a good ratio if you are trying to develop drugs and take them through clinical trials.
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. But should you not buy AXIM Biotechnologies because of this?
Bottom Line: Is AXIM Biotechnologies a Buy?
Axim Biotechnologies used to focus on the development of cannabinoid formulations for clinical indications in CBD chewing gum and ophthalmic indications. Now they are almost exclusively focused on oncology and covid-19 applications. Their website highlights recent patent wins in covid-19 testing, face masks, as well as cancer diagnostics. Their pivot is definitely complete.
It is an exciting time to have patents issued for recombinant virus binding proteins for sars-covid-19 indications. They also have a recently approved covid-19 diagnostic test measuring levels of neutralizing antibodies. These gains are on the back of their recent acquisition of Sapphire Biotech, an oncology company with lead compounds to inhibit cancer metastasis in vivo. These exciting headlines have contributed to multiple spikes in their stock price. Is this sustainable though?
The real value in Axim is the drug pipeline they secured from Sapphire. If any of these anti-cancer drugs do successfully move through clinical trials, they would be a homerun. This is very expensive and risky though and the company has very little cash on hand. They’ll have to raise funds soon.
Axim is all over the place in the last four years. From a cannabinoids drug development company, to PPE during Covid, to an anticancer company now. Their website doesn’t even mention cannabinoids currently. Their best shot at revenue now, which is desperately needed, is through diagnostics for viral testing (neutralizing antibodies, blood tests etc). These revenues will be small and untimely. They need to do something fast. For all the reasons above, this stock gets the weak rating.
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