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Lots more for people to lose on RXMD.. Money flows from shareholders into the coffers of the OTC Company and its Financier, very lucrative!
I can assure you the stock will be much lower by then. The investor has already begun shorting RXMD. By the end of a year he will have made 150% of his investment back by shorting, have collected the $200K (10% OID) at inception, and become the owner of mega thousands of shares priced below a penny.
Toxic Convertibles..
Used by companies that are in such bad shape, that there is no other way to get financing. This instrument is similar to a convertible bond, but convertible at a discount to the share price at issuance and for a fixed dollar amount rather than a specific number of shares. The further the stock falls, the more shares you get. Popular in the mid to late 1990s. Also known as death spiral convertibles or floorless convertibles.
Death Spiral Financing..
A loan that investors give to a publicly-traded company in exchange for convertible bonds. The convertible bonds give the investor a right to buy shares in the company at a low, agreed-upon price. However, issuing these bonds creates more shares outstanding when they are converted, which results in a drop in the share price. The low share price encourages more bondholders to convert their bonds to equity, which causes a further drop in price and the process continues. Because of this disadvantage, companies only engage in death spirals if they badly need cash.
Convertibles are TOXIC because the lower the price an investor can short the shares to, the more shares he can convert the bond into. This is how most OTC companies get destroyed. Management is aware of this, the funds they are obtaining will get converted into their own salaries and they can increase their wealth by also shorting the shares knowing this is the game plan of the investor. Read up on convertibles and Toxic Financing if you think otherwise..
What you have here is an investor who gains by shorting the shares, and this is what you saw today when the pps went below 3 cents. This is called TOXIC FINANCING, and its how OTC companies get destroyed.
Note 4 Liquidity.. From 10-Q 03/31/16
During the three months ended March 31, 2016 the Company had net income of approximately $0.1 million and positive cash flow from operations of approximately $34,000. The Company believes that it has adequate capital to operate over the next 12 months. However, additional funding will be necessary to complete planned expansion initiatives. To address its financing requirements, the Company will seek funding through offering equity or convertible debt securities to individual and institutional investors. The outcome of these matters cannot be predicted at this time.
Historically, the Company has had operating losses, negative cash flows, and working capital deficiencies. Now that the Company has changed its focus and eliminated the majority of its debt, it is still uncertain whether the Company can sustain profitability and positive cash flows from operations. Also, the Company is uncertain as to whether it can obtain financing to execute growth objectives.
On September 28, 2012, Armen Karapetyan agreed to an offer of settlement from FINRA, an SRO, without admission of any wrongdoing to voluntarily forfeit his securities licensure and accept permanent bar from 68 engaging in securities activities at a broker dealer.
Armen Karapetyan
RXMD Manager, Control Person
Common Shares Beneficially Owned: 21,532,016 Shares– 6.34%
Preferred Shares Beneficially Owned: 51 – 100%
All from 10-K 12/31/2015
RXMD Current and Future Financing Needs..From 10 Q-03/31/2016
We have an accumulated deficit of $3,321,291 through March 31, 2016. We have spent, and expect to continue to spend additional amounts in connection with implementing our business strategy. Based on our current plans, we believe that our current cash may not be sufficient to enable us to meet our planned operating needs.
However, the actual amount of funds we will need to operate is subject to many factors, some of which are beyond our control. We have based our estimate on assumptions that may prove to be wrong. We may need to obtain additional funds sooner or in greater amounts than we currently anticipate.
Potential sources of financing include public or private sales of our shares or debt and other sources. We may seek to access the public or private equity markets when conditions are favorable due to our long-term capital requirements.
We do not have any committed sources of financing at this time and it is uncertain whether additional funding will be available when we need it on terms that will be acceptable to us, or at all. If we raise funds by selling additional shares of common stock or other securities convertible into common stock, the ownership interest of our existing stockholders will be diluted.
If we are not able to obtain financing when needed, we may be unable to carry out our business plan. As a result, we may have to significantly limit our operations and our business, financial condition and results of operations would be materially harmed.
What do you expect from an OTC selling shares to pay the bills with a manager that's been banned from FINRA for illegal trading? Duh!
You should review the recent 10-Q for RXMD and be advised they definitely INTEND to continue selling shares.. they ADMIT it! You are looking DILUTION in the face Dead Ahead for their expansion plans!
But then there are all those soft costs eating shareholder shares like the recent Market Awareness and Web Development expenses taking $140,000 of which $80,000 was in shares that Longs get to pay. Add that to their bungling of payables that caused them to enter into a 3(a)(10) agreement with creditors amounting to the sale of 273,913,000 shs compliments of RXMD shareholders.
Strong Wave 3 DOWN Today will Hurt Longs!
When I cover my Short from the double-top high..
$0.031 Got Busted Today.. .02s are Coming!
Get ready for the CRASH!!
I had already covered my 150K short and posted it, gaining $2500. At that time it was unsure whether a Wave 5 top was in or not, I assumed the chart was in a Wave 4 and covered. The Wave 5 top was a failure at a lower high and made a double top, so its a sure thing this move will bring RXMD in the 2 cent range as the ABC decline is in progress.
I don't gamble.. just betting here on a sure thing to the Downside!
Compare the red bar days to the green bar days and know which direction RXMD is headed, and it ain't up..
Another HI-Volume Down Day!
Resistance at .044, Support at .031.. Flipper Stock!
Very Low Volume Rise, rally has no legs.
Mean Gap Down this morning, heavy downside volume, RSI and MACD confirming a failed 5th top at .0539 should tear thru .03 easily.. this stock will break hearts and bank accounts!
Back up from what levels? I see .015 in the Charts..
You'll get a better buy in the .01s..
25% Down in one Day on Heavy, Heavy Volume Longs..
20% Down in 1 Day on Heavy Volume Longs..
Do you believe me now?
"As I posted last week.. RXMD has a failed 5th wave to a lower high, expect stock to re-test lows below .02"
I'm just a trader on RXMD, its not up to my investment standards..
As I posted last week.. RXMD has a failed 5th wave to a lower high, expect stock to re-test lows below .02
RXMD has completed 5 waves up, RSI and MACD confirming. The 5th wave was a failure at .0539 compared to wave 3 high of .054 so you can expect a retrace back to the .015 level in the coming months..
And I stand by it.. Sub Pennyland Dead Ahead!
Profits for Expansion? Really? Then why did RXMD sell $15M in stock during the 1st Q-2016? They sold 73.9M shs on the 3(a)(10); 20M shs on Consulting; 6M shs on paying off Debt, and 10.9M shs on Employee Bonuses. How many shares do you think they will need to sell for Expansion when they still aren't paying their bills with cash? DUH!
RXMD Never Made a New High - Double Top.. Down she goes!
Lower hi means New Lows Ahead.. Look for .02 next!
.03 is no bottom, .005 would be, Sell!
.032 gets breached tomorrow, then .03
Short 150K shs, I mainly use Interactive Brokers, but its difficult to get shares and can be expensive. I also have an account with Tradestation. Other short-selling OTC brokers include Sure Trader and Speed Trader. I also have an account with Just2Trade for cheap daytrading at $2.50/order.
10 Days Below 50MA.. * BEAR FOOD *
RXMD Never Passed .054 so confirmed DOWNTREND & I went Short!
Dead Cat is all at .03 then onto .001