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Should wait for the Pump phase, RXMD is now in the Dump phase..
The A/D line is the best indicator of Dilution. Notice since early June-2016 the RXMD chart went down while the A/D line did not. This shows that the buying did not win out to the dilution..
Serb, just cut a check to the CEO and eliminate the commission..
As shareholders you paid over $12M on bills for a company with a net worth of basically zero as their assets of $1M are roughly equal to their liabilities. Wouldn't you fare better buying into a company that pays you rather than you paying the bills for the company? Like companies that pay you dividends for being a shareholder?
All toxic convertibles have in the contracts they are not allowed to short the shares because technically its illegal, but they all do. And more often than not, they share in the proceeds with the company principals..
Its a bit more concerning than that with the Chicago Ventures convertible note being a floor-less contract that with investor shorting could bring the conversion to shares much higher than 74M shares and in fact causing the obvious dilution with naked shorting being seen now.
History of RXMD Dilution thru Mar-2016..
Issued to Original S/H………………………2,280,000…… 2007
Issued for Debt………………………………3,000,000……2008-2009
Issued for PharmCo Acquisition………….30,000,000……2010-2010
Issued for Services……………………….……302,261……2010-2011
Issued for Services-Armen…………….……1,385,596……2010-2011
Issued for Debt………………………….……1,098,973……2010-2011
Restated Original S/H Issue………….……-1,718,000……2010-2011
Issued for Debt………………………….……..196,078……2011-2012
Issued for Services…………………….……….60,000……2011-2012
Issued for Services-Armen………….………..424,983……2011-2012
Retired PharmCo Issue……………….….-12,208,432……2011-2012
Issued for Debt………………………………2,500,000……2012-2013
Issued for Services……………………….……234,885……2012-2013
Issued for Services-Armen…………………...150,000……2012-2013
Issued for Services-Armen…………………5,000,000……2013-2014
Issued for Debt-3(a)(10) ……………………8,362,000……2013-2014
Issued for Debt-3(a)(10)…………………273,913,000……2014-2015
Issued for Services………………………...20,000,000……2014-2015
Issued for Debt………………………………6,083,985……2014-2015
Issued for Bonuses………………………..10,977,716……2014-2015
Retired Debt Issuance-3(a)(10)…………-12,497,838……2015-2016
Total……………………………………….339,545,207
Issued Share Summary:
Issued to Original S/H…………………………562,000
Issued for PharmCo Acquisition………….17,791,568
Issued for Services-Armen…………………6,960,579
Issued for Other Services…………………20,597,146
Issued for Bonuses…………………….…..10,977,716
Issued for Debt…………………………...282,656,198
Total…………………………………….…339,545,207
Subsequent Contracts to Cause Further Dilution..
03/30/2016: Midam Ventures....Stock valued at.......$45,000
04/06/2016: Mass Ventures.....Stock valued at........$35,000
07/22/2016: Chicago Vetures...Stock valued at...$2,205,000
(These currently come to approx 78.8M shs at today's pps)
RXMD only has 500M shares authorized, expect to see this increased!
Typical Chart Showing Dilution, same pattern as RXMD..
https://toohightoolo.files.wordpress.com/2015/04/img_8260-1.png?w=625
Maybe after the Reverse Split RXMD sees .05 again and that happens after they increase the authorized shares.. Dump & Dilute!
You didn't see the tops at .05+ either, I did..
Next Support at .023
A good broker to start with is Suretrader, they also have a trading platform w/L2..
https://suretrader.com/
I've used IA for years, they also have all the bells and whistles but require higher deposits. Key is that they have the most shares available for shorting than other brokers.
https://www.interactivebrokers.com/en/home.php
Shorting pennies is expensive and require high margins when you can even get the shares, and none so far allow naked shorting by the public.
GL!
Looks like .0254 Bid gets hit tomorrow..
$.028 at 4:00.57 (Low of Day)
Holt69, its the politicians you have to payoff for the license fees, not the actual fees themselves - Lol! As for paying back the loan, they aren't going to.. you get to pay their loan off with diluted shares..
RXMD isn't profitable enough to payoff $2.2M, besides their cash flow will be pretty bad paying out license fees, so meanwhile the pps should drop with the naked short dilution going on..
All I do is short this stock and make $$.. everyone here knows that, anymore Qs? If I had a billion bucks I would short every pink OTC company out there and become a mega-billion buckaneer because it works 98% of the time!
Its a floor-less convertible (ie: Death Spiral toxic debenture) the debt is convertible at whatever market is on conversion, not a set number of shares as in a normal debenture.
Naked shorting is going on which is Dilutive. Financiers short the stock prior to conversion so they can cover the loan with profit. On conversion they get the shares to cover the short positions.. What part of toxic convertibles don't you understand here?
Nobody is seeing the elephant in the room..
This toxic dilution will eventually cause a reverse stock split and a further spiraling down of the share price.
From $.054 high stock is down 47.97%
From $.035 Convertible stock is down 19.72%
Its a Big Elephant people..
Since Convertible Note.. Shares Down 19.72%
July 22, 2016 close was at $0.035
I responded a 2nd time post 47434. I am a CPA, you didn't catch on that there is a difference between capital and regular leases is all.
As I responded previously see post 47432.. What's your point? You obviously don't understand how to account for Capital Leases. The assets are recorded like a purchase, its just the notes that are treated differently.
What's your point? You obviously don't understand Accounting for Capital Leases..
Since Convertible Note.. Shares Down 18.58%
July 22, 2016 close was at $0.035
FYI.. Its likely both the robotic system and vehicles are Capital Leases rather than straight out purchases.
It was purchased on TERMS with a balloon at the end of 3 years. The implied interest is included in the $150K + Sales Tax.. So it isn't cash!
It was a correction to Eric1983 post 47404 saying RXMD paid cash for the robotic system, when it was financed.
They financed the robotic system - From 10K
Note 11. Subsequent Events
Subsequent to year end, On Januaray 20, 2016, the Company signed an agreement to purchase ScriptPro’s CRS 225
robotic prescription dispensing system, which is one of the newest additions to ScriptPro’s line of compact robotic
machines. The CRS 225 can hold up to 225 individual medications and fill over 1000 prescriptions per day with 99.7%
counting accuracy. Under the terms of the agreement, the machine will be installed in PharmCo’s facility upon
completion of the site expansion build-out, which is currently in the permitting phase of completion. The total value of
the system is approximately $150,000 plus sales tax. This amount is payable under the following terms: upon
installation, the Company will pay $2,000 per month for 35 months. The balance remaining will be due in full at the
end of the term.
They took out a secured note on the robotic system..
If RXMD could have gotten better financing than the toxic convertible they would have. The money they are getting is coming directly from unsuspecting penny stock investors like you via stock dilution. But worse than that, there is no floor to the price this convertible will cost you in stock dilution because its not based on # of shares. So as the financier shorts the stock, more shares become necessary to pay him off. Once he is satisfied that his note is covered and a profit is earned, the shares he gets on conversion is how he covers his naked short positions which are already in progress of taking down the share price.
Because its obvious and not a lie..
Definition of Toxic Convertible Note (Per Nasdaq.com):
Toxic Convertible -
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. Also known as death spiral convertibles or floor-less convertibles.
(Note also that the shares when converted are used by the financier to cover his short position, normally taken out when the note is signed, which was July 22, 2016. The shares closed that day at $0.035)
How the RXMD Convertible Bond Works –
Objective:
Getting stock from a company to the financier to the unsuspecting public, while getting money from the unsuspecting public to the financier to the company.
Method:
The company sells the financier a convertible bond in a private placement. The financier sells stock short, until he has sold enough shares to recoup his investment in the bond and make a profit. Then he converts the bond, gets the shares and closes out his short.
Typical Situation:
1. A small troubled public company wants money.
2. All it has to exchange for that money is its own stock.
3. It is shall we say inconvenient for the company to do a regular underwritten public offering of its stock, because such an offering would require a lot of expensive and awkward disclosure of just how troubled the company is, or because it would be hard to find buyers for all that stock at once, or both.
4. And it is not legal for the company to just secretly sell stock into the market without doing a public offering.
5. So it decides to place the stock privately with a smart financing source.
6. It's not like the smart financing source wants the stock either! You don't get to be a smart financing source by buying penny stocks of troubled companies and holding onto them.
.03 is strong resistance, .01s are next..
Chances of RXMD making the big time is 126900 to 1. Add to that the CPI Inflation calculator and you would have made zero on the investment (aside from dividends).. The only way to beat cash in the market is stocks paying dividends, otherwise the IRS taxes you on inflation. Most people don't realize that..
But its also rather obvious. Look at my post #47330 for RXMD History of Dilution. They've charged shareholders with bills totaling in excess of $10M to pay the bills, and the company's assets are a mere $1M with $1M in liabilities.. we're talking near-zero equity on this company.
They would not have needed a convertible note if they thought they could pay cash for the warehouse and licenses, so its rather obvious they will be diluting shareholders and not paying the note..
The post Mar-2016 shares have already been contracted for the cash and receivable on the convertible debt instrument, hence they are subject to GAAP conversion on a fully diluted basis at the last closing share price. On the books you have $250,000 cash received, $1,750,000 note receivable, $200,000 prepaid interest, $5,000 prepaid attorney fee and $2,205,000 convertible debt payable. The conversion is subject to reporting on a fully diluted basis according to GAAP.
The GAAP term is "fully diluted shares" for basis computation. All conversions up to Mar-2016 have already been converted at market.
Fully dilutive basis according to GAAP Acctg..