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RXMD Diluted Shr Issues Since Mar-2016..
Chicago Ventures...74,515,900 shs
Midam Ventures......1,520,733 shs
Mass Ventures.......1,182,792 shs
Fully diluted shares calculated from Friday's closing pps
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
Definitely toxic, floating # of convertible shares..
Agree, its $2,205,000 with Interest and Atty fee..
Morning RXMD.. How's that toxic convertible working out?
RXMD Will need to increase authorized shares soon..
As of Friday's closing share price at $0.0296, fully diluted # shares for RXMD are as follows:
03/31/16 o/s: 349,545,207 shs
Chicago Ventures: 74,515,900 shs
Midam Ventures: 1,520,733 shs
Mass Ventures: 1,182,792 shs
Total shs: 426,764,632 shs
Authorized: 500,000,000 shs
Remaining: 73,235,368 shs
Support Lost and current descending triangle points to decline to .023
RXMD has repeatedly retreated from the 3 cent mark and now is strong resistance, so expect shares to move down faster.. last chance to bail!
You actually believe that? CVP has a network of traders who pick up on toxic convertibles and there are kick-backs on WS. Truth is no company can assure you of anything related to naked shorting..
Since the 7/22 convertible was signed 2 weeks ago stock is 18.6% down, that's 9.3%/week. I saw 1M shares sold yesterday, likely CVP shorting at this point.
Dilution: a slow but steady Decline..
3rd of a 3rd wave Down, s/b Brutal for longs..
This morning its only worth .029
RXMD: $2M Death Spiral Convertible..
A convertible bond issued by a distressed company with a conversion ratio that moves in the opposite direction of the share price. A death spiral convertible offers more shares to the security-holder as the price of shares decreases (an increasing conversion ratio), which decreases the control that common shareholders can exert by dilution. This type of convertible is used by companies who would not be able to find financing through other means because of poor financial health, also called toxic convertible, floorless convertible.
Fully diluted would come in at .012 but regular retracement without dilution comes in at .0237 so why buy at this price? Stock already had a 5 wave up move and must retrace in an abc down at roughly 61.8%
Then you should wait and buy at .012
The Fib 61.8% Retrace is around .012
Testing New Resistance at .031 then Down she goes..
It doesn't matter when the conversion takes place because the dilution from shorting the stock is done immediately. All RXMD had to do to make sure this wouldn't happen was to have a precise number of shares for conversion, rather than the lower market at conversion. However they couldn't get the loan based on shares since CVP didn't have any reason to believe the stock price would rise. They signed onto a toxic death spiral convertible, and that's what ends up happening to the share price..
Shorting the stock by CVP also increases stock dilution (by selling shares.) This process completely overcomes whatever buy interest comes in based on news as RXMD is a lightly traded OTC. Eventually they will short the stock to zero or near zero. On top of profiting from their short and guaranteeing their investment, they are then in a position to completely take over and own the company after stealing it from shareholders, all who end up selling, and in most cases at huge losses.
This is the reason anytime a company signs on to a floorless convertible they should sell immediately, as its usually the best price they will get. Companies that qualify for bank loans don't have to sell shares at whatever the market price becomes to do it. RXMD doesn't qualify for any other type of financing and has again subject its shareholders to paying the bills for them.
Next support at 2 cents, then 1/2 cent, then 0..
RXMD Shareholders pay the bills via Dilution..
First off, you're not getting $2,205,000 just $2,000,000 (8 tranches of $250k each). Then there is a 10% OID that CVP gets for interest ($200,000 in shares.. further dilution), along with the attorney fee for $5,000.
The increase in shares takes off roughly 22% from the share price adding say 73,500,000 shs to their current 339,545,107 o/s.
Since there is no certainty that the share price will rise, CVP shorts the shares for profit banking on the effects of dilution and shareholder sales due to losses, as well as other shorts taking advantage of the floorless convertible to profit by shorting.
In the end, CVP can recover all its funds by shorting to zero, and this has happened more often with these convertibles than not.
RXMD has allowed the conversion to be the lower of a nickel or market. The term 'market' is the floorless aspect of this deal, the lower the market price, the higher will be the dilution of the common stock converted. This isn't rocket science.
It is an incentive for the LP Investor to short the stock as dilution is in play as well as ultimate control of the company via # of shares required at lower market prices to pay the debt with shares. However the primary reason an Investor will short the shares is to guarantee his profits, in this case by shorting a dilutive share arrangement, his short position becomes profitable along with increasing the number of shares the company will need to convert (dilution) that increases the size of his position.
No ulterior motive here.. its elementary.
From $2M Convertible Note Financing Agreement..
.."The Note is convertible in 1 year at the lesser of Market Price or $0.05 on the date of conversion."
This direct statement from the note with Chicago Venture Partners, LP GUARANTEES that the purchase price in 1 year from July 22, 2016 WILL BE LESS THAN $0.05.
What makes this note TOXIC is reliance of the lesser price and not number of shares to convert. Therefore the stock WILL BE SHORTED BY THIS INVESTOR in order to gain more shares on conversion.
Nobody believed me when I said it was going to 02s either. 3 days ago RXMD went to 0269..
They can claim anything using unaudited financials..
Toxic Convertibles will take RXMD down below a Penny after the 02s, then sub-penny after the 01s. Remember Financials aren't audited, so investors are in the dark on operations. I would take your wager but you offer nothing in return..
RXMD will be trading in the 02s very soon..
I'm a short seller and the only person profiting here..
One Certainty is True of RXMD..
They derive shareholder cash by selling and diluting shares of the company. From the 3(a)(10) transaction to shares in lieu of salaries paid to management, to stock promotion fees, to the recent toxic convertible note. This company has proven its the same as most on the OTC.
RXMD Now Down 50% in 54 Days..
RXMD Down 48% in 54 Days..
Toxic Death Spiral..028 027 026 025 024 023 022 021 02..
RXMD Down 46.2% since June 3, 2016, my short from .051 is up 43%..
Hello 02's..
RXMD in a 3rd of a 3rd Wave Down, expect heavy dumping..
It will only get worse..
RXMD down over 40% in less than 2 months..
All that is required to be toxic is conversion based on market value rather than number of shares. The SEC has implemented recent rules that require at least 6 months prior to conversion, otherwise the Financier is deemed an Underwriter. During this period prior to conversion the Financier will short the stock knowing that the dilution upon conversion will cause a lower share price. Shorting also increases the Financier's number of shares on conversion. As stated previously, he has already obtained a 10% OID for $200K, will make 150% shorting the stock due to dilution, and will receive more shares at conversion (in case the price is able to rise afterwards.) The chart of RXMD will undergo a 2 year swoon to sub-penny in the process.