Axim Biotechnologies Inc (AXIM)

[Det_Robert_Thorne]

$850K of convertible notes eligible in two weeks
In November, I wrote the following about new convertible notes announced in AXIM's 3Q/16 10-Q:

BTW, there is a new $850K convertible note on the books that can begin converting at $0.22/share in mid-March, 2017, and the noteholder, TL-66, LLC, has the option to lend another $4.2M.

According to the 10-Q, TL-66 purchased the AXIM notes on Sept 16, 2016, and since it isn't a beneficial shareholder or insider, the six month period before the notes are eligible for conversion will end on March 16, 2017 (or possibly March 20, because Feb had only 28 days).

With a maximum conversion price of $0.22/sh, the conversion of $850K of debt will add a minimum of 3.9M sh to AXIM's OS.

As with other companies with convertible notes at a very low conversion price, I expect that TL-66 will use VNDM or VFIN to handle the sales.

Doubt me about the dates and the amounts? See the following from page 14 of the 10-Q:

On September 16, 2016, we entered into a convertible note purchase agreement (the "Convertible Note Purchase Agreement" or "Agreement") with a third-party investor. Under the terms of the Convertible Note Purchase Agreement the investor may acquire up to $5,000,000 of convertible notes from the Company, with various closings, under terms acceptable to the Company and the investor as of the time of each closing. Pursuant to the Agreement, on September 16, 2016 the investor provided the Company with $850,000 secured convertible note financing pursuant to four (4) Secured Convertible Promissory Notes (the “Notes”). Each of the Notes mature on October 1, 2029, and pay 3.5% compounded interest paid bi-annually. The Notes are secured by the assets of the Company, may not be pre-paid without the consent of the holder, and are convertible at the option of the holder into shares of the Company’s common stock at a conversion price equal to the lesser of: (i) $0.2201 or (ii) 80% of closing price of the Company’s common stock as of the date of conversion. These financial statements reflect a derivative liability of $1,062,500 which gives effect to such conversion and the corresponding decrease in Notes Payable. The balance on the Note as of September 30, 2016 is $851,240, including interest accrued thereon of $1,240 and net of. unamortized debt discount of $847,313. During the three and nine months ended September 30, 2016 the Company amortized debt discount of $2,687 and $2,687, respectively.

https://www.sec.gov/Archives/edgar/data/1514946/000107878216003849/f10q093016_10q.htm