Bemax Inc (BMXC)

[Luckybstrd]

The reason she had to take on more debt is because she has to buy the diapers before she can ship.
She realized that by not having the funds available was hurting her business.

Please refer to the Quarterly Report Issued on 04-21-17 Page 17
"The Company had $24,960 in sales for the three months ended February 28, 2017 compared to
$246,119 for period ended February 29, 2016. This reduction is due to inability to secure viable
and less dilutive financing to effectively finance purchase orders."

Lets look at the agreement with Bethel Imports:
The Supplier Agreement Issued 11-16-2015
"On November 13, 2015, Bemax Inc. (the “Company”) entered into an exclusive supplier agreement (the “Agreement) with Bethel Imports Marketing Limited (the “Customer”), whereby the Customer shall purchase exclusively from Company"
"Customer shall issue purchase order to the Company specifying the type and amount of Disposable Baby Diaper, and Services to be purchased from the Company"

And the Purchase Order Press Release "Marketwired - January 31, 2017"
"This new purchase order resulting from the long-term supplier agreement filed on November 16, 2015 is the first tranche of purchase order in 2017, with Bethel Imports paying for each consignment before shipment by Bemax"

In order for her to get Paid she has to take on some dept.
This is also why she is looking for creditors as strategic partners.
"From the company's perspective strategic partners are creditors that are positioned, ready and willing to provide ongoing funding to the meet the company mid to long term marketing and expansion objectives."

The creditors are willing to work with her because she has a track record of paying the debt early.

As always these are my opinions.

LB