By Richard Sandle Posted on July 3, 2017 On our last review of Bemax Inc (OTCMKTS:BMXC) on February 9,2017, we found BMXC stock in the midst of a strong upward run that took it to a high of $.0551 on February 22nd.
BMXC stock has been on a steady downward trend since, trading down to a support level at $.005, giving back all the gains from the aforementioned run. It has leveled off a bit over the last couple of months, and is beginning to show signs that buyers are becoming more interested.
Bemax Inc. exports and distributes Disposable Baby Diapers from the U.S. to emerging markets in Africa and Europe. The Company also exports private label brands from manufacturers in Asia and distributes to other growing markets. Bemax focuses on an extensive and far-reaching global network among wholesalers, large discounting retailers and supermarkets as well as entry into the ecommerce arena to reach households directly through subscription orders. Bemax focuses on suppling our clients with disposable baby diapers from manufacturers in North America where quality is superior. The Company has been approved for uplisting from the Pink Sheets to the OTCQB market and began trading on the new platform on February 22, 2017.
On March 02, 2017, Bemax Inc announced that it entered into a multi-year private labeling agreement with North American Diaper Company (NADC), a leading U.S. manufacturer of value-priced, eco-friendly disposable baby diapers it sells throughout the U.S. and globally which are known for great value and optimum performance. The agreement will allow Bemax to purchase, sell, export, and distribute Mother’s Touch disposable diapers in private labeled format, and in Bemax packaging not trademarked by NADC. CEO of Bemax Inc., Taiwo Aimasiko said:
“We are very pleased with this alliance as it further strengthened the advantages of our private label brands, and complements our current distribution plan for the U.S. market. We look forward to fostering this relationship with NADC and believe that this agreement, along with others in the coming months and year, will fortify our position as a growing global distributor of disposable diaper products.”
In an effort to increase sales, Bemax Inc is taking steps to broaden its distribution network. Subsequent to the agreement with NADC, on May 25, 2017, the Company announced that it engaged Mr. Checkout Distributors to distribute Bemax private label brand of Mother’s Choice disposable diapers to its network of retail and convenience store outlets around the country. Mr. Checkout consist of a national group of independent distributors, and full-line grocery distributors representing products in over 60 major retailers throughout the country.
On June 27, 2017, the company announced that it received approval from Wal-Mart Stores, Inc. to supply its private label products to Wal-Mart.com customers. The company will supply its brands of private labelled Mother’s Touch disposable diapers to Wal-Mart customers through Wal-Mart.com. This very largescale opportunity demonstrate the Company’s continued commitment to expand its marketing outreach to major retail outlets. Bemax has commenced the onboarding process of its private label disposable diapers to Wal-Mart.com. The company will service Wal-Mart customers through two warehouse locations out of Atlanta and Bellingham. Bemax’s CEO, Taiwo Aimasiko commented:
“We are pleased to begin the supplier relationship with Wal-Mart, to bring our private label brands of disposable diapers to loyal Wal-Mart customers at the best possible price. This relationship will further support our growth in the disposable diaper market and we feel privileged to work with a world-class business who are market leaders in their field.”
On the financial front, the Company announced on June 14, 2017 that it has fully prepaid the outstanding principal and accrued interest of $46,000.00 which was due under the 18% Convertible Promissory Note dated December 28, 2016 with a maturity date of December 28, 2017. Consequently, any additional interest charges or dilution that may have resulted from any conversion will be avoided. The Company’s management continues to hold such actions as a top priority in order to maximize shareholders’ value.
The latest quarterly financial reports for the period ending February 28, 2017 does indicate that the Company is generating revenue, albeit at a small scale. However, it is operating at a Net Loss of $927,000. The balance sheet does show more asserts than liabilities, but most of the assets are listed as inventory, with no cash reported. The Company’s current market capitalization is $2.56million, on 301.64 million shares outstanding as of June 30, 2017.
Any time a company can make arrangements to sell its products via a mega-retailer like Walmart, the potential for good things to happen in the future increases significantly. Bemax Inc finds itself in this favorable circumstance. We will keep Bemax Inc on our radar and see how it progresses. We will be updating our subscribers as soon as we know more. For the latest updates on BMXC, sign up below!
