To set the stage:
PXYN merged into a dirty otc shell. A clean OTC shell typically costs btw $2-300k. However, PXYN not only assumed millions in liabilities for this shell but also gave up 76% equity in its company. Simply, this was a deal made to provide a public vehicle for the previous shell owners that were stuck in that deal, to liquidate shares which cost them nothing.
Enter PXYN, Shebanow and the penny stock crowd to the rescue.
Since the convertible preferred recruited PXYN into their shell, Preferred Shares have been converted into PXYN common and dumped relentlessly into the market. As evidence to this, shares have exploded from appx 130M to this past June 2015s count of 625M!! Also, this massive dilution brought no benefit, no cash, no acquisition, NOTHING to PXYN.
In addition, PXYNs share price has coincidentally collapsed from .175 to the current .01
PXYNs business is a totally flawed business model. They are one of 10's of thousands CPC companies with nothing proprietary. The value in the compound pain cream industry has always been the marketing companies which hustle up prescriptions. The cream mfg's are a dime a dozen. These marketing companies make lopsided deals in their favor with the mfr's. Witness the deal TPS made with PXYN, cleaning them out of every red cent available. To add to the woes of companies like PXYN, regulators, legislators & benefit managers have slashed dramatically reimbursements for the products PXYN mfr's, which should really be reflected in this Q3... Check out PXYNs Q2 report, they warn of LOWER REVENUES in the future.
PXYN reported $5m cash in Q2. However, they also reported $20M in current liabilities and an EXPANDING WORKING CAPITAL DEFICIT of $6.5M... They cannot afford to pay their bills.
Also, PXYN entered into a $120M flat fee agreement with its new marketing partner NHS. PXYN is obligated to pay this fee over the next 12 months (they were unable due to lack of cash to pay it last quarter).. This is a bogus agreement anyway imo... witness, NHS isnt even a marketing company..check their website and check PXYNs PR identifying them strictly as a BILLING COMPANY! Further, their largest sales month for PXYN was $4m... against an avg $10M monthly fee due to NHS? LAUGHABLE!!
Note that PXYNs former marketing partner is suing PXYN for 100's of millions alleging fraud, theft, etc...23 counts
It should also be noted PXYN amended the NHS agreement, a material event, and withheld that info from the public for 45 days, burying it in a 10Q.. Additionally, PXYN failed to disclose the multi-hundred million dollar lawsuit filed against it by TPS until another 45 DAYS past and buried that in a 10Q
Get the picture.
The CEO of PXYN, Ed Kurtz (a prescription compound pain cream company) comes from Adler Landscaping with a community college education, which info is conveniently left off his resume with the SEC and their website.. Check him out on linkedin and see the truth
PXYN is nothing more than a stock selling scheme. Read the TPS lawsuit and one other lawsuit alleging a Preferred holder is the real boss at PXYN!!
The over hang of shares in PXYN will continue for all of 2016, if PXYN remains in business. Even ardent PXYN supporters now acknowledge the CEO is in the back pocket of the preferred shareholders and wont lift a finger on behalf of the common holders.
I can go on for a while but this should give you a good understanding of my opinion. Ive been warning investors here for one year. Those that havent listened are losing their shirts
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