Replies to post #514 on Axim Biotechnologies Inc (AXIM)

[stock_clerk]

Zyberba never even HAD a clinical trial as far as I could find, of course it'll be a failure if there never even was a trial. Good move for shorts tho- bank off that play

[Det_Robert_Thorne]

The problem is that it's $4M convertible debt

The problem with that $4M in financing is that it is in the form of convertible debt, and since the note was signed on June 12, 2017, then starting on or about Dec 12, 2017, the note will be convertible at the rate of $350K/month, which means a year of dilution with the following terms:

There are no payments of principal or interest due under the Note for the first six months following its issuance. Commencing on the date that is six (6) months from the issuance of the Note, Investor may redeem a portion of the Note in monthly amounts not to exceed $350,000 in any calendar month. Provided the Company has not suffered an “Event of Default” and is in compliance with certain “Equity Conditions” (unless waived by Investor in either case), the Company, in its sole discretion, may make redemption payments in cash or by the issuance of common stock. If the Company chooses to make redemption payment in cash, the cash payment is subject to a 25% premium. If the Company chooses to make the redemption payment in stock, the number of shares issuable shall be 70% (reduced to 65% if the conversion shares are not DTC eligible for a period of at least 5 days) multiplied by the average of the three (3) lowest closing bid prices in the previous twenty (20) trading days. Payments may be made in a combination of cash and stock.

https://www.sec.gov/Archives/edgar/data/1514946/000107878217000908/f8ka062217_8kz.htm

This will likely put severe pressure on the stock.