Yesterday, Axim Biotechnologies (AXIM) released its second quarter financial and operating results for the period that ended on June 30th and the biotech firm provided an overview of its recent highlights.
Before we break into these results, we want to state that we are cautious with Axim and believe there are much better biotech opportunities available. If we were to take a look at the shares, we would have a short-term swing trade approach because Axim Biotech is not a long-term opportunity.
Not Buying into the Hype
Axim has frequently presented itself as one of the best cannabis biotech opportunities, however, this could not be further from the truth.
Earlier this year, AXIM was reported to have the broadest pipeline in the cannabis industry, which is a very misleading statement. The article stated, “AXIM Biotech has developed one of the industry’s most diverse clinical pipelines with nine clinical programs in development (several have been recently added).”
Axim Doesn’t Have the Resources to Accomplish its Goals
When investors think of the leading biotech company levered to the cannabis industry, the first name that comes to mind is GW Pharmaceutical (GWPH). The company has by far, the largest and most advanced pipeline of products in advanced stages of FDA testing. GW also has the capital to support the costs of clinical trials ($369.5 million in cash as of June 30th).
Axim on the other hand, does not have the capital it needs to fund its initiatives and clinical trials. The company admitted this in its earnings report and said that it does not have the resources to accomplish its objectives during the next twelve months. The financial report stated that these conditions raise substantial doubt about Axim’s ability to continue as a going concern.
When it comes to Axim though, investors clearly believe the risk is too significant or the company’s balance sheet would be flush with cash.
credit:420intel.com
