The last five days have seen the shareholders of Axim Biotechnologies Inc (OTCMKTS:AXIM) smiling all the way to the bank.
The company began the week with a share price of just above $3 and have ended it on a high note, closing at $5.96: a small decline from their previous high of a near $6.4.
Readers can view this price action in the chart below:
The doubling of their valuation has been driven by a number of factors, the key being their most recent announcement which has gotten the market alluding to the fact that the company is taking their geographical expansion narrative to heart.
As such, our interest in the company was startled and we decided to take a closer look at the company and what the current decision they have made will imply for the future of Axim. The following is a detailed well-researched report on the same.
History of Axim Biotechnologies
We have previously reviewed Axim with the most recent review being available here. However, for the sake of first-time readers, let us first have a look at the company’s history so as to get the gist of this transaction.
Axim Biotechnologies was founded back in 2010 and headquartered in New York, USA. They are a research and development-oriented company with an incline to the cannabis sector. Their developments include cannabis-based cosmetic, pharmaceutical and nutraceutical products. this research has led them to develop some of the leading products within this sector with their flagship products CanChew® and MedChew Rx currently in the clinical trial phase for the treatment of pain associated with multiple sclerosis.
So far, the company has created a name for itself and built a strong brand. Their management pride themselves on prioritizing customer well-being above all as this, according to them, is their driver towards meeting their strategic goals. This belief has led them to their success both within their home country and across the globe and been instrumental to their previous success. It is expected that they will be riding on the same beliefs to get them to the next phase of their life cycle.
The Proprietary Technology
Back in February, one of the largest traded cannabis companies, Medical Marijuana Company, invested significantly in AXIM. This investment was seen as one meant to drive the research phase – a heavily capital-intensive process – of Axim Biotechnologies to the next level and ensure that their current developments came to fruition.
This they did.
Soon after this investment, there was a breakthrough in the research phase. Axim Biotechnologies announced that they had finally secured a way of executing the first ever current good manufacturing practices methodology. Through this, the firm was able to extract and microencapsulate cannabinoid molecules which would enable their delivery through a variety of pharmaceutical formats.
This breakthrough put Axim on the medical map as the entity which pioneered one of the most efficient encapsulation methods in the world. This method would ensure that cannabinoids would be protected from oxidation and degradation, ensuring their preservation and making this an extremely effective method as compared to currently used methods. Furthermore, with its trial seeking to sustain 99% of the purity of the drug, its implementation will see the quality of cannabinoid and its products rise greatly all to the benefit of the consumers.
Medical Marijuana hailed Axim as being one of the greatest investments they had made with their CEO, Dr. Stuart Titus adding further that:
“We hope that this new extraction process will expand the pharmaceutical cannabinoid market and broaden the potential areas of application.”
Thus far, the process is still being evaluated, however, with Axim already being at its current phase, the company has a lot going on for itself.
The Venture into Korea
We previously mentioned that Axim has two proprietary drugs: CanChew® and MedChew Rx. On April 3rd (3 days ago), the company entered into an agreement which would see the distribution of their drugs across the Korean market.
The agreement which is between them and one of Korea’s leading specialty pharmaceutical entity would see the entity work with the South Korean Ministry of Food and Drug Safety to ensure that the products from Axim are registered with the relevant authorities. Furthermore, it will monitor the regulatory environment so to ensure Axim conforms with the current standards akin to the specific market. Once these conditions are met, Axim will have access to the over 50 million people in South Korea who will form a large pool for the company’s drugs.
This move has come to prove to the market that Axim is serious about implementing their growth phase as echoed by their CEO, George E. Anastassov who said:
“Preparation for international market expansion is vital at this stage of our company’s growth… AXIM will be ready to capture as much market share as possible for treatments of various indications.”
The company seems to have forged a great path for themselves, one which they seem to be following quite well. Their international expansion is an important stage for them and, going forward, will open up a greater populace and more demand for their product across the globe.
Courtesy of this, their revenues are expected to grow significantly going forward and this is expected to be the reason behind their price surge. This speaks to the market’s expectations from this move as implied by their valuation. As such, we also remain optimistic about a sustained price increment for the shares of AXIM going into the future.
AXIM is on its growth path with their trajectory leading them right to the top. Their internationalization strategy seems to be working well for them as are the deals they have chosen to close. A lot is expected from AXIM and key among this is a persistent share price increase.
Disclosure: We have no position in AXIM and have not been compensated for this article.