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Apparently, Axiotron has not submitted any financial reports for the fiscal year ending Sept. 30, 2009 or for the quarter ending in December 31, 2009. That is a big deal for a publicly traded company.
Now, according to Fox Business, Axiotron is attempting to pay its outstanding debts by giving its creditors a substantial chunk of the company, and trading of its stock has been halted. In its filing with Canadian stock regulators, it scheduled a stockholder's meeting in June to consider a proposal to give 35% of the company to secured creditors and 7.8% to unsecured creditors in exchange for all outstanding debt.
While clearing what appears to be about $3.4 million in debt from its books might seem to be a great thing, consider this excerpt from its filing:
Between November 30th, 2009 and April 29th, 2010, the Corporation successfully persuaded certain unsecured creditors to reduce the Corporation’s debt by accepting US$0.16 per every US$1.00 owed, reducing the Company’s trade payables to these unsecured creditors from approximately US$1.2 million to US$186,617.05.
On April 29th, 2010, the Corporation reached a debt-for-share settlement agreement with these unsecured creditors to accept 5,183,807 Common Shares in the Corporation valued at US$0.036 per Common Share in full settlement of the US$186,617.05 debt (the “Unsecured Debt Settlement”). ...
So, after spending six months getting its unsecured debt reduced by 84%, evidently they still couldn't pay it and opted to exchange stock for debt. This is not a healthy company.
Whether or not they can convince stockholders that this is good idea, none of this bodes well for the upcoming Modbook Pro. With all this going on, do you suppose Axiotron has been able to focus on all the details of a new product release? Do you think they have the cash to cover the Modbook Pro's initial production run? (Certainly, no one is going to lend them the money.) Indeed, they don't know they going to have a company until after the shareholder meeting.
Still trying To be hopeful,