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Non-Tech : Axonyx Inc. (NasdaqSC:AXYX)

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To: AD who wrote (6)7/15/2000 8:39:31 AM
From: tradermike_1999   of 10
 
Axonynx Inc.(AXYX)
Can a company with 7 employees that just moved from the
penny stock exchange on to the NASDAQ and lost $905k
this past year be worth over $200 million dollars? It can if it
puts out a flashy press release, CNBC mentions it, and
daytraders come out in droves and keep paying the ask.
But people who buy at these levels will end up like those
who bought ENC and JAKK when I put out my SELL and
SHORT recommendation a few days ago - holding the bag.
Here’s the story:
biz.yahoo.com
David Small who heads a medical laboratory at the
University of Melbourne, Australia, announced that he
found an enzyme that appears to be a diagnostic marker in
people who have Alzheimer’s disease and it may give a clue
to detecting the disease in patients. Axonyx is developing
inhibitors to these enzymes, hoping that they can be used to
treat Alzheimer’s patients.
Here’s some info from SEC quarterly report filings. Direct
quotes are in parenthesis:
Axonyx is funding this research with a 60,000 grant. Wow.
No wonder why it was on the penny exchange.

“On October 1, 1999 Axonyx Inc. signed a Sponsored Research Agreement with the University of
Melbourne (Australia). Under the Agreement, Axonyx commits to fund a research project at the
University of Melbourne to develop a diagnostic test for Alzheimer's Disease. Axonyx undertakes to fund this research for a three year period for
approximately $60,000 per year”

From the original filing to put the stock on the penny
exchange:

“The Company competes with many large pharmaceutical
companies that are developing drug compounds similar to
those being developed by the Company, especially in the
area of acetylcholinesterase inhibitors. Many large
pharmaceutical companies and smaller biotechnology
companies have well funded research departments
concentrating on therapeutic approaches to AD. “
With a 60,000 budget its going to blow out MERK,
AMGEN and big budget research labs and find a cure for
Alzheimer’s. Believe it and buy the stock. These 7
employees are going to have to work around the clock to
do it. When it filed to be listed on the penny exchange it
had 4 employees, so the addition of 3 more is a big step
forward.

Massive dilution
What made Creative Host such a compelling SELL and
SHORT recommendation was that insiders and pump and
dump outfits had registered to sell millions of shares on the
open market. Guess what. Yep, huge blocks of shares of
AXYX can now be sold on the open market. AXYX sold
156.5 warrants of 4,000 shares each that are exercisable at a
strike price $11 per share.:

“The Company completed its private equity financing in
Europe. During the period January 1, 2000 through March
31, 2000 the Company sold 156.5 units at $25,000 per unit.
Each unit consists of 4,000 shares of common stock and
2,000 warrants to purchase common stock at $11.00 per
share. In connection with the private placement the
Company issued 39,600 shares of common stock and
warrants to purchase 19,800 shares of common stock at
$11.00 per share as finder's fees. “
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