Bemax Inc (OTC:BMXC) Inks an Agreement with CIM Securities

As another trading week commenced on Monday, there were a number of listed companies that came into focus, and one of those was Bemax Inc. (OTC:BMXC). The company trades under the symbol BMXC on the OTC Pink Sheets.

Yesterday, it was announced that it had entered into an engagement agreement with the firm CIM Securities LLC for the purpose of raising as much as $3,000,000 in three-year convertible promissory notes. The notes would carry an annual accrued interest rate open to accredited investors of 8%. There are three different ways in which the notes could be converted, and it may be a good move to take a look into those.

A hard ceiling market capitalization for $18,000,000 fully diluted common shares is one option, while another would be a hard floor market capitalization for $6,000,000 fully diluted outstanding common shares. The last option would be a 30% discount from the fully diluted market capitalization closing bid price if the conversion price falls between the hard floor and the hard ceiling.

The market capitalization would be based on the fully diluted number of outstanding shares stated in the reports for the prior quarters. As a company, Bemax is involved in the export as well as distribution of private label women’s hygienic sanitary products and household disposable diapers across North America as well as to emerging markets globally.

In the news release yesterday, the company further noted that the offering had been made on a best-efforts basis through CIM Securities. It was further revealed that CIM was a member broker-dealer of FINRA. It functions in the form of an independent investment bank that works primarily with small- and micro-cap companies. It is also known for offering services for facilitating private placement transactions in which shares in a specific company are bought straight from the issuers.