Readers may recall the company we called out a decade ago for its aggressive crowdfunding campaign to raise $15 million in 2016. Med-X was then a cannabis-focused company, and it was trying to raise the money for 21% of its ownership through a Regulation A+ offering.
10 years later, the same management team is trying to raise money ahead of its potential NASDAQ listing. The company’s SEC filings go back to 2014. and the most recent filing, a Form 1-U, disclosed a $400K payment to GEM Global Yield in New York City with mutual releases related to a 2021 investment agreement that GEM made into Med-X that gave them warrants that ultimately expired. GEM is Global Emerging Markets, an alternative investment group that funds management buyouts and private investments in public companies as well as venture investments.
In 2018, we wrote about cannabis companies aggressively soliciting investment, and this article warned about Med-X again. The Med-X crowdfunding campaign had been suspended in late 2016.
Med-X has a website, and the news on its I.R. page goes back to early 2016. It’s pretty easy to see that the company initially was working on just one product, Nature-Cide, and moving the pesticide into the cannabis industry. As we pointed out in that crowdfunding article, the same management team at Med-X failed at publicly-traded Pacific Shore Holdings (PSHR), a company that had a license from Med-X CEO Matthew Mills. Well, Med-X no longer talks about cannabis at all. The word “cannabis” does not appear once in its recently provided investor deck.
The 1-K filed in April for 2025 showed that the company had revenue of $1.99 million with a gross margin of 18.6%. The company, though, spent $7.73 million in operating expenses including $5.99 million in G&A and $1.29 million in sales and marketing. The operating loss of $6.91 million did improve from 2024, but it was massive. The company had 31% of its revenue in 2025 from two companies, Target Specialty Products and Veseris, and 80% of its supplies were provided by two companies, Berje and Actions & Company. The company sold 285K shares for $532K during the year through a Reg CF offering, sold 937K shares at $2.00 in a private placement and 1.2 million shares at $3 per share in another private placement, and it sold 384K shares at $4.00 per share through its Reg A+ program. With some additional sales in 2026 through the Reg A+ offering and another private placement at $3 and the issuance of shares in exchange for a liability, there are now 25.2 million shares outstanding. Insiders own 4.56 million shares, and CEO Mills holds 10K Series A Preferred shares that give him voting control.
At year-end, the company had equity of just $18,627. Total liabilities were $3.63 million. Cash was reported at $270K, but current liabilities exceeded current assets by $411K. The largest current asset was inventory of $960K, up 56% from the end of 2024. Operating cash flow for 2025 was a stunning -$5.1 million, which was a higher use of cash than in 2024 despite sales increasing.
Most investors don’t read SEC filings. They tend to perhaps read press releases as well as articles that are written about companies. A small company like Med-X, which does own a media company, typically is not a popular article subject, but two articles were published by Stockhouse recently:
- Med-X targets global pest control market with Nature-Cide
- Med-X, Inc.: Building a natural alternative in a chemical world
Stockhouse, based in Canada, has long promoted cannabis stocks, but it is a broad organization. The Stockhouse website has a legal disclaimer page that discusses sponsored content, but the article on its site does not say that it is sponsored. The first article, published on September 1st, was “featured news” that really wasn’t news. Stockhouse is owned by ADVFN Group, which owns InvestorsHub. Stockhouse has sent out emails that link to their articles on Whatcounts.com.
It’s hard to believe that the same management team that has failed to make this business a success after so many years is trying to sell stock. The symbol that the company discusses is MXRX, but there is no near-term pricing projected. The current 506(c) offering of stock has a $90K minimum investment and was announced a year ago in a Form D filing. It is being handled by Marco Polo Securities in NYC for as much as $10.35 million. Med-X and its aggressive promotion by Stockhouse raises an important question for potential investors: Why bother? Med-X has low revenue, big operating losses and no big plan. The CEO, who has a penny stock history, discusses how the company needs to get its name out there, but it is already spending a lot of money on sales and marketing. At the current $4 offering price, the company is valued at over $100 million or more than 50X sales in 2025. Investors should be cautious.
