Bemax Inc (OTCMKTS:BMXC) is a disposable diaper company that has really been quiet for most of 2018, but over the last few days has jumped up more than 65%. The driver for BMXC is interesting on two levels. The first is that BMXC was presented with a large buyout offer and the other is that the company is expanding its line of diapers, which are currently sold at Wal-Mart through the “Mother’s Touch” line.
Right now, BMXC is double penny and the bigger driver here is certainly the buyout offer on the table. This news has sent traders scrambling to buy low on what could be a significant boost, if they in fact agree to the offer. However, this news is very confusing and investor relations would not comment on the released press of the buyout. According to the company, they are sitting on a $5.5M offer from BBG Hygiene and that they are strongly considering the offer on the table.
Bemax Inc (OTCMKTS:BMXC) is a United States company actively pursuing opportunities in the rapidly growing global Consumer Staples and Household Products Industries. BMXC markets and distributes household products of companies positioned to make a significant impact within the consumer staples market The current population fertility rate increased presents an opportunity for Bemax Inc. to enter and penetrate the disposable baby diaper market.
BMXC is poised to take advantage of this growth rate and minimal local competition, with a dedicated and experienced staff, excellent order procurement, and effective management and marketing. The initial intention will be to distribute disposable baby diaper to wholesalers, and local market retailers throughout South Africa. According to the company, we realize the fact that for us to prosper in this relatively untapped market, there is need to be flexible and responsive, to delight our customers by providing them with what they want, when they want it and in the exact quantity. Our primary goal will be to establish and strengthen our existence in the market, which will be bestowed by the business environment in which we function. Ultimately the attractiveness of our venture lies with the fact that customers will choose our products above those of competitors because of the relatively lower prices as well as their high quality. Hence BMXC’s ongoing initiatives will be to drive sales, market share and productivity so as to provide additional impetus towards attainment of the corporate goals and objectives.
According to the company, “we intend to export Disposable Baby Diapers from North America to distributors in England. Disposable Baby Diapers have become a widely used alternative disposable material for parents of babies and children not toilet trained. Disposable Baby Diapers is a kind of underwear that allows a baby/child to defecate or urinate in a discreet manner. Diapers are made of synthetic disposable materials. Disposable diapers contain absorbent chemicals and are thrown away after use. Disposable diapers are primarily worn by children who are not yet potty trained or experience bedwetting. Disposable Baby Diapers are constructed in three layers, an inner layer that sits against a baby’s skin is designed to be soft, stay relatively dry, and wick away moisture into the core. The absorbent core is designed to pull moisture in and trap it to keep wetness away from the baby to avoid rashes. The outer layer is waterproof to prevent leaks.”
Find out when $BMXC reaches critical levels. Subscribe to FinanceRegistrar.com Right Now by entering your Email in the box below.
All that said, the real news on the table is the private label launch. The new brand will also launch on Target.com as well. ”We continue to receive encouraging interest from customers on our upcoming private label brands; we expect strong customer demand at the launch of the new brands. Upon launch, the new private label brands will further position the Company to meet estimated sales projections,” said Taiwo Aimasiko, CEO of BMXC.
Bemax Inc (OTCMKTS:BMXC) has a market cap of $1.04M and a float of 403.69M. BMXC is riding the wave of speculation on this buyout, but even if they do not take it the company might see a jump in revenues with a new product line hitting some big box retailers. We will be keeping our eye on them and following up as more information comes out. Sign-up for continuing coverage on shares of $BMXC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $BMXC, either long or short, and we have not been compensated for this article.