Business
Cardax Enters Into Equity Purchase Agreement for Financing of Up to $5 Million
Cardax Enters Into Equity Purchase Agreement for Financing of Up to $5 Million.
About this update from Cardax Inc
[{"type":"text","content":"\n \n Cardax, Inc. (“Cardax”) (OTCQB:CDXI) announced today that it has entered \n into an Equity Purchase Agreement (“EPA”) with an affiliate of \n Southridge LLC (“Southridge”), an institutional investor.\n \n \n The EPA provides Cardax with the right, but not the obligation, to sell \n stock to Southridge and the ability to designate the amount, minimum \n pricing, and timing of each capital draw-down, provided that the \n aggregate purchase amount available under the EPA is $5 million and \n ownership of Cardax stock by Southridge is limited to 9.99% at any time, \n which as of June 30, 2016, would equal 8,488,625 shares.\n \n \n There are no trading volume requirements in connection with the \n draw-downs; however, the maximum amount of capital that can be \n effectively drawn-down at any given time will be dependent on the then \n current market pricing and beneficial ownership of Cardax stock by \n Southridge.\n \n \n Before accessing capital through the EPA, Cardax must register the \n shares that may be sold to Southridge.\n \n \n “We are pleased to put together this useful financing vehicle,” said \n Cardax President and CEO, David G. Watumull. “Access to this amount of \n flexible financing—with modest dilution and the protection of a \n reasonable floor—provides an ideal platform for us as we focus on \n product development and commercialization.”\n \n \n “We are excited by the prospects of our investment in Cardax,” added \n Stephen M. Hicks, Founder and CEO of Southridge. “We believe the EPA \n provides a solid foundation for the execution of Cardax’s attractive \n business plan.”\n \n \n About Cardax\n \n \n Cardax devotes substantially all of its efforts to developing safe \n anti-inflammatory dietary supplements and drugs. Cardax is initially \n focusing on astaxanthin, which is a powerful and safe naturally \n occurring anti-inflammatory without the side effects of currently \n marketed anti-inflammatories. The safety and efficacy of Cardax's \n product candidates have not been directly evaluated in clinical trials \n or confirmed by the FDA.\n \n \n About Southridge LLC\n \n \n Since 1996, Southridge has made direct investment of over $1.8 billion \n into more than 250 growth companies globally, driven by its u...