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Cardax Takes Important Step to Access Funds Under Equity Purchase Agreement
Cardax Takes Important Step to Access Funds Under Equity Purchase Agreement.
About this update from Cardax Inc
[{"type":"text","content":"\n \n Cardax, Inc. (“Cardax”) (OTCQB:CDXI) announced that it is incorporating \n its 3rd quarter financial results as an amendment into the \n S-1 registration statement previously filed with the SEC. The S-1 was \n filed as part of the process required to access funds under the \n previously reported Equity Purchase Agreement (“EPA”). The Company \n expects to be able to access these funds this quarter after the \n registration statement becomes effective.\n \n \n The EPA provides Cardax with the right, but not the obligation, to sell \n up to $5 million in stock to an affiliate of Southridge LLC \n (“Southridge”). In addition, Cardax has the ability to designate the \n amount, minimum pricing, and timing of each draw-down and expects to use \n this facility to finance its operating needs if the pricing for a \n draw-down is acceptable. The ownership of Cardax stock by Southridge is \n limited to 9.99% at any time, which would be 8,820,509 shares as of \n September 30, 2016 and corresponds to the number of shares subject to \n the registration statement. There are no trading volume requirements in \n connection with the draw-downs; however, the maximum amount of capital \n that can be effectively drawn-down at any given time will be dependent \n on the then current market pricing and beneficial ownership of Cardax \n stock by Southridge.\n \n \n “We are pleased to see the progress made on this useful financing tool,” \n said Cardax President and CEO, David G. Watumull. “This flexible, \n non-toxic financing—with the protection of a reasonable floor and less \n dilution than our 2016 private placements—delivers a prudent and \n workable platform for us as we focus on commercialization of ZanthoSyn \n and development of our second generation product, CDX-085.”\n \n \n About Cardax\n \n \n Cardax devotes substantially all of its efforts to developing and \n commercializing safe anti-inflammatory dietary supplements and drugs. \n Cardax is initially focusing on astaxanthin, which is a powerful and \n safe naturally occurring anti-inflammatory without the side effects of \n currently marketed anti-inflammatories. The safety and efficacy of \n Cardax's products have not been directly evaluated in clinical trials or \n confirmed by the FDA.\n \n \n About Southridg...