Cardax, Inc. announced a private placement of 400,000 convertible preferred shares at an issue price of $25 per share for gross proceeds of $10,000,000 on November 18, 2020. The shares to be issued can be redeemed after October 15, 2023. The shares bear 8% per annum dividend, payable if redeemed or upon liquidation.

The preference shares can be converted into common shares at $5 per common share, from and after October 15, 2022. The securities to be issued will be issued in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended, pursuant to Rule 506(c) of Regulation D