Cardax, Inc. announced that it expects to receive $10 million in funding from US Capital Global Investment Management, LLC
January 11, 2021
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Cardax, Inc. (OTCPK:CDXI) announced a private placement of up to 400,000 series A preferred shares at an issue price of $25 per share for gross proceeds of up to $10,000,000 on January 11, 2021. The company has entered into a series A preferred stock purchase agreement. The transaction involves participation from US Capital Global Cardax Preferred LLC, a fund managed by US Capital Global Investment Management, LLC. The shares have face value of $0.001 per share. The shares to be issued can be redeemed after October 15, 2023. The shares bear 8% per annum dividend. The preference shares can be converted into common shares at $5 per common share, from and after October 15, 2022. The transaction may have more than one closing. All securities issued in the transaction are restricted in nature. 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.
On the same date, the company has received its first tranche. The company has issued 2,000 preferred shares for gross proceeds of $50,000.
Cardax, Inc. is a consumer health company focused on marketing ZanthoSyn, an astaxanthin dietary supplement for inflammatory health. It seeks to monetize CDX-101, the Company's pre-clinical pharmaceutical candidate for cardiovascular inflammation and dyslipidemia, and CDX-301, the Company's pre-clinical pharmaceutical candidate for macular degeneration. CDX-101 is a proprietary astaxanthin prodrug that cleaves following oral administration and delivers astaxanthin to the bloodstream. Astaxanthin is a naturally occurring molecule with safe anti-inflammatory activity that supports cardiovascular health, metabolic health, liver health, joint health, and longevity. It intends to develop zeaxanthin pharmaceutical candidate, CDX-301, for macular degeneration. Zeaxanthin accumulates in the human eye through uptake by a retinal receptor, providing protection against blue light, oxidative damage, and related inflammation that occurs in macular degeneration.