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Cardax Pharmaceuticals, a privately held Hawaii-based biotech firm headed by David Watumull, said Friday it raised $11 million in equity and is now publicly traded, after its "reverse merger" with Houston-based Koffee Korner Inc.
In connection with the closing of the merger, Koffee Korner changed its name to Cardax Inc. and will continue to have its shares of common stock traded in the over-the-counter market reserved for small companies. Cardax has applied to trade under the ticker symbol CDXI, but shares will begin trading Monday under Koffee Korner’s existing symbol, KOFF, for about a week until the change is approved, Watumull said.
Watumull, Cardax president and CEO, said the reverse merger is unlike an initial public offering and that there is no set price where trading will begin.
"We have some idea on the kind of valuation we think the market will accept, but the market will make its own decision on that," he said.
Watumull said in November that publicly listing his company will allow Cardax to raise money and expand the production and marketing of its pharmaceutical and nutraceutical products.
Cardax said it raised about $11 million of equity in private placements at or prior to the merger, comprising approximately $4 million Friday, $2 million in January and $5 million in 2013. The company announced the completion of the deal after the market closed.
"This transaction provides our talented scientists and seasoned management team with an excellent platform to continue our research and product development," Watumull said. "We are excited about our future."
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