POSTED: 8:08 a.m. HST, Nov 29, 2013
LAST UPDATED: 9:42 a.m. HST, Nov 29, 2013
Cardax Pharmaceuticals, a privately held Manoa-based life sciences firm, announced today that it will become a publicly traded company.
The move will allow Cardax to raise money and expand the production and marketing of its pharmaceutical and nutraceutical products.
Cardax will undertake a reverse merger with a mainland shell company that is already publicly traded, according to a news release from Cardax. Shares of the mainland company, Koffee Korner Inc., are traded in the over-the-counter market. Koffee Korner, a coffee roasting company, is based in Houston and incorporated in Delaware.
Under terms of the agreement Koffee Korner will acquire Cardax for consideration of shares and warrants to purchase shares of Koffee Korner that will be issued to Cardax and its investors. Once Cardax acquires a majority of the issued and outstanding shares Koffee Korner will change its name to Cardax Inc. Cardax will continue to trade in the over-the-counter market and the ticker symbol will be changed to reflect the Cardax name.
The procedure being used by Cardax is known as an alternative public offering. It is an easier way of taking a company public than with an initial public offering because the shell company already meets shareholder requirements of certain exchanges.
Most of work done by Cardax is in developing nutraceutical and pharmaceutical products that provide the anti-inflammatory benefits of steroids, but with fewer side effects. Cardax' products are used in the treatment of osteoarthritis, rheumatoid arthritis, dyslipidemia, metabolic disease, diabetes, cardiovascular disease, hepatitis, cognitive decline, macular degeneration, and prostate disease, according to the news release.