Local development-stage pharmaceutical company Cardax Inc. plans to seek up to $15 million from investors to continue its work focused on inflammation ailments.
Honolulu-based Cardax filed paperwork Wednesday with the U.S. Securities and Exchange Commission outlining the plan to sell more stock along with rights to buy stock at prices to be determined later.
The company also reported Wednesday in a separate filing that its revenue during the three months ended June 30 plummeted to $45,391 from $272,049 in the same period last year.
Cardax has been selling its ZanthoSyn dietary supplement primarily through wholesale and online channels, since 2016.
Much of ZanthoSyn’s sales has been through General Nutrition Corp. stores. After September, however, Cardax said an exclusive retail outlet contract with GNC won’t be extended despite what Cardax described as strong wholesale business with GNC since June.
The change with GNC will allow Cardax to expand distribution of ZanthoSyn, which hasn’t been evaluated for safety and efficacy in clinical trials, to other retailers. The company also said it plans to expand efforts to sell directly to consumers over the internet.
While Cardax has put much effort into this dietary supplement, the company is primarily focused on developing pharmaceuticals for chronic diseases driven by inflammation.
This work consumes much investment with the goal of future sales. From Cardax’s inception in March 2010 through June 30, the company has accumulated a deficit of $64.2 million. That’s up from $61.9 million at the end of last year.
The second-quarter loss for Cardax totaled $1.1 million, which was the same as its year-ago loss.
Between April and Wednesday, Cardax said it raised $1.7 million to sustain operations. The company said its planned stock offering up to $15 million will help with clinical testing work.
Shares of Cardax stock closed Wednesday at 10 cents before the company’s announcements. The closing price was unchanged from Friday when shares last traded.
Second-quarter loss
$1.1 million
Year-earlier loss
$1.1 million
