Cardax, Inc. (OTCPK:CDXI) announced that it has entered into definitive agreement wherein is it issued senior convertible promissory note with principal amount of $815,217.39 at an discount of $65,219.39 for gross proceeds of $750,000 on July 19, 2019. The transaction included participation from existing investor of the company. The rate of interest on notes is 8% per annum and is payable monthly in arrears. The notes will mature on June 30, 2020. The notes are convertible into common stock of the company of par value of $0.001 per share at conversion price of $0.12 per share for gross proceeds of $5,000,000. In the event of default, the conversion price will be reduced to 75% of the volume weighted average price per share of the common stock for the 20 trading days prior to the conversion date. The company may prepay in cash all or any of the obligations under the note upon five trading days notice subject to the investor’s right to convert the note prior to such repayment. The agreement also grant the investor the right to participate in future issuances of any equity or debt securities upon the same terms offered to all other offerees in such transaction after July 19, 2019. The company also issued warrants. Each warrants can be exercised to purchase 1,500,000 shares of the company at an exercisable price of $0.12 per share for a period of July 19, 2024. The company shall pay interest in cash to the investor in monthly in arrears on or prior to the 10th calendar day of each month and on each conversion date or on the maturity date. In the event of default, the interest rate shall increase to 12% per annum. The company shall reimburse the investor for its for its legal fees and expenses in an amount up to $5,000.