EX-3 7 ex37certofdesignserc.htm EX 3.7 CERTIFICATE OF DESIGNATION-SERIES C PREFERRED STOCK Ex 3.7 Certificate of Designation-Series C Preferred Stock

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PARALLAX HEALTH SCIENCES, INC.

CERTIFICATE OF VALIDATION

March 11, 2019

This  Certificate  of  Validation  (this  “Certificate”)  is  filed  on  behalf  of  Parallax  Health

Science,  Inc.,  a  Nevada  corporation  (the  “Corporation”),  pursuant  to  Section  78.0296  of  the

Nevada  Revised  Statutes  (“NRS”),  which  provides  that,  if  a  corporate  act  ratified  or  validated

pursuant to such section would have required any filing with the Secretary of State pursuant to the

provisions  of  such  title,  or  if  such  ratification  or  validation  would  cause  any  such  filing  to  be

inaccurate  or  incomplete  in  any  material  respect,  the  Corporation  shall  make,  amend  or  correct

each  such  filing  in  accordance  with  Section  78.0296  of  the  NRS,  and  that  any  such  filing,

amendment  or  correction  must  be  accompanied  by  a  certificate  of  validation  indicating  that  the

filing, amendment or correction is being made in connection with a ratification or validation of a

corporate act in accordance with Section 78.0296 of the NRS and specifying the effective date and

time of the filing, amendment or correction, which may be before the date and time of filing.

I, Paul Arena, the Chief Executive Officer of  the Corporation, hereby certify on behalf of

the Corporation as follows:

l.

This Certificate shall accompany, and is to be appended to, that certain Certificate

of Designation (the “Certificate of Designation”), filed on February 20, 2019, Document Number:

20190073702-31,  with  the  Nevada  Secretary  of  State  in  accordance  with  Section  78.0296  of  the

NRS.

2.

The  Certificate  is  being  filed  in  connection  with  a  ratification  or  validation  of  a

corporate act in accordance with Section 78.0296 of the NRS.

3.

The effective date and time of filing of the Certificate of Designation is August 10,

2018 (Pacific Time).

[SIGNATURE PAGE FOLLOWS]



PARALLAX HEALTH SCIENCES, INC.

IN  WITNESS  WHEREOF,  the  undersigned  has  executed this Certificate on behalf of the

Corporation as of the date set forth above.

Parallax Health Science, Inc.,

a Nevada corporation

By:

/s/ Paul Arena__________________

Name: Paul Arena

Title:   Chief Executive Officer

The undersigned hereby certifies that the person named above is the duly elected, qualified

and  acting  Chief  Executive  Officer  of  the  Corporation,  and  that  the  signature  appearing  above  is

his true and genuine signature.

By:

/s/ Calli R. Bucci_______________

Name:  Calli R. Bucci

Title:    Corporate Secretary



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CERTIFICATE OF DESIGNATION

OF RIGHTS, PREFERENCES AND PRIVILEGES OF

SERIES C PREFERRED STOCK

OF

PARALLAX HEALTH SCIENCES, INC.

Pursuant to Sections 78.195 of the Nevada Revised Statues (the “NRS”), as Amended, Parallax Health

Sciences, Inc., a Company organized and existing under laws of the State of Nevada (the “Company”), does

hereby submit the following:

WHEREAS,   Company   has   500,000,000   shares   of   common   stock,   par   value   $.0.001   per   share

(“Common  Stock”),  and  10,000,000  shares  of  preferred  stock,  par  value  0.001  (the  “Preferred  Stock”),

outstanding, and the Company’s Board of Directors  (the “Board”)  is authorized to issue and establish one

or more series of the Preferred Stock and to fix the designation, rights, preferences, powers, restrictions and

limitations thereof;

WHEREAS,  850,000  shares  of  Series  A  and  40,000  shares  of  Series  B  Preferred  Stock  have  been

designated,  and  823,691  shares  of  Series  A  and  40,000  shares  Series  B  Preferred  Stock  have  heretofore

been issued; and

WHEREAS,  the  Board  believes  it  to  be  in  the  best  interest  of  the  Company  and  its  shareholders  to

designate  a  new  class  of  Series  C  Preferred  Stock,  with  the  preferences  and  relative  and  other  rights,  and

the qualifications, limitations or restrictions as defined below.

NOW  THEREFORE  BE  IT  RESOLVED,  that  pursuant  to  the  authority  vested  in  the  Board  by  the

Company's  Articles  of  Incorporation,  as  amended  (the  “Articles”),  a  series  of  preferred  stock  of  the

Company  be, and it hereby  is,  created  out  of the  authorized  but  unissued  shares  of  the  capital stock  of the

Company,  of  which  the  preferences  and  relative  and  other  rights,  and  the  qualifications,  limitations  or

restrictions thereof, shall be as follows:

1)    Designation.  Six Hundred Thousand (600,000) shares of the authorized and unissued Preferred Stock

of the Company are hereby designated “Series C Preferred Stock”  (the "Series "C" Preferred Stock").

2)    Dividends:  The  Series  C  Preferred  Stock  shall  be  entitled  to  receive  cumulative,  non-compounding,

dividends  at  an  annual  rate  of  eight  percent  (8%),  payable  semi-annually,  which  at  the  option  of  the

Company  may  be  “payment  in  kind”  (“PIK”)  or  cash  (provided  that  if  the  Company  is  not  legally

permitted to distribute cash dividends it shall nevertheless pay dividends to holders by PIK to the extent

legally  permissible.   Dividends  will  cease  upon  conversion  or  redemption  of  the  Series  C  Preferred

Stock into PRLX’s Common Stock.

3)    Conversion Rights.

a)    Elective  Conversion:   Each  Share  of  Series  C  Preferred  Stock  shall  be  convertible  at  any  time  in

whole or in part, including accrued dividends, at election of the holder, at the then Conversion Ratio

(the “Conversion Ratio”), to be determined as the lower of:”

i)     $0.12 per share, or 41.667 of Common Stock, if converted within three-years from the date of

issuance; or

ii)   a 33% discount on the price per share of the Company’s capital stock offered in:

Parallax Health Sciences, Inc.

Series C Preferred Stock

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Designation



(1)  the  next  primary  offering  immediately  following  the  issuance  of  the  Series  C  Preferred

Stock; or

(2)  any new equity linked financing within the next 24 months of the closing date of the Series

C Preferred Stock offering.

b)    Forced Conversion. The Company may, at its option, force conversion of any portion of the Series

C  Convertible  Preferred  Stock  if,  at  any  time,  the  market’s  closing  price  of  the Common  Stock  is

over three-times (300%) per share the Prevailing Conversion Price for a 20 trading-day period, and

the PRLX stock is trading a minimum of over 60,000 shares per day average trading volume

c)    Conversion  Ratio.  The  Conversion  Ratio  of  the  Series  C  Preferred  Stock  will  be  subject  to

proportional  adjustment  for  stock  splits,  stock  dividends,  and  the  like  and  to  adjustment  on  a

narrow-based weighted average basis for issuances at a purchase price less than the then-effective

Conversion Ratio, subject to the following carve outs:

i)     the issuance of Common Stock to employees, consultants, officers or directors of the Company

pursuant  to  stock  purchase  or  stock  option  plans  or  agreements  approved  by  the  Company’s

Board.

ii)   the issuance of securities in connection with acquisition transactions approved by the Board.

iii)  the  issuance  of  securities  to  financial  institutions  or  lessors  in  connection  with  commercial

credit arrangements, equipment financings or similar transactions approved by the Board.

iv)  the issuance of securities in a private placement or public offering.

d)    Effect of Conversion. All Shares of Series C Preferred Stock converted as provided herein shall no

longer be deemed issued and outstanding as of the effective time of the applicable conversion, and

all rights with respect to such Shares shall immediately cease and terminate as of such time, other

than the right of the holder to receive shares of Common Stock in exchange therefor.

4)    Voting Rights. Each Share  of Series C  Preferred Stock shall have  no right to  vote on any matter to be

submitted for a vote to shareholders of the Company, until such time as conversion into Common Stock

has taken place.

5)    Adjustment. In the event that the Company shall, at any time after the issuance of any Share of Series

C  Preferred  Stock,  (a)  declare  any  dividend  on  Common  Stock  payable  in  shares  of  Common  Stock,

(b)  subdivide  or  effectuate  any  stock-split  of  the  outstanding  Common  Stock  or  (c)  combine  or

recapitalize  the  outstanding  Common  Stock  into  a  different  number  of  shares,  then  in  each  such  case

the Company shall simultaneously effect a proportional adjustment to the number of outstanding Shares

of Series C Preferred Stock.

6)    Consolidation,   Merger,   Etc. In   the   event   the   Company   enters   into   any   consolidation,   merger,

combination or other transaction in which the shares of Common Stock are exchanged for or changed

into other stock or securities, cash and/or any other property, then in any such case the Shares of Series

C  Preferred  Stock  and  any cumulative  dividends  shall at  the  same  time  be  redeemed  by  the  Company

in accordance with redemption rights provided herein, or similarly exchanged or changed into preferred

stock of the surviving Company with the same rights and preferences as the Series C Preferred Stock.

Parallax Health Sciences, Inc.

Series C Preferred Stock

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Designation



7)    Waiver. Any of the rights, powers, preferences and other terms of the Series C Preferred Stock set forth

herein may be waived on behalf of a holder of Shares in its sole discretion.

8)    Assignment. Each holder of Shares of Series C Preferred Stock shall be entitled to transfer some or all

of  its  Shares  to  one  or  more  affiliated  partnerships  or  funds  managed  by  it  or  any  of  such  holder’s

respective directors, officers or partners; provided, however, that any such transferee agrees in writing

to  be  subject  to  the  identical  terms  of  any  conversion  and/or  related  agreements  entered  into  by  the

holder thereof in connection with the issuance of the transferred Shares.

9)    Redemption Rights. The Company may, by a resolution of the Board and in compliance with the NRS,

redeem and purchase any of its issued and outstanding Series C Preferred Stock. No such purchase or

redemption  shall  be  made  if  the  Company  is  insolvent  at  the  time  of  the  proposed  purchase  or

redemption  or  if  the  proposed  purchase  or  redemption  would  render  the  Company  insolvent.  If  the

Company  proposes,  at  its  option,  to  redeem  some  but  not  all  of  the  shares  of  any  class  or  series,  the

Board  may,  subject  to  the special  rights  and  restrictions  attached  to  such  shares,  decide  the  manner  in

which  the  shares  to  be  redeemed  shall  be  selected  and  such  redemption  may  or  may  not  be  made  pro

rata among every shareholder holding any such shares as the Board may determine.

10)  Re-issuance.   No  share  or  shares  of  Series  C  Preferred  Stock  acquired  by  the  Company  by  reason  of

conversion, redemption or otherwise shall be reissued as Series C Preferred Stock, and all such shares

thereafter  shall  be  returned  to  the  Company’s  treasury  under  the  status  of  undesignated  and  un-issued

shares of Preferred Stock of the Company.

11)  Notices.  Unless  otherwise  specified  in  the  Company’s  Certificate  of  Incorporation  or  Bylaws,  all

notices  or  communications  given  hereunder  shall  be  in  writing  and,  if  to  the  Company,  shall  be

delivered to it as its principal executive offices, and if to any Series C Holder, shall be delivered to it at

its address as it appears on the stock books of the Company.

12)  Transfer   Agent   Notice.     The   Company   shall   immediately,   upon   filing   of   this   Certificate   of

Amendment,  provide  its  transfer  agent  with  copies  of  this  Certificate  of  Amendment  and  notify  its

transfer  agent  of  all  rights,  conditions,  terms  and  requirements  hereunder.  In  the  event  the  Company

changes  transfer  agents  following  the  filing  of  this  Certificate  of  Amendment,  any  new  transfer  agent

shall  immediately  receive  copies  of  these  Articles  and  be  notified  of  all  rights,  conditions,  terms  and

requirements hereunder.

13)  Amendment. No  provision  of  this  Certificate  of  Designation  may  be  amended,  modified  or  waived

except by an instrument in writing executed by the Company and the holders of a majority of Shares of

Series  C  Preferred  Stock,  and  any  such  written  amendment,  modification  or  waiver  will  be  binding

upon  the  Company  and  each  holder  of  Series  C  Preferred  Stock;  provided,  that  no  such  action  shall

change  or  waive  (a)  the  definition  of  Liquidation  Value,  (b)  the  rate  at  which  or  the  manner  in  which

dividends on the Series C Preferred Stock accrues or accumulates, without the prior written consent of

holders of at least seventy-five (75%) of all outstanding Shares of Series C Preferred Stock.

14)  Severability.  If any word, phrase, provision or clause of this Certificate is deemed to be invalid, illegal,

or unenforceable, only specific content shall be deemed stricken from this Certificate and all remaining

language,  content,  rights,  restrictions  and  privileges  of  this  Certificate  shall  remain  in  effect.   If  any

word,  phrase,  provision  or  clause  of  this  Certificate  is  inapplicable  to  any  person  or  circumstance,  it

shall nevertheless remain applicable to all other persons and circumstances.

(Signature Page immediately following)

Parallax Health Sciences, Inc.

Series C Preferred Stock

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Designation



IN WITNESS WHEREOF, the undersigned directors have hereunto set their hands to this Certificate

of Designation on February 5, 2019.

/s/ Paul R. Arena

/s/ John L. Ogden

Paul R. Arena

John L. Ogden

/s/ Calli R. Bucci

/s/ Edward W. Withrow Jr.

Calli R. Bucci

Edward W. Withrow Jr.

/s/ Nathaniel T. Bradley

Nathaniel T. Bradley

Parallax Health Sciences, Inc.

Series C Preferred Stock

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Designation