UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 


 

Form 8-K

 

 

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): October 6, 2014

 


 

RICH PHARMACEUTICALS, INC.

(Exact name of registrant as specified in its charter)  

 

NEVADA 000-54767 46-3259117

(State or other jurisdiction of

incorporation or organization)

Commission file number

(IRS Employer

Identification No.)

 

9595 Wilshire Blvd, Suite 900

Beverly Hills, CA 90212

(Address of principal executive offices)

 

(323) 424-3169

(Registrant’s telephone number)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

 

On October 6, 2014, 2014, Rich Pharmaceuticals, Inc. (the “Company”) executed an Assignment Agreement (the “Assignment Agreement”) with Richard L. Chang Holding's, LLC (“Holdings LLC”) and Imagic LLC (“Imagic LLC”) pursuant to which Holdings LLC and Imagic LLC exercised the option under the Memorandum of Understanding and Asset Assignment Agreement dated July 26, 2013 to assign any and all interest it had in the indication, patents and intellectual property related to treatment of Hodgkin’s Lymphoma, utility patent application number 61998397, entitled COMPOSITIONS AND METHODS OF USE OF PHORBOL ESTERS FOR THE TREATMENT OF HODGKIN’S LYMPHOMA pursuant to the terms of the Assignment Agreement. The Company will issue 220,792,028 shares of restricted Company common stock to Imagic LLC in consideration for the assignment. Imagic LLC is owned and controlled by Ben Chang. The foregoing is only a brief description of the material terms of the Assignment, and does not purport to be a complete description of the rights and obligations of the parties thereunder and such descriptions are qualified in their entirety by reference to the Assignment which is filed as an exhibit to this Current Report.

 

ITEM 3.02. UNREGISTERED SALES OF EQUITY SECURITIES

 

In connection with the Assignment described in Item 1.01 above, the Company has agreed to issue 220,792,028 shares of the Company’s restricted common stock to Imagic LLC in accordance with the terms and subject to the conditions set forth in the Assignment. This issuance of shares will be made in reliance on the exemptions or exclusions from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) contained in Section 4(a)(2) of the Securities Act and/or Regulation D promulgated under the Securities Act. The Company’s reliance upon Section 4(2) of the Securities Act in issuing the securities was based upon the following factors: (a) the issuance of the securities was an isolated private transaction by us which did not involve a public offering; (b) there was only one recipient; (c) there were no subsequent or contemporaneous public offerings of the securities by the Company; (d) the securities were not broken down into smaller denominations; (e) the negotiations for the issuance of the securities took place directly between the third party and the Company; and (f) the recipient of the securities was an accredited investor.

 

ITEM 5.02 COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS

 

On October 6, 2014, the Company granted Ben Chang options to purchase 3,000,000 shares of Company common stock under the Rich Pharmaceuticals, Inc. 2013 Stock Option/Stock Issuance Plan. The options have an exercise price of $.0191984 per share; a term of 5 years; are immediately vested; and may be exercised by cashless exercise. The Company also granted Mr. Chang 8,000,000 bonus shares of Company’s restricted common stock.

 

ITEM 8.01 OTHER EVENTS

 

On September 6, 2013, our board of directors approved the adoption of Rich Pharmaceuticals, Inc. 2013 Stock Option/Stock Issuance Plan (the "2013 Plan”). The 2013 Plan is intended to aid the Company in recruiting and retaining key employees, directors or consultants and to motivate them by providing incentives through the granting of awards of stock options or other stock based awards. The 2013 Plan is administered by the board of directors. Directors, officers, employees and consultants of the Company and its affiliates are eligible to participate under the 2013 Plan. A total of 60,004,800 shares of common stock have been reserved for awards under the 2013 Plan.

 

On October 6, 2014, the Board of Directors of the Company approved an amendment to the 2013 Plan to (i) increase the number of shares reserved for awards under the 2013 Plan to 90,004,800 shares; and (ii) modify the definition of Fair Market Value for the determination of exercise prices for Award grants. The foregoing is only a brief description of the material terms of the 2013 Plan Amendment, and does not purport to be a complete description of the rights and obligations of the parties thereunder and such descriptions are qualified in their entirety by reference to the 2013 Plan Amendment which is filed as an exhibit to this Current Report.

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ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

 

No.

Description
10.22 Assignment Agreement dated October 6, 2014
10.23 2013 Plan Amendment dated October 6, 2014

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

RICH PHARMACEUTICALS, INC.
 /s/  Ben Chang
Dated: October 7, 2014 By:

 

Ben Chang

Chief Executive Officer

 

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ASSIGNMENT AGREEMENT

 

This ASSIGNMENT AGREEMENT (“ Agreement ”) is entered into as of October 6, 2014 (the “ Effective Date ”) by and between Rich Pharmaceuticals, Inc., a Nevada Corporation (the “ Company ”), Richard L. Chang Holding’s, LLC (“ Holdings LLC ”), and Imagic LLC, a California limited liability company (“ Imagic LLC ”).

 

WHEREAS, the Company, Imagic LLC, and Holdings LLC are parties to that certain Memorandum of Understanding and Asset Assignment Agreement (the “ Assignment Agreement ”) dated July 18, 2013;

 

WHEREAS, pursuant to the Assignment Agreement dated as of July 16, 2013, Holdings LLC assigned its 100% interest in United States Patent No. 6,063,814 entitled “Phorbol esters as anti-neoplastic and white blood cell elevating agents” and utility patent application titled COMPOSITIONS AND METHODS OF USE OF PHORBOL ESTERS FOR THE TREATMENT OF NEOPLASMS (Acute Myeloid Leukemia) and all related intellectual property, inventions and trade secrets, data, and clinical study results, as well as all indicated intellectual property, inventions and trade secrets, data, and clinical study results thereof worldwide to the Company, with the exception of the indication for Hodgkin’s Lymphoma.

 

WHEREAS, pursuant to Section 2(c) of the Assignment Agreement, on October 6, 2014, 2014 Holdings LLC and Imagic LLC notified the Company in writing of their intent to exercise the option for Holdings LLC to assign to the Company the indication for Hodgkin’s Lymphoma in consideration for the issuance of restricted Company common stock to Imagic LLC;

 

WHEREAS, the Company desires to purchase the Hodgkin’s IP, and Holdings LLC desires to sell the Hodgkin’s IP to the Company, as provided in Section 2(c) of the Assignment Agreement; and

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties agree as follows:

 

1.                   Assignment of Assets.

 

a.                   Assignment. Holdings LLC owns the utility patent application number 61998397, entitled COMPOSITIONS AND METHODS OF USE OF PHORBOL ESTERS FOR THE TREATMENT OF HODGKIN’S LYMPHOMA and all related intellectual property, inventions and trade secrets, data, and clinical study results (collectively, the “ Patent Assets ”). Holdings LLC hereby assigns to the Company all of its right, title and interest in and to the Patent Assets, and in and to all rights to apply for continuations, additional applications or foreign patents relating to the Patent Assets and all proceeds of the foregoing, including, without limitation, any claim by Holdings LLC third parties for past, present, or future infringement of the Patent Assets.

 
 

 

b.                   Further Assurances . Holdings LLC agrees to, and to cause the patent inventors to, cooperate with the Company to enable it to enjoy to the fullest extent the right, title and interest herein conveyed in the Patent Assets in the United States and foreign countries. Such cooperation shall include prompt production of pertinent facts and documents, giving of testimony, execution of petitions, oaths, specifications, executing USPTO assignment documents in favor of the Company, declarations or other papers, and other assistance all to the extent deemed necessary or desirable by the Company (a) for perfecting in the right, title and interest in the Patent Assets; (b) for prosecuting any of the patent applications; (c) for filing and prosecuting substitute, divisional, continuing or additional applications; (d) for filing and prosecuting applications for reissuance of any patents; (e) for interference or other priority proceedings; and (f) for legal proceedings involving the Patent Assets and any applications therefor and any patents granted thereon; provided, however, that the expense incurred by Holdings LLC in providing such cooperation shall be paid for by the Company. This Agreement expressly grants to the Company all rights in the Patent Assets as fully and entirely as the same would have been held and enjoyed by Holdings LLC.

 

c.                    Recordation . Without limiting the generality of the foregoing, Holdings LLC agrees concurrently with the execution of this Agreement to execute a Recordation Form Cover Sheet for recording the assignment in the USPTO. To the extent that the patent laws of any country require the recordation or registration of this Agreement to ensure the continued validity and enforceability of the Patent Assets or this Agreement in connection with the assignment, Holdings LLC shall take whatever action is necessary to record or obtain registration of this Agreement, including the filing of all necessary documents.

 

2.                   Consideration . In consideration of the assignment of the Patent Assets by Holdings LLC, the Company shall issue 220,792,028 shares of restricted Company common stock to Imagic LLC, calculated by reference to Section 2(c) of the Assignment Agreement.

 

3.                   Representations and Warranties .

 

a. Reciprocal . Each of the parties represents and warrants to the other party that (a) it has full right, power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby, (b) this Agreement is a legal and valid obligation binding upon such party and enforceable in accordance with its terms, and (c) the execution, delivery and performance of the Agreement by such party does not conflict with any agreement, instrument or understanding, oral or written, to which it is a party or by which it is bound, nor to such party’s knowledge, violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over it. The Company represents and warrants that as of the Effective Date, it has 423,062,860 shares of common stock outstanding and 6,000,000 shares of Series “A” preferred stock outstanding.

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b. Holdings LLC . Holdings LLC hereby represents and warrants to the Company the following:

 

(i) Holdings LLC is the sole and exclusive owner of all rights, title and interest in the Patent Assets;
(ii) The Patent Assets are free and clear of any liens, license rights (except as set forth in this Agreement), security interests, encumbrances or rights to repurchase;
(iii) Holdings LLC has not assigned, transferred, licensed, pledged or otherwise encumbered any of the Patent Assets or agreed to do so;
(iv) Holdings LLC is not aware of any violation, infringement or misappropriation of any third party’s rights (or any claim thereof) concerning the Patent Assets;
(v) The Patent Assets are properly filed or issued, as applicable, currently in compliance with formal legal requirements (including, without limitation, payment of filing, examination and governmental taxes and maintenance fees) and enforceable;
(vi) Holdings LLC is not aware of any questions or challenges with respect to the patentability or validity of any claims of any existing patents or patent applications relating to the Patent Assets;
(vii) Holdings LLC has paid any annuity, renewal, or administrative fee related to the Patent Assets before the execution of this Agreement;
(viii) In connection with the issuance of restricted shares, Holdings LLC acknowledges that the shares have not been and will not be registered under the Securities Act of 1933, as amended (the “ Securities Act ”) by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends on, among other things, the bona fide nature of the investment intent and the accuracy of its, his or her representations made with respect to the investment. Holdings LLC further acknowledges that the shares will be restricted securities within the meaning of the Securities Act and may not be transferred unless registered or an exemption from registration is available.
(ix) In connection with the issuance of restricted shares, Holdings LLC (i) has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its prospective investment in the shares; (ii) have the ability to bear the economic risks of the prospective investment; (iii) have had all questions which have been asked by Holdings LLC have been satisfactorily answered by the Company and has been provided with and had the opportunity to review all filings made by the Company with the United States Securities and Exchange Commission, which filings are available at the SEC’s website at www.sec.gov; and (iv) have not been offered the shares by any form of general solicitation;
(x) In connection with the issuance of restricted shares, Holdings LLC represents and warrants that it is an "accredited investor" within the meaning of Rule 501 of Regulation D of the Securities Act;
(xi) Holdings LLC has obtained all required board, shareholder and any other consent and approval required or necessary to enter into this Agreement and assign the Patent Assets to the Company, and to have Holdings LLC assign to Ben Chang any rights it has in the Company stock described in Section 2; and
(xii) Holdings LLC represents and warrants that Richard L. Chang is its sole member and manager.

 

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5.                   Governing Law. This Agreement shall be governed by and construed under the laws of the State of Nevada as such laws are applied to contracts entered into and performed entirely within Nevada by Nevada residents.

 

6.                   Transaction Expenses . The parties agree that each party shall be solely responsible for the payment of all transaction expenses incurred by such party relating to the transactions contemplated in this Agreement.

 

7.                   Attorneys' Fees . In the event either party shall bring any action to enforce or protect any of its rights under this Agreement, the prevailing party shall be entitled to recover, in addition to its damages, its reasonable attorneys' fees and costs incurred in connection therewith.

 

8.                   Execution in Counterparts. This Agreement may be executed in one or more counterparts which may be delivered by facsimile or by email in PDF, each of which shall be considered an original instrument, but all of which shall be considered one and the same Agreement.

 

9.                   Binding Agreement . The parties intend for this Agreement to constitute binding, enforceable obligations of the parties.

 

10.                Entire Agreement; Modifications; Miscellaneous . Except as otherwise provided herein, this Agreement represents the entire understanding among the parties with respect to the subject matter of this Agreement, and this Agreement supersedes any and all prior and contemporaneous understandings, agreements, plans, and negotiations, whether written or oral, with respect to the subject matter hereof. All modifications to the Agreement must be in writing and signed by each of the parties hereto. This Agreement shall be construed neutrally, without regard to the party responsible for its preparation.

 

11.                Legal Counsel . Each party to this Agreement hereby represents and warrants to the other party that it has its own legal counsel and it has been advised by its legal counsel with respect to the provisions of this Agreement, and that its decision to execute this Agreement is not based on any reliance upon the advice of any other party or legal counsel other than its own legal counsel.

 

[ Signature Page Follows ]

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IN WITNESS WHEREOF, he undersigned have caused their authorized representatives to execute this Agreement as of the date first set forth above.

 

RICHARD L. CHANG’S HOLDINGS, LLC RICH PHARMACEUTICALS, INC.

 

/s/ Richard L. Chang

By: ____________________________________

Richard L. Chang,

Sole Member and Manager

 

/s/ Ben Chang

By: ____________________________________

Ben Chang, Chairman & CEO

 

IMAGIC LLC

  /s/ Ben Chang

By: ____________________________________

Ben Chang,

Sole Member and Manager

 

 

[Signature Page to Chang Holdings/Rich Pharmaceuticals Assignment]

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RICH PHARMACUETICALS, INC.

2013 EQUITY INCENTIVE PLAN AMENDMENT

October 6, 2014

WHEREAS, Rich Pharmaceuticals, Inc., a Nevada corporation (the " Corporation "), has adopted the 2013 Equity Incentive Plan (the “ 2013 Plan ”) and reserved 60,004,800 shares of the Corporation's common stock (the " Shares ") under the 2013 Plan;

WHEREAS, pursuant to the terms of the Plan, the Board of Directors approved an amendment to the 2013 Plan to (i) increase the amount of shares reserved for issuance by 30,000,000 Shares for a total of 90,004,800 Shares; and (ii) modify the definition of Fair Market Value;

NOW, THEREFORE, the 2013 Plan is hereby amended to provide that (i) the total number of Shares reserved for issuance under the 2013 Plan is 90,004,800; and (ii) the definition of “Fair Market Value” in the Appendix shall be deleted in its entirety and replaced with the following:

K. Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

                                                       (i)             If the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market or any successor system. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

                                                     (ii)             If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists.

                                                    (iii)             If the Common Stock is at the time neither listed on any Stock Exchange nor traded on the Nasdaq National Market, then the Fair Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate including the pricing of any recent capital raising the company has completed or is proposed to complete.

By: /s/ Ben Chang

Ben Chang, CEO