secwatch.observer — SEC 8-K summary
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Issuer:     Cardiff Lexington Corp (CDIX)
CIK:        0000811222
Form:       8-K
Filed at:   2024-05-14T23:59:59+00:00
Accession:  0001683168-24-003416
Event type: other_material
Sentiment:  negative
Materiality: 0.85
Item codes: 1.01, 3.02, 3.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Cardiff Lexington exchanges $3.76M note for 938,908 Series Y preferred shares; grants asset security
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- Exchanged $3,755,632 consolidated convertible note with Leonite Capital for 938,908 shares of newly designated Series Y senior convertible preferred stock.
- Series Y preferred carries 10% annual dividend (increasing to 15% upon default), payable in cash or free-trading common stock at Company's option.
- Conversion allowed only after common stock lists on a national exchange; conversion price based on 5-day VWAP, with full-ratchet anti-dilution.
- Company granted Leonite a blanket security interest in all assets via separate Security and Pledge Agreement.
- Leonite receives piggyback registration rights, most-favored-nation clause, and veto over certain financings and structural changes.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/811222/000168316824003416/0001683168-24-003416-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/811222/000168316824003416/cardiff_8k.htm
  HTML page:      https://secwatch.observer/filing/0001683168-24-003416

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