---
schema_version: "secwatch.filing_event.v1"
accession: "0001753926-23-000680"
form_type: "8-K"
ticker: null
cik: "0001566243"
company_name: "Arax Holdings Corp"
filed_at: "2023-05-16T23:59:59+00:00"
generated_at: "2026-06-14T23:40:08.059754+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.6
calibrated_materiality_score: 0.6
confidence: "high"
source: SEC EDGAR
---

# Arax Holdings issues $3.43M in 10% convertible notes to accredited investors

## Summary
- Aggregate principal of $3,432,980 in convertible notes issued Feb 1–May 10, 2023 to private accredited investors.
- Notes carry 10% annual interest, mature in 2 years; conversion price at 80% of lowest 3 closing prices in prior 10 trading days.
- Conversion limited to 4.99% of outstanding shares per holder; net proceeds used for general working capital.
- Notes issued in exempt private placement under Section 4(a)(2) and Regulation D of the Securities Act.

## SEC filing metadata
- accession: 0001753926-23-000680
- form_type: 8-K
- cik: 0001566243
- company_name: Arax Holdings Corp
- filed_at: 2023-05-16T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.6
- calibrated_materiality_score: 0.6
- confidence: high
- sec_items: 1.01, 2.03, 3.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1566243/000175392623000680/0001753926-23-000680-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1566243/000175392623000680/g083546_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001753926-23-000680
- JSON: https://secwatch.observer/filing/0001753926-23-000680.json
- Plain text: https://secwatch.observer/filing/0001753926-23-000680.txt

## Key facts
- Debt Financings
  Arax Holdings Corp incurred convertible notes of $3,432,980 with various private accredited investors at 10% per annum maturing 2 years from the issue date.
  - Instrument: convertible notes
  - Principal: $3,432,980
  - Counterparty: various private accredited investors
  - Rate: 10% per annum
  - Maturity: 2 years from the issue date
  - Event: incurrence
  source text: From February 1 st through. May 10 th of 2023, Arax Holdings Corp. (the “Company”) entered into a series of convertible notes with various private accredited investors (“Note Holders”), pursuant to which Note Holders entered into convertible promissory notes (the “Notes”) from the Company in the aggregate principal amount of $3,432,980, such principal and the interest thereon convertible into shares of the Company’s common stock at the option of the Note Holder. The Company intends to use the net proceeds ($3,432,980) from the Notes for general working capital purposes. The maturity date of the Notes are 2 years from the issue date (the “Maturity Date”). The Notes shall bear interest at a rate of 10% per annum.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1566243/000175392623000680/0001753926-23-000680-index.htm
- Material Agreements
  Arax Holdings Corp entered into a notes offering with various private accredited investors valued at $3,432,980.
  - Action: entry
  - Agreement: notes offering
  - Counterparty: various private accredited investors
  - Value: $3,432,980
  source text: From February 1 st through. May 10 th of 2023, Arax Holdings Corp. (the “Company”) entered into a series of convertible notes with various private accredited investors (“Note Holders”), pursuant to which Note Holders entered into convertible promissory notes (the “Notes”) from the Company in the aggregate principal amount of $3,432,980
  evidence_url: https://www.sec.gov/Archives/edgar/data/1566243/000175392623000680/0001753926-23-000680-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.