Item
3.03 Material Modification to Rights of Security Holders.
The Board of Directors of Moxian, Inc., a Nevada corporation
(the “Company”), has approved a reverse stock split of the Company’s issued and outstanding shares of common
stock, par value $0.001 per share (the “Common Stock”), at a ratio of 1-for-2 (the “Reverse Stock Split”).
The Reverse Stock Split was approved by the Board of Directors on May 24, 2016 and effected on June 20, 2016 (the “Effective
Date”). Simultaneously to the Reverse Stock Split, the number of shares of the Company’s authorized Common Stock was
correspondingly reduced from 500,000,000 shares to 250,000,000 shares. On July 11, 2016, the Company received FINRA’s approval
of the Reverse Stock Split.
The
Reverse Stock Split is being effected in connection with the Company’s intention to apply to list the Common Stock on the
NASDAQ Capital Market. As of the date of this report, the Common Stock is quoted for trading on the OTC Markets Inc. OTCQB Marketplace.
Effect in Marketplace; Symbol; CUSIP Number:
The Reverse Stock Split is effective with FINRA and
in the marketplace on July 12, 2016, at which time the Common Stock will begin trading on a split-adjusted basis. On such date,
the trading symbol for the Common Stock will change to “MOXCD” for a period of 20 business days, after which the final
“D” will be removed from the Company’s trading symbol, which will revert to the original symbol of “MOXC”.
In connection with the Reverse Stock Split, the CUSIP number for the Common Stock will change to 624697207.
Split
Adjustment; Treatment of Fractional Shares:
On
the Effective Date, the total number of shares of Common Stock held by each stockholder of the Company will be converted automatically
into the number of shares of Common Stock equal to (i) the number of issued and outstanding shares of Common Stock held by each
such stockholder immediately prior to the Reverse Stock Split, divided by (ii) 2, with such resulting number of shares rounded
up to the nearest whole share. The Company will issue one whole share of the post-Reverse Stock Split Common Stock to any stockholder
who otherwise would have received a fractional share as a result of the Reverse Stock Split. As a result, no fractional shares
will be issued in connection with the Reverse Stock Split and no cash or other consideration will be paid in connection with any
fractional shares that would otherwise have resulted from the Reverse Stock Split.
Certificated
and Non-Certificated Shares:
Stockholders
who are holding their shares in electronic form at brokerage firms do not need to take any action, as the effect of the Reverse
Stock Split will automatically be reflected in their brokerage accounts. Stockholders holding paper certificates may (but are
not required to) send the certificates to the Company’s transfer agent and registrar, Island Stock Transfer, at the address
set forth below. Island Stock Transfer will issue a new stock certificate reflecting the Reverse Stock Split to each requesting
stockholder.
Island
Stock Transfer
15500
Roosevelt Boulevard,
Suite
301 Clearwater,
Florida
33760
Capitalization:
Immediately prior to the Reverse Stock Split, there
were 128,011,883 shares of Common Stock outstanding. After the Reverse Stock Split, there was approximately 64,005,942 shares of
Common Stock outstanding. The Reverse Stock Split has no effect on the par value of the Common Stock or authorized shares of preferred
stock. Immediately after the Reverse Stock Split, each stockholder’s percentage ownership interest in the Company and proportional
voting power will remain unchanged, except for minor changes and adjustments that will result from the treatment of fractional
shares. The rights and privileges of the holders of shares of Common Stock will be substantially unaffected by the Reverse Stock
Split.