Exhibit
4.1


 





 


DESCRIPTION
OF CAPITAL STOCK


 


As
of the date of this prospectus, our authorized capital stock consists of 120,000,000 shares of common stock, $0.001 par value,
and 10,000,000 shares of preferred stock, $0.001 par value. A description of material terms and provisions of our amended and
restated certificate of incorporation and amended and restated bylaws affecting the rights of holders of our capital stock is
set forth below. The description is intended as a summary, and is qualified in its entirety by reference to our amended and restated
certificate of incorporation and our amended and restated bylaws.


 


On
October 25, 2017, we effected a 1-for-8 reverse stock split of our registered and outstanding common stock under which every 8
shares of common stock, par value $0.001 per share, was consolidated into one share of common stock par value $0.001 per share.


 


General


 


Prior
to this offering, there has not been an established public trading market for our common stock.


 


Common
Stock


 


As
of December 31, 2019, there were approximately 800 holders of our common stock. The holders of our common stock are entitled to
equal dividends and distributions per share with respect to the common stock when, as and if declared by our board of directors
from funds legally available therefor. No holder of any shares of our common stock has a preemptive right to subscribe for any
of our securities, nor are any common shares subject to redemption or convertible into other securities. Upon liquidation, dissolution
or winding-up of our company, and after payment of creditors and preferred stockholders, if any, the assets will be divided pro
rata on a share-for-share basis among the holders of the shares of our common stock. All shares of our common stock now outstanding
are fully paid, validly issued and non-assessable. Each share of our common stock is entitled to one vote with respect to the
election of any director or any other matter upon which stockholders are required or permitted to vote.


 


Preferred
Stock


 


Our
board of directors is authorized, subject to limitations prescribed by Delaware law, to issue up to 10,000,000 shares of preferred
stock in one or more series, to establish from time to time the number of shares to be included in each series and to fix the
designation, powers, preferences and rights of the shares of each series and any of its qualifications, limitations or restrictions.
Our board of directors can also increase or decrease the number of shares of any series, but not below the number of shares of
that series then outstanding, without any further vote or action by our stockholders. Our board of directors may authorize the
issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the
holders of the common stock. There are currently no shares of preferred stock issued or outstanding. The issuance of preferred
stock, while providing flexibility in connection with financings, possible acquisitions and other corporate purposes, could, among
other things, have the effect of delaying, deferring, discouraging or preventing a change in control of our company, may adversely
affect the market price of our common stock and the voting and other rights of the holders of common stock, and may reduce the
likelihood that common stockholders will receive dividend payments and payments upon liquidation.


 





 



 





IONIQ
SCIENCES


350 West 800 North, Suite 214; Salt Lake City, Utah 84103 | +1.801.736.0729 | www. IONIQsciences.com

 




    	 



    	 



    

 





 


Warrants


 


As
of December 31, 2019, warrants for the issuance of 1,255,667 shares of our common stock were outstanding, all of which are exercisable
at a weighted average exercise price of $5.17 per share.


 


Options


 


As of December 31, 2019,
total options outstanding were 526,135 at a weighted exercise price of $5.85. At December 31, 2019 options for the issuance of
461,135 shares of our common stock were vested which are exercisable at a weighted average exercise price of $6.23 per share.


 


Anti-Takeover
Provisions


 


Our
certificate of incorporation and bylaws include a number of provisions that may have the effect of delaying, deferring or preventing
another party from acquiring control of us and encouraging persons considering unsolicited tender offers or other unilateral takeover
proposals to negotiate with our board of directors rather than pursue non-negotiated takeover attempts. These provisions include
the items described below:



 


	 	●	a
    classified board of directors with three-year staggered terms, which may delay the ability of stockholders to change the membership
    of a majority of our board of directors;
	 	 	 
	 	●	no
    cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;
	 	 	 
	 	●	the
    exclusive right of our board of directors to elect a director to fill a vacancy created by the expansion of the board of directors
    or the resignation, death or removal of a director, which prevents stockholders from being able to fill vacancies on our board
    of directors;
	 	 	 
	 	●	the
    prohibition on removal of directors without cause;
	 	 	 
	 	●	the
    ability of our board of directors to authorize the issuance of shares of preferred stock and to determine the price and other
    terms of those shares, including preferences and voting rights, without stockholder approval, which could be used to significantly
    dilute the ownership of a hostile acquiror;
	 	 	 
	 	●	the
    ability of our board of directors to alter our bylaws without obtaining stockholder approval; and
	 	 	 
	 	●	the
    requirement that a special meeting of stockholders may be called only by the President of the Company or by the board of directors,
    which may delay the ability of our stockholders to force consideration of a proposal or to take action, including the removal
    of directors.


 





 



 





IONIQ
SCIENCES


350 West 800 North, Suite 214; Salt Lake City, Utah 84103 | +1.801.736.0729 | www. IONIQsciences.com

 




    	 



    	 



    

 





 


Section
203 of the Delaware General Corporation Law


 


We
are subject to Section 203 of the Delaware General Corporation Law, which prohibits a Delaware corporation from engaging in any
business combination with any interested stockholder for a period of three years after the date that such stockholder became an
interested stockholder, with the following exceptions:


 


	●	before
    such date, the board of directors of the corporation approved either the business combination or the transaction that resulted
    in the stockholder becoming an interested stockholder;
	 	 
	●	upon
    closing of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder
    owned at least 85% of the voting stock of the corporation outstanding at the time the transaction began, excluding for purposes
    of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those
    shares owned by (1) persons who are directors and also officers and (2) employee stock plans in which employee participants
    do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or
    exchange offer; or
	 	 
	●	on
    or after such date, the business combination is approved by the board of directors and authorized at an annual or special
    meeting of the stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting
    stock that is not owned by the interested stockholder.


 


In
general, Section 203 defines business combination to include the following:


 


	●	any
    merger or consolidation involving the corporation and the interested stockholder;
	 	 
	●	any
    sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder;
	 	 
	●	subject
    to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation
    to the interested stockholder;


 


	●	any
    transaction involving the corporation that has the effect of increasing the proportionate share of the stock or any class
    or series of the corporation beneficially owned by the interested stockholder; or
	 	 
	●	the
    receipt by the interested stockholder of the benefit of any loss, advances, guarantees, pledges or other financial benefits
    by or through the corporation.


 


In
general, Section 203 defines an “interested stockholder” as an entity or person who, together with the person’s
affiliates and associates, beneficially owns, or within three years prior to the time of determination of interested stockholder
status did own, 15% or more of the outstanding voting stock of the corporation.


 


Transfer
Agent and Registrar


 


The
transfer agent and registrar for our common stock is Action Stock Transfer Company. The transfer agent and registrar’s address
is 2469 Fort Union Blvd #214, Cottonwood Heights, UT 84121. Its phone number is (801) 274-1088.


 





 



 





IONIQ
SCIENCES


350 West 800 North, Suite 214; Salt Lake City, Utah 84103 | +1.801.736.0729 | www. IONIQsciences.com