ChromaDex Announces $25 Million Private Placement of Common Stock
ChromaDex Corp. (NASDAQ: CDXC) has announced a securities purchase agreement for a private placement of $25 million in common stock. The placement involves selling 3,846,153 shares at $6.50 each, led by a new international investor, with expected closure by February 23, 2021. The funds will enhance the growth of its flagship product, Tru Niagen®, and support clinical research on NAD+ precursors. ChromaDex will enter a registration rights agreement and assures these shares are not registered under the Securities Act of 1933.
- The private placement will raise $25 million, bolstering financial resources.
- Funds are earmarked for accelerating growth of the Tru Niagen® brand and advancing NAD+ precursors research.
- A new international investor is involved, potentially increasing market confidence.
- The shares sold will not be registered under the Securities Act, limiting immediate sale options.
ChromaDex Corp. (NASDAQ: CDXC) announced today that it has entered into a securities purchase agreement for the sale of
The net proceeds from the private placement are expected to provide ChromaDex with added resources to accelerate growth of the Tru Niagen® global brand, advance clinical research on NAD+ precursors, and support general corporate purposes.
The shares of common stock being sold in the private placement will not have been registered under the Securities Act of 1933, as amended (the “Act”). Accordingly, such shares may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements under the Act. In connection with the private placement, ChromaDex expects to enter into a registration rights agreement with the investors. Additional details about the transaction are included in a Current Report on Form 8-K filed by ChromaDex concurrently with this release. This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer or sale would be unlawful prior to the registration or qualification under the securities laws of such state. Any offering of the securities under the resale registration statement will only be by means of a prospectus.
“With this additional capital, we intend to further our position as the world’s leading NAD+ company with expanded scientific research on nicotinamide riboside (NR) and other NAD+ precursors,” says ChromaDex CEO Rob Fried. “We will also expand our marketing efforts on our flagship consumer brand, Tru Niagen, the safest and most efficient way to boost NAD+ levels, while continuing to protect our intellectual property against infringers. We are honored to have EverFund as an investor who sees the significant opportunity for Niagen globally.”
For additional information about ChromaDex, please visit www.chromadex.com.
About ChromaDex:
ChromaDex Corp. is a global bioscience company dedicated to healthy aging. The ChromaDex team, which includes world-renowned scientists, is pioneering research on nicotinamide adenine dinucleotide (NAD+), levels of which decline with age. ChromaDex is the innovator behind NAD+ precursor nicotinamide riboside (NR), commercialized as the flagship ingredient Niagen®. Nicotinamide riboside and other NAD+ precursors are protected by ChromaDex’s patent portfolio. ChromaDex delivers Niagen® as the sole active ingredient in its consumer product Tru Niagen® available at www.truniagen.com and through partnerships with global retailers and distributors. ChromaDex maintains a website at www.chromadex.com to which ChromaDex regularly posts copies of its press releases as well as additional and financial information about the Company.
Forward-Looking Statements:
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, including statements related to timing of the closing of the transaction, the anticipated proceeds to be received in the transaction, the expected use of such proceeds, and the quote from ChromaDex’s CEO. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects," "anticipates," "intends," "estimates," "plans," "potential," "possible," "probable," "believes," "seeks," "may," "will," "should," "could" or the negative of such terms or other similar expressions. More detailed information about ChromaDex and the risk factors that may affect the realization of forward-looking statements is set forth in ChromaDex's Annual Report on Form 10-K for the fiscal year ended December 31, 2019 as amended, ChromaDex's Quarterly Reports on Form 10-Q and other filings submitted by ChromaDex to the SEC, copies of which may be obtained from the SEC's website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and actual results may differ materially from those suggested by these forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement and ChromaDex undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210222005306/en/
FAQ
What is the private placement amount for ChromaDex Corp. (CDXC)?
When is the expected closure date for the ChromaDex private placement?
What is the per share price for the ChromaDex common stock in the private placement?
How will ChromaDex use the proceeds from the private placement?
Who is leading the private placement for ChromaDex Corp. (CDXC)?
