ChromaDex Looks to Raise $10MFriday, February 3, 2012
Irvine-based natural products company ChromaDex Corp. hopes to raise at least $10 million in a couple of stock sales.
ChromaDex stocks are traded on the Over the Counter Bulletin Board.
The company makes ingredients for dietary supplements, cosmetics and other products from fruits and plants.
The company said the money will primarily go toward its BluScience line of dietary supplements, its first consumer brand intended for retail sales. BluScience was launched late January, and a recent deal between ChromaDex and San Francisco-based pharmaceutical distributor McKesson Corp. has increased its retail distribution.
ChromaDex recently brought Jeffrey Himmel as chief executive officer. Himmel invested $1 million in the company as he took the top post.
The company announced the planned public offering of 9,533,333 common shares for 75 cents per share. The company expects to net about $6.4 million, according to a filing to the Securities and Exchange Commission.
It also is selling 4,933,333 shares of common stock in a private placement to a group of investors, including members of the company’s management. The expected net gain is about $3.7 million.
ChromaDex stocks are trading at around 83 cents.
BluScience products contain ChromaDex’s patented product pTeroPure, a supplement based on pterostilbene. The antioxidant compound is found in blueberries and is billed as a way to lower cholesterol.
ChromaDex’s ingredients primarily are based on patents licensed by universities and other research centers.
Chief Executive Himmel said he expects BluScience to be sold at 25,000 retail stores and other online stores by the end of 2012.
The company reported $1.8 million in revenue in the third quarter, up 17% from a year prior. It had a net loss of $2.4 million that quarter.