ChromaDex Announces $7 Million Private Placement of Common Stock
August 14 2019 - 9:10AM
ChromaDex Corp. (NASDAQ:CDXC) announced today that it has entered
into a securities purchase agreement for the sale of $7.0 million
of its common stock in a private placement. The private placement
was led by new strategic investors. The private placement is
expected to close on or about August 15, 2019, subject to the
satisfaction of customary closing conditions. In connection with
the investment, the Company agreed to sell 1,567,748 shares of its
common stock at a per share price of $4.465, for gross proceeds of
approximately $7.0 million. This private placement is in addition
to the $10.0 million convertible notes (the “notes”) issued in May
2019 to existing strategic investors and completes that
transaction.
The net proceeds from the private placement are
expected to provide ChromaDex with added resources to build TRU
NIAGEN into a global brand and continue to lead the industry with
NAD research and product development. The net proceeds are expected
to be invested in international expansion, certain domestic
initiatives, clinical research, and to support general corporate
purposes.
Oppenheimer & Co. Inc. is acting as
placement agent for the transaction.
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.
About ChromaDex: ChromaDex
Corp. is a science-based integrated nutraceutical company
devoted to improving the way people
age. ChromaDex scientists partner with leading
universities and research institutions worldwide to uncover the
full potential of NAD and identify and develop novel, science-based
ingredients. Its flagship
ingredient, NIAGEN® nicotinamide riboside, sold directly
to consumers as TRU NIAGEN®, is backed with clinical and
scientific research, as well as extensive IP protection. TRU
NIAGEN® is helping the world AGE BETTER®. 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.
Important Note on 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. Because such statements are subject to risks and
uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Such
statements include the timing of the closing of the transaction,
the anticipated proceeds to be received in the transaction, the
expected use of such proceeds and entering into a registration
rights agreement. Other risks that contribute to the uncertain
nature of the forward-looking statements are reported in our most
recent Forms 10-Q and 10-K as filed with the SEC. 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.
ChromaDex Investor Relations
Contact:
Brianna Gerber, Sr. Director of FP&A and Investor
Relations
949-419-0288 ext. 127
briannag@chromadex.com
ChromaDex Media Contact:
Alex Worsham, Director of Strategic Partnerships
310-388-6706 ext. 689
alexw@chromadex.com
ChromaDex Corporation
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