The Irvine, California-based company last week announced the closing of a private placement, which has yielded gross profits of $4.67m.
ChromaDex only last month said it had merged into a publically traded firm as a major step towards its expansion. The group hoped that public ownership would enable it to raise extra funds to make key investments in its business, in order to expand its reference base for botanical standards.
The firm’s ‘reverse merger’ saw it essentially merge into the 'shell' firm Cody Resources, whose shares are publically traded but which is not an operating business. The new entity took on the name of ChromaDex.
On Friday, ChromaDex Corporation said it had completed the last round of sales under a private placement it conducted with its wholly owned subsidiary ChromaDex Inc. This consisted of the sale of a unit of one share of common stock and a warrant to purchase one half the shares of common stock purchased for a price of $1.36 per unit.
The proceeds translated to $4.2m net after expenses.
“This financing will help position ChromaDex to support the next phase of growth in our quest to become the premier provider of phytochemical and botanical reference standards to the functional food, cosmetic, dietary supplement, pharmaceutical / life sciences and other industries,” said ChromaDex CEO Frank Jaksch.
Reference standards
The firm's major focus is the development of reference standards for botanicals, supplement ingredients and functional food ingredients. It currently has standards for over 3000 products.
These include: a P57 standard for the appetite suppressant ingredient hoodia; a punicalagins standard for pomegranate; and a range of standards for the sweetener compound stevia.
Jaksch last month told NutraIngredients-USA.com that the first phase of its expansion would focus on developing standards for a variety of products that have generated repeated inquiries from customers.
These include a range of chlorogenic acid standards for green coffee extract, which has been promoted particularly in the weight loss arena. There are many different chlorogenic acids in green coffee extract, but standards are currently available for only a few of these, he explained. ChromaDex expects to work on expanding the range.
Antioxidants through fermentation
At the end of last month, ChromaDex announced it had licensed the technology to manufacture compounds found in super fruits using fermentation, in line with its design to expand its focus on berry ingredients.
The new technology is expected to allow for in-depth research on health benefits and may open up a new, stable source of natural pigments.
The company already has anthocyanins, leucoanthocyanins and anthocyanidins in its profile, but these are combinations of compounds extracted from fruit. Jaksch said ChromaDex wanted to isolate specific compounds within these classes. While it is possible to do this from the fruit, it is not economical to do so on a commercial scale.
However after the patented technology it has liscenced, developed by the University of Buffalo, would allow for the production of these isolated compounds using fermentation.
The firm believes this will open the way towards a new class of antioxidant compounds for the food, beverage and dietary supplement markets.