IRVINE, Calif., Sept. 30, 2014 /PRNewswire/
-- ChromaDex Corp. (OTCQB: CDXC), an innovative
natural products company that provides proprietary ingredients and
science-based solutions to the dietary supplement, food and
beverage, cosmetic and pharmaceutical industries, announced today
that it closed on a $5.0
million growth capital debt financing from Hercules Technology
Growth Capital (NYSE: HTGC). The financing will provide
ChromaDex with additional working capital to support its
rapidly-growing ingredient business, as well as accelerate the
Company's research and development efforts.
Commenting on the announcement, Frank
Jaksch, CEO and Founder of ChromaDex, stated: "This
financing should provide ChromaDex with sufficient capital to fund
our operations at least until late 2015, as our business
transitions to cash flow positive and profitable. The Hercules
funding will provide ample working capital to continue to grow the
emerging ingredient segment of our business, allow us to accelerate
the R&D efforts on our existing ingredient portfolio, and
continue to develop our new ingredient pipeline. We are pleased to
partner with Hercules, a NYSE listed specialty finance company with
over $1.0 billion in total
assets."
Chad Norman, Managing Director at
Hercules, commented: "We have been following ChromaDex for more
than three years and have been impressed with the Company's
progress in executing its business plan and its emphasis on new
product offerings, such as its new ingredients business
line. The Company's current ingredient portfolio, highlighted
by its patented NIAGEN™ nicotinamide riboside, coupled with their
unique business model for acquiring and commercializing new
ingredient technologies, has great potential for substantial and
sustainable long-term growth. We are proud to be a capital provider
to ChromaDex."
The initial funding of $2.5 million, which closed
on September 29, 2014, is in the form of a secured loan and
includes an interest only feature of up to 12 months, followed by
equal amortizing of principal and interest over the remaining term
of the loan, or approximately 30 equal monthly installments. The
loan coupon interest rate is a prime-based variable rate. In
connection with the growth capital, ChromaDex issued Hercules
warrants to purchase 419,021 (subject to customary adjustments
under certain circumstances) shares of ChromaDex common stock at an
exercise price of $1.062 per share. The Company has an
option to drawn down a second tranche of growth capital of
approximately $2.5 million through
July 31, 2015. ChromaDex and Hercules
both have individual options to convert up to $500,000 ($1,000,000 in the aggregate) of scheduled
principal payments into common stock at a fixed conversion price of
$1.293 per share. Further information
with respect to the loan agreement with Hercules is contained in a
Current Report on Form 8-K filed with the Securities and Exchange
Commission.
About ChromaDex:
ChromaDex is an innovative natural
products company that discovers, acquires, develops and
commercializes proprietary-based ingredient technologies through
its unique business model that utilizes its wholly owned
synergistic business units, including ingredient technologies,
natural product fine chemicals (known as "phytochemicals"),
chemistry and analytical testing services, and product regulatory
and safety consulting (as Spherix Consulting). The company provides
seamless science-based solutions to the nutritional supplement,
food and beverage, animal health, cosmetic and pharmaceutical
industries. The ChromaDex ingredient technologies unit includes
products backed with extensive scientific research and intellectual
property. Its ingredient portfolio includes pTeroPure®
pterostilbene; ProC3G®, a natural black rice containing
cyanidin-3-glucoside; PURENERGY®, a caffeine-pTeroPure®
cocrystal; and NIAGEN™, its recently launched branded nicotinamide
riboside, a potent NAD+ booster and novel next-generation B
vitamin. To learn more about ChromaDex, visit
www.chromadex.com.
About Hercules Technology Growth Capital,
Inc.
Hercules Technology Growth Capital, Inc. (NYSE: HTGC)
("Hercules") is the leading specialty finance company focused on
providing senior secured loans to venture capital-backed companies
in technology-related markets, including technology, biotechnology,
life science, and energy & renewable technology industries, at
all stages of development. Since inception (December 2003), Hercules has committed more than
$4.4 billion to over 290 companies
and is the lender of choice for entrepreneurs and venture capital
firms seeking growth capital financing.
Hercules' common stock trades on the New York Stock Exchange
(NYSE) under the ticker symbol "HTGC."
In addition, Hercules has three outstanding bond issuances of
7.00% Senior Notes due April 2019,
7.00% Senior Notes due September
2019, and 6.25% Notes due July
2024, which trade on the NYSE under the symbols "HTGZ",
"HTGY," and "HTGX," respectively.
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. 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. Actual
results may differ materially from those set forth in this release
due to the risks and uncertainties inherent in ChromaDex's
business. 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 28,
2013, ChromaDex's Quarter 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. 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 Media
Inquiries:
Beckerman
PR
Jerry
Schranz
201-465-8020
jschranz@beckermanpr.com
ChromaDex Company Contact:
Laura Kelly, Executive Assistant
949-419-0288
laurak@chromadex.com
Statements in this press release have not been evaluated by
the Food and Drug Administration. Products or ingredients are
not intended to diagnose, treat, cure or prevent any
disease.
SOURCE ChromaDex Corp.