ChromaDex Secures $5.0 Million in Growth Capital Financing from Hercules
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 HTGC, -0.25% 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.”