On February 22, 2021 ChromaDex Corp. (NASDAQ: CDXC) reported that it has entered into a securities purchase agreement for the sale of $25.0 million of its common stock in a private placement (Press release, ChromaDex, FEB 22, 2021, View Source [SID1234575356]). The private placement was led by a new international investor and is expected to close on or about February 23, 2021, subject to the satisfaction of customary closing conditions. In connection with the investment, the Company agreed to sell 3,846,153 shares of its common stock at a per share price of $6.50, for gross proceeds of approximately $25.0 million.
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The net proceeds from the private placement are expected to provide ChromaDex with added resources to accelerate growth of the Tru Niagen global brand, advance clinical research on NAD+ precursors, and support general corporate purposes.
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.
"With this additional capital, we intend to further our position as the world’s leading NAD+ company with expanded scientific research on nicotinamide riboside (NR) and other NAD+ precursors," says ChromaDex CEO Rob Fried. "We will also expand our marketing efforts on our flagship consumer brand, Tru Niagen, the safest and most efficient way to boost NAD+ levels, while continuing to protect our intellectual property against infringers. We are honored to have EverFund as an investor who sees the significant opportunity for Niagen globally."