On October 11, 2022 ChromaDex Corp. (NASDAQ:CDXC) ("the Company" or "ChromaDex") a global bioscience company dedicated to healthy aging, reported a new long term commercial license and supply agreement with Nestlé Health Science, a global leader in science-based nutritional health solutions (Press release, ChromaDex, OCT 11, 2022, View Source [SID1234621885]). The new agreement expands the previous supply agreement executed in 2018 to include dietary supplements. The agreement provides Nestlé Health Science the non-exclusive right to manufacture, market, distribute, and sell products using nicotinamide riboside or NR, trademarked Niagen, under its brands world-wide, except where ChromaDex has existing exclusive distribution agreements.
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Rob Fried, CEO of ChromaDex commented, "Niagen is one of the most important new ingredients to have emerged in decades and we are excited to work with the marketing and science departments of the largest dietary supplement and food company in the world to help take it to the next level."
Approved product categories include medical nutritional, functional food and beverage, and multi-ingredient dietary supplements. Consideration for the rights granted to Nestlé Health Science under the agreement include a $1.975 million initial purchase of Niagen. ChromaDex will also receive certain future commercial milestone payments upon achievement of certain net sales targets and tiered royalties relating to net sales. In conjunction with the agreement, the Company entered into a securities purchase agreement where Nestlé Health Science agreed to purchase 3,816,794 shares of the Company’s common stock, based on the volume weighted average price of the Company’s common stock for the ten trading days preceding October 10, 2022 ($1.31 per share) for gross proceeds of $5 million pursuant to a registered direct offering. The securities purchase agreement contains customary representations, warranties and agreements by the Company and customary conditions to closing.
"We are excited with this opportunity to incorporate the leading booster of nicotinamide adenine dinucleotide (NAD+) into our growing portfolio of science-based consumer health, medical nutrition and supplement products," said Greg Behar, CEO of Nestlé Health Science. "As lifespans increase globally, it’s critical that we find innovative, nutritional solutions to help people stay active and healthy for as long as possible. Niagen is a premium, science backed ingredient that fits perfectly within our portfolio, increasing NAD+ for cellular energy support, so consumers can continue to do the things they love."
ChromaDex’s proprietary ingredient, Niagen, is sold directly to consumers as Tru Niagen, which is backed by clinical and scientific research establishing its safety and efficacy at elevating the coenzyme nicotinamide adenine dinucleotide (NAD+) in humans. NAD+ is an important metabolite involved in virtually every metabolic process in the body, most notably energy metabolism and cell repair.
The registered direct offering described above is being made pursuant to a shelf registration statement the Company filed with the Securities and Exchange Commission, or SEC, on June 12, 2020, which became effective on June 26, 2020 (File No. 333-239144) and a related prospectus supplement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.