Cardium Therapeutics announced that its MedPodium® operating unit has acquired the assets, business and product portfolio of privately held To Go Brands® to support the expansion of Cardium's health sciences nutraceutical brand platform. To Go Brands have introduced products in a number of food, drug and mass channel retailers, and the company recorded revenues of approximately $1.7 million for the first six months of 2012.
San Diego, Calif.-based To Go Brands develops, markets and sells a portfolio of more than 25 products, including nutraceutical powder mixes, supplements and chews to support healthy lifestyles. The product line includes antioxidant-rich drink mixes in convenient stick packs that are designed to pour directly into a water bottle, as well as mix packages for home use and capsule-based dietary supplements, including Trim Energy Green Coffee Bean™, which supports healthy weight loss. These products are sold through food, drug and mass channels at retailers including Whole Foods, CVS, Kroger, GNC, Jewel-Osco, Ralph's Supermarkets, Meijr and the Vitamin Shoppe and from the company's web-based store. To learn more about To Go Brands, please visit togobrands.com. An updated investor presentation that includes information on To Go Brands will be available on Cardium's website at http://phx.corporate-ir.net/phoenix.zhtml?c=77949&p=irol-presentations.
"Our acquisition of To Go Brands is focused on building Cardium's MedPodium in-house brand platform and health sciences business. To Go Brands have an established brand, a portfolio of marketed products, established logistics and distribution capabilities, a website e-commerce platform, and an experienced management team with key contacts and a track record of developing and placing new and innovative health and nutraceutical products into the mass, food and drug retail channels. To Go Brands will coordinate Cardium's health sciences brand platform, including the MedPodium Nutra-Apps® product line, as well as our strategic investment in SourceOne Global Partners, a leading supplier of science-based ingredients and proprietary formulas to the national supplement and functional food and beverage industries. According to a new industry report, U.S. supplement sales are estimated to total $11.5 billion in 2012 and are projected to reach $15.5 billion by 2017. The success of products like Five Hour Energy® have shown that the nutraceutical space has the potential to generate billion dollar products without the extensive regulatory and other hurdles biologics and pharmaceuticals face," stated Christopher J. Reinhard, CEO of Cardium.
"Cardium continues to focus on the strategic partnering, business development and economic monetization of our advanced tissue engineering investment that includes our FDA-cleared Excellagen professional-use wound care product, which is designed as an acellular biological modulator to activate the healing process. At the same time, bioRASI, our development partner, continues to advance the international ASPIRE Phase 3 clinical development of our Generx [Ad5FGF-4] DNA-based angiogenic biologic product candidate for the potential treatment of patients with myocardial ischemia due to coronary artery disease. In addition, consistent with our capital-efficient business model, we continue to actively evaluate new technologies and business opportunities," Mr. Reinhard added.
Under the terms of the asset purchase agreement, Cardium issued 8.4 million unregistered shares of common stock, representing approximately 6.5 percent of outstanding common stock after giving effect for the issuance of shares for the acquisition, to be held in escrow for six months and then released in tranches over the following one year period ending 18 months following the closing of the transaction. An additional 1.2 million shares of common stock have been issued and will be held in escrow for an 18-month period for unrecognized claims that may arise in connection with the asset purchase transaction or the related business. The transaction covers the acquisition of the assets, business and product portfolio of To Go Brands Inc. The shares of Cardium common stock that have been issued under the purchase agreement are unregistered and restricted for sale pursuant to Rule 144 of the Securities Exchange Act and certain other conditions. To Go Brands recorded revenues of approximately $1.7 million for the first six months of 2012. Cardium plans to file a Form 8-K/A providing audited financial statements of the To Go Brands business.