IRVINE, CALIF., December 3, 2009 – ChromaDex Corporation (OTCBB: CDXC), a world leader in the development of phytochemical and botanical reference standards, today announced that it has entered into a securities purchase agreement with Jinke Group (Hong Kong) Ltd., under which Jinke has agreed to purchase 1,916,811 shares of common stock for a purchase price of $0.5217 per share, which will provide gross proceeds (as well as net proceeds after expenses) to ChromaDex of approximately $1,000,000. As part of the transaction, Jinke is also receiving warrants to purchase an additional 1,333,334 shares of common stock at $0.80 per share.
“We are pleased that Jinke Group has shown such confidence in ChromaDex,” said Frank Jaksch, CEO and co-founder of the Company. “The funds from Jinke will provide ChromaDex with additional working capital to support our business expansion plans. We are confident this financing will help position the Company to support the next phase of growth in becoming the premier provider of phytochemical and botanical reference standards to the functional food, cosmetic, dietary supplement, pharmaceutical / life sciences and other industries.”
ChromaDex expects to use the net proceeds to fund organic expansion as well as for general corporate purposes and working capital. Neither the sale nor issuance of the shares of common stock, warrants or the shares of common stock underlying the warrants in this transaction has been registered under the Securities Act of 1933, as amended, or applicable state securities laws and will not be offered, sold or transferred in the United States absent registration or an exemption from registration. For more detailed information on this financing, please refer to the Company's Form 8-K and related exhibits that were be filed with the Securities and Exchange Commission on Thursday, December 3, 2009.
ChromaDex is a world leader in the development of phytochemical and botanical reference standards and the creation of associated intellectual property. ChromaDex is committed to sustainable, “green chemistry” and provides the dietary supplement, food, beverage, nutraceutical and cosmetic industries with the analytical tools, products, and services to meet the regulatory, quality, efficacy and safety standards for their products.
Any statements that are not historical facts contained in this release are forward-looking statements. Actual results may differ materially from those projected or implied in any forward-looking statements. Such statements involve risks and uncertainties, including but not limited to those relating to product and customer demand, market acceptance of our products, the effect of economic conditions both nationally and internationally, ability to protect our intellectual property rights, impact of any litigation or infringement actions brought against us, competition from other providers and products, risks in product development, our ability to raise capital to fund continuing operations, the ability to complete transactions, and other factors discussed from time to time in the Company’s Securities and Exchange Commission filings. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made except as required by law.