IRVINE, Calif., Feb. 25, 2013 /PRNewswire/ -- ChromaDex Corporation® (OTCBB: CDXC) ("ChromaDex"), an innovative natural products company that provides proprietary, science-based solutions and ingredients to the dietary supplement, food & beverage, animal health, cosmetic and pharmaceutical industries, and marketer of its branded, patented pterostilbene, pTeroPure®, announced today it has entered into a letter of intent ("LOI") to sell its BluScience consumer product line to NeutriSci International ("NeutriSci"). The BluScience line of products can be found in over 15,000 retail locations across the United States.
Frank Jaksch, CEO and Founder of ChromaDex stated, "By launching the BluScience consumer products, we achieved our primary goal of increasing the awareness of pTeroPure. We are excited to have found a strategic partner with strong nutraceutical consumer product marketing expertise to take the BluScience brand to the next level. We look forward to working with the NeutriSci team to make BluScience a tremendous success."
Mr. Keith Bushfield, NeutriSci President and CEO, stated, "We are pleased and excited that we were able to find such a strong strategic partner as ChromaDex. We feel ChromaDex has built a brand in BluScience that offers what consumers require a clinically proven product line backed by strong scientific research and development. The consumer can be confident in both the efficacy and safety of this amazing natural line of health and wellness products. In addition to the North American market, I am excited to introduce BluScience globally starting with our vast network in Southeast Asia."
Under the terms of the LOI, upon closing the total transaction is valued at approximately $6.0 million and will consist of a combination of cash, senior secured debt and an ownership interest in NeutriSci. ChromaDex will continue to generate revenue through a royalty on future net sales of BluScience products as well as a supply agreement with NeutriSci for its patented pTeroPure pterostilbene, which will continue to be the key active ingredient in the BluScience product line. ChromaDex will retain all rights and ownership to its pTeroPure pterostilbene. NeutriSci paid a non-refundable $250,000 deposit to ChromaDex, which will be applied toward the total consideration to be paid. Closing is expected to occur before March 31, 2013 upon satisfaction of various closing conditions.
Closing of the proposed transaction is subject to numerous usual and customary conditions including, without limitation, further due diligence and entering into a definitive asset sale agreement as well as financing conditions. There can be no assurance that the transactions contemplated by the LOI will be consummated or that any of the conditions to closing will be satisfied. The LOI and this announcement do not constitute an offer to buy, or solicitation of an offer to sell, any securities of ChromaDex or NeutriSci.
Mr. Jaksch continued, "The sale of our BluScience product line will allow ChromaDex to focus on selling and marketing our pTeroPure ingredient, as well as accelerate the development of our novel ingredients pipeline. We continue to be confident about our business strategy of identifying early novel compounds, securing intellectual property, developing commercially viable production processes, investing in clinical data and executing a commercial launch."
ChromaDex® made a strategic decision to create and launch the BluScience product line as a means of generating awareness for its patented and proprietary pTeroPure®. The nationwide launch of BluScience in retail outlets began in earnest in early 2012, and today BluScience is available in more than 15,000 retail locations as well as through prominent online retailers. The BluScience line is currently comprised of:
- EternalBlu supports cellular health and has anti-aging properties
- HeartBlu helps maintain healthy cholesterol levels and supports cardiovascular health
- MemoryBlu supports concentration, memory and cognitive function
- TrimBlu helps control appetite and supports healthy metabolism
- Blu2Go provides a sustained energy boost and supports focus & mental clarity
ChromaDex, Inc. is an innovative natural products company that provides proprietary, science-based solutions and ingredients to the dietary supplement, food & beverage, animal health, cosmetic and pharmaceutical industries. ChromaDex's pipeline of proprietary products include patented pTeroPure® pterostilbene, which was named the 2010 North American Most Promising Ingredient of the Year by the independent research company, Frost & Sullivan. The company has also launched ProC3G, a natural black rice extract containing 35% cyanidin-3-glucoside, NutraGAC, a Gac fruit powder,pteroberry, a natural pterostilbene and organic berry blend, and is in the process of developing Nicotinamide Riboside, a novel next-generation B-vitamin. All products are backed with extensive scientific research and intellectual property. For more information about ChromaDex, please call 949-600-9694.
About NeutriSci International:
NeutriSci International Inc. is an Alberta corporation working as a leader in the innovation, production and formulation of science-based and clinically proven nutraceutical products. Established in 2009, NeutriSci has focused on the market development of several breakthrough nutraceutical products; with an initial focus on areas such as heart and cholesterol health, sleep deprivation therapies, immune defense and men's prostate and sexual health. NeutriSci distributes and manufactures such products as Vendrome, Repose, Veaya Lyfe and ZEO-8. Vendrome is a men's dietary supplement designed to combat certain effects of aging in older men and provide improved vitality in younger men. Repose is a liquid sleep therapy system designed to help alleviate insomnia. LYFE is a health-enhancing natural juice drink meant to help support the body's ability to fight off diseases. Zeo8 is a detoxification drink meant to help trap and expel from the body a variety of toxins like mercury, lead and arsenic, biotoxins, pesticides and radioactive material.
NeutriSci has also developed a proprietary marketing system called Direct Viral MarketingTM or D.V.M.TM. D.V.M.TM is a marketing system utilizing a revolutionary referral platform designed to combine the power of direct marketing with a non-invasive referral system. Management believes that D.V.M.TM is a marketing system that could change the future of Network Sales.
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.
Statements in this release have not been evaluated by the Food and Drug Administration. Products mentioned herein are not intended to diagnose, treat, cure or prevent any disease.
SOURCE ChromaDex Corporation