Nutrition 21 raises funds for Diachrome development
announced yesterday it has raised $3.25 million through the
completion of a private placement of 4,062,500 shares of common
stock to be used primarily for the continued development of its
Diachrome supplement for diabetics.
Chromium-based nutritional supplements manufacturer Nutrition 21 announced yesterday it has raised $3.25 million through the completion of a private placement of 4,062,500 shares of common stock to be used primarily for the continued development of its Diachrome supplement for diabetics.
According to Nutrition 21, which recently announced losses of $10.5 million for the fiscal year 2003, the net proceeds from the sale of these securities are intended for general corporate purposes, including the continued clinical and market development of Diachrome - a patented combination of chromium and biotin - its nutritional therapy for people with diabetes.
The Purchase, New York-based firm says Diachrome helps the body to more effectively use insulin and to better metabolize carbohydrates, fats and proteins. Results from a clinical trial currently being carried out on the supplement are expected in June 30, 2004. Nutrition 21 intends to initially market Diachrome through healthcare channels.
The shares of common stock were sold at $0.80 per share to a select group of institutional and private investors including SF Capital Partners and P.A.W. Long Term Partners. C.E. Unterberg, Towbin acted as financial advisor to the private placement.
