Nutrition 21 places over $17mn in shares to fund marketing

By Clarisse Douaud

- Last updated on GMT

Related tags: Scientific advisory board, Investment, Finance

Nutrition 21, the developer of chromium-based Chromax, announced it
has entered into definitive agreements to privately place shares
and warrants to fund $17.75mn for marketing and retailing of its
condition-specific products.

The New York state-based company previously used its science portfolio to support branded ingredient Chromax's use in supplements. However, the company has opted for a change in direction and invested heavily in promoting Chromax directly as a finished supplement product through food, drug and mass retail outlets. The company is going to attempt to take the market by storm, because it says its products have the potential to be attractive to a wide variety of consumers. "Our products target markets significant in size and critical to quality of life and health,"​ said Paul Intlekofer, Nutrition 21 president and CEO. Through its new condition-specific focus, the company will be targeting diseases from diabetes, to arthritis, to cardiovascular conditions. The marketing and advertising will focus on branded Chromax, but also the company's Iceland Health omega-3 and Iceland Health Joint Relief, as well as its line of Diabetes Essentials products and Core4Life Advanced Memory Formula. "Cognitive decline is a natural part of the aging process, and proper mind, memory and brain function is the number one end health benefit that is sought by the aging Baby Boomer who over 45 years of age,"​ said Intlekofer. To raise the funding for these product campaigns, Nutrition 21 privately place 17,750 shares of preferred stock and 6,715,218 warrants for aggregate gross. The securities are being sold to institutional investors including Midsummer Investment and Fort Mason Capital. Collins Stewart served as the lead placement agent. "The investments we made during this past year have enabled us to build our brands and together with this financing have positioned us to generate sustainable growth over the next few years,"​ said Intlekofer. In an additional bid to back its products, Nutrition 21 this year has announced the formation of a scientific advisory board for guidance on research and future product development. The scientific advisory board is designed to comprise physicians and researchers with expertise in the therapeutic areas targeted by Nutrition 21's products.

Related topics: Suppliers

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