ChromaDex Corp., an innovative natural products company that provides proprietary ingredients and science-based solutions to the dietary supplement, food and beverage, cosmetic and pharmaceutical industries, announced it closed on a $5.0 million growth capital debt financing from Hercules Technology Growth Capital.  The financing will provide ChromaDex with additional working capital to support its rapidly-growing ingredient business, as well as accelerate the Company's research and development efforts.

Commenting on the announcement, Frank Jaksch, CEO and Founder of ChromaDex, stated: "This financing should provide ChromaDex with sufficient capital to fund our operations at least until late 2015, as our business transitions to cash flow positive and profitable. The Hercules funding will provide ample working capital to continue to grow the emerging ingredient segment of our business, allow us to accelerate the R&D efforts on our existing ingredient portfolio, and continue to develop our new ingredient pipeline. We are pleased to partner with Hercules, a NYSE listed specialty finance company with over $1.0 billion in total assets."

Chad Norman, Managing Director at Hercules, commented: "We have been following ChromaDex for more than three years and have been impressed with the company's progress in executing its business plan and its emphasis on new product offerings, such as its new ingredients business line. The Company's current ingredient portfolio, highlighted by its patented NIAGEN™ nicotinamide riboside, coupled with their unique business model for acquiring and commercializing new ingredient technologies, has great potential for substantial and sustainable long-term growth. We are proud to be a capital provider to ChromaDex."

The initial funding of $2.5 million, which closed on September 29, 2014, is in the form of a secured loan and includes an interest only feature of up to 12 months, followed by equal amortizing of principal and interest over the remaining term of the loan, or approximately 30 equal monthly installments. The loan coupon interest rate is a prime-based variable rate. In connection with the growth capital, ChromaDex issued Hercules warrants to purchase 419,021 (subject to customary adjustments under certain circumstances) shares of ChromaDex common stock at an exercise price of $1.062 per share. The Company has an option to drawn down a second tranche of growth capital of approximately $2.5 million through July 31, 2015. ChromaDex and Hercules both have individual options to convert up to $500,000 ($1,000,000 in the aggregate) of scheduled principal payments into common stock at a fixed conversion price of $1.293 per share.

ChromaDex is an innovative natural products company that discovers, acquires, develops and commercializes proprietary-based ingredient technologies through its unique business model that utilizes its wholly owned synergistic business units, including ingredient technologies, natural product fine chemicals (known as "phytochemicals"), chemistry and analytical testing services, and product regulatory and safety consulting (as Spherix Consulting). The company provides seamless science-based solutions to the nutritional supplement, food and beverage, animal health, cosmetic and pharmaceutical industries.