Please note, VFC's Stock House has been monetarily compensated by JSDC LLC on 29 June to cover CDXC.OB for a period of 90 days. The fact that VFC has been compensated inherently indicates a strong bias on my behalf. The goal of this website and all articles published on my behalf is to provide investors with information, opinions, and starting points about various companies across many sectors. It's up to each individual investor to decide what he or she finds relevant.
With August now upon us, it's game time for ChromaDex Corp (NASDAQ:CDXC).
As previously reported, August is the expected timeframe for the commercial launch of the BluScience product line. The launch, consisting of four unique products based on the company's proprietary natural ingredient, pTeroPure, will bring the ChromaDex brand into GNC stores nationwide.
GNC may only be the first wave of the national launch, however, as previous company statements have indicated a potential move into other nationwide retailers, as well, such as Walgreen's, Rite Aid, CVS and Wal-Mart. Any additional distribution would also be supported by a national advertising campaign, which is planned to begin in the first quarter of next year.
For those new to following CDXC and the BluScience product launch, here's a brief rundown of what pTeroPure has to offer:
pTeroPure is a natural ingredient founded on pterostilbene, which occurs naturally in blueberries as a powerful antioxidant and defense system for the plant. Early research has indicated that this ingredient may also provide a significant benefit to humans, especially in the field of sustaining a "healthy heart."
Third party research has also indicated that pTeroPure may assist in blood pressure control and reduce anxiety. Those potential benefits continue to be investigated.
pTeroPure became the basis of ChromaDex's first product launch through the company's "core business" of providing reasearch, laboratory and consultant services to entities looking to investigate natural ingredients such as pterostilbene. This process of being involved from the beginning with the science end of it has allowed ChromaDex to build a solid library of reference standards and has also provided it the opportunity to jump in early with licensing deals.
For instance, the company owns exclusive licensing rights for pterostilbene in the control of cholesterol and, as announced in a recent press release, just licensed from Cornell University the exclusive worldwide rights to a novel manufacturing process for nicotinamide riboside (NR), another natural ingredient that has demonstrated significant early potential in supporting and sustaining human health.
Once the company is "in," so to say, with a licensed ingredient, then the early science can be turned into commercial success, just as the BluScience line will look to prove.
The recently-announced Cott deal, where ChromaDex licensed pTeroPure for a move into the food and beverage sector, also demonstrated the potential to market these ingredients outside of just the dietary supplement arena.
It's growth in multiple areas that has given the company a bold business plan of reaching up to $100 million in revenue 3-5 years down the road, according to statements made in a recent presentation, and has also inspired insiders to support the upcoming catalysts by purchasing shares of CDXC with their own money.
Investors always like to see insiders putting their "money where their mouths are."
With ChromaDex's first commercial launch now upon us this month, it's game time. Watch for the pending launch to be followed-up by a further push into other retailers, and to then be followed up with a full-fledged marketing campaign.
On the stock front, there has also been discussion of a move from the OTCBB to a bigger board, which generally attracts the less speculative investors that a company on the verge of significant growth looks for.
This company is breaking into a multi billion dollar industry right now, and has the potential to enter a couple of more billion-dollar-industries in a few years time as the game plan develops. The pending catalysts and predictions of future growth have CDXC gearing up for prime time.
With the collapse of the markets over the past week, investors also get a chance to take a look at the company while its shares trade for a significant discount, when compared to previously traded levels.
Keep an eye on the developments at ChromaDex. It's game time.
VFC's Stock House has been monetarily compensated by JSDC LLC on 29 June to cover CDXC.OB for a period of 90 days.
Disclosure: I am long CDXC.OB.