Nutrition 21 sells stock, warrants to raise $17.8 million
PURCHASE, N.Y. Nutrition 21 has raised $17.8 million to be used in the advertising of its consumer healthcare products, the company announced Tuesday.
Nutrition 21 has entered into definitive agreements to privately place 17,750 shares of preferred stock and 6.7 million warrants (certificates entitling the holder to buy a specific amount of securities at a specific price for an extended period) for aggregate gross proceeds of $17.8 million.
The company intends to use the net proceeds from the sale of these securities primarily for marketing at retail and advertising Chromax, Iceland Health Omega 3 and Iceland Health Joint Relief, and for retail launches in the fall of its new Core4Life Advanced Memory Formula and Diabetes Essentials products.
The securities are being sold to a select group of institutional investors including Midsummer Investment and Fort Mason Capital. Collins Stewart served as lead placement agent and Life Science Group served as the co-lead on the offering. “We are pleased to receive the support of a number of high-caliber new and existing institutional investors,” stated Paul Intlekofer, president and chief executive officer of Nutrition 21. “Several of the investors in this financing have followed our strategy closely for some time and are in position to fully appreciate the strength and potential of our products and sales and marketing capabilities. Our products target markets significant in size and critical to quality of life and health. Heart disease continues to be the number one cause of death in the U.S. … [and] arthritis or joint pain is the second most frequently recorded chronic condition in the U.S.”
Each share of preferred stock has a stated value of $1,000 per share and subject to certain conditions is convertible into common stock at the option of the holder at $1.2158 per share. The warrants are exercisable for five years beginning six months after the closing at $1.2158 per share.
Bodee recalls Zencore after FDA finds undeclared drugs in chemical analysis
CENTURY CITY, Calif. Bodee last month voluntarily recalled all of the company’s supplement product sold under the name Zencore Tabs after being informed by representatives of the Food and Drug Administration that lab analyses found the product contained potentially harmful, undeclared pharmaceutical ingredients.
FDA asserted that its chemical analysis revealed that one lot of Zencore Tabs contained aminotadalafil, an analog of tadalafil, the active ingredient in Eli Lilly’s Cialis erectile dysfunction medication.
FDA maintained that Aminotadalafil is close in structure to tadalafil and is expected to possess a similar pharmacological and adverse event profile. Further, FDA declared another lot of Zencore Tabs contained sildenafil, the active ingredient found in Pfizer’s Viagra, as well as sulfosildenafil and sulfohomosildenafil, both are analogs of sildenafil.
Zencore Tabs is sold in health food stores and by mail order nationwide and in Canada. The Zencore Tabs product is sold as a 2-capsule blister pack packaged in a retail booklet with five booklets in a box.
Customers who have this product in their possession should stop using it immediately and contact their physician if they have experienced any problems that may be related to taking this product.
Any adverse events that may be related to the use of this product should be reported to the FDA’s MedWatch Program by phone at 1-800-FDA-1088 or by fax at 1-800-FDA-0178 or by mail at MedWatch, HF-2, FDA, 5600 Fishers Lane, Rockville, MD 20852-9787.
Vitamin Shoppe campaign to fight vitamin-A deficiency blindness
NORTH BERGEN, N.J. The Vitamin Shoppe announced Wednesday it will begin accepting cash donations on behalf of Vitamin Angels in support of that agency’s campaign, Operation 20/20, as part of the vitamin retailer’s 30th anniversary celebrations.
“With our Anniversary Sale in-store, in our catalog and on the web, we know our loyal customers will join us in supporting this important initiative to end childhood blindness caused by [vitamin-A deficiency],” stated Tony Truesdale, president and chief merchandising officer of The Vitamin Shoppe.
Vitamin Angels is committed to eliminating childhood blindness caused by vitamin-A deficiency by the year 2020. Operation 20/20 is the first major step in this global campaign, which launched this year in 15 countries.
The Vitamin Shoppe is raising funds for Vitamin Angels in store at the register. Customers can donate $1 or more to the campaign and sign a Vitamin Angels paper angel to hang in the store. Any customer who donates $5 or more will receive a special Operation 20/20 wristband as a thank you. Online customers can also donate with each purchase at www.vitaminshoppe.com.