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ChromaDex Provides Update on $62 Million Ingredient Agreement with Network Marketing Company 5LINX®

- 5LINX® To Launch New Product Suite Featuring ChromaDex's Patented NIAGEN™ Nicotinamide Riboside and PURENERGY® at Annual Event in May -


News provided by

ChromaDex Corp.

Apr 23, 2014, 08:25 ET

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IRVINE, Calif., April 23, 2014 /PRNewswire/ -- ChromaDex Corp. (OTCQB: CDXC), an innovative natural products company that provides proprietary, ingredients and science-based solutions to the dietary supplement, food and beverage, animal health, cosmetic and pharmaceutical industries, provided an update today on its previously announced $62 million, four-year ingredient supply and brand licensing agreement with 5LINX®, one of the largest and fastest-growing direct marketing companies in the world.

5LINX® plans on launching several new innovative health and wellness products that feature ChromaDex's recently launched patented NIAGEN™ nicotinamide riboside (NR) and patented PURENERGY® ingredients at its upcoming international event in Atlantic City, NJ.  The event will be held May 14 to 17 and is expected to be attended by thousands of 5LINX® sales associates.  ChromaDex's CEO and founder Frank L. Jaksch, Jr., will attend, and iconic motivational speaker Tony Robbins will be among those addressing the attendees.

Craig Jerabeck, CEO of 5LINX® commented, "The health and wellness story behind NIAGEN™ nicotinamide riboside continues to grow, as numerous favorable studies and articles have been published since this past January when we decided to be among the first to offer dietary supplements featuring NIAGEN™.  Our level of enthusiasm and anticipation continues to grow as we count down the days to our annual event and the launch of our new line of products featuring ChromaDex's patented ingredients."

Jaksch stated, "We are more convinced than ever that the network marketing channel is ideal for the early development and adoption of health and wellness products featuring our patented NIAGEN™ and PURENERGY® ingredients.  Our interaction with the 5LINX® management team has been outstanding.  We will report in our 1st quarter results meaningful revenue related to the 5LINX® deal, and early indications are that 5LINX® will likely easily exceed the first year minimum ingredient purchase requirements set out in our agreement.  I look forward to attending their annual event in May in Atlantic City and to being part of the celebrated launch of their products featuring our ingredients."

In January 2014, 5LINX® was granted marketing rights for ChromaDex's recently launched patented NIAGEN™ nicotinamide riboside (NR) for use in dietary supplements exclusively in the network marketing sales channel in the United States, Canada and the Philippines.  Under the terms of the agreement, 5LINX® must purchase from ChromaDex $2.1 million of NIAGEN™ in 2014, and an aggregate of $46 million of NIAGEN™ from 2015 through 2017.  NIAGEN™ is the first and only commercially available brand of NR, which is found naturally in trace amounts in milk and other foods and is a more potent, no-flush version of niacin (vitamin B3). Published research has shown that NR is perhaps the most potent precursor to NAD+ in the mitochondria of animals. NAD+ is arguably the most important cellular co-factor for improvement of mitochondrial performance and energy metabolism.

5LINX® was also granted marketing rights for ChromaDex's patented PURENERGY® ingredient for use in dietary supplements, with select exclusivity in the network marketing sales channel in the United States, Canada and Philippines.  Under the exclusive network marketing channel agreement, 5LINX® must purchase from ChromaDex $520,000 of PURENERGY® in 2014 and an aggregate of $14 million of PURENERGY® from 2015 through 2017. ChromaDex's PURENERGY® innovative caffeine ingredient is a patented co-crystal combination of caffeine and ChromaDex's pTeroPure® pterostilbene, a potent anti-oxidant found in blueberries. The first human study of PURENERGY® demonstrated PURENERGY® delivers 30 percent more caffeine, stays in the blood stream longer, and is absorbed more slowly than ordinary caffeine. With PURENERGY® formulators of energy products may have the ability to reduce the total amount of caffeine in their products by as much as 50% without sacrificing consumers' expectations from such products.

About Nicotinamide Riboside (NR):

Sometimes referred to as the "Miracle Molecule" or "Hidden Vitamin," NR is found naturally in trace amounts in milk and other foods and is a more potent, no-flush vitamin B3 (Niacin) derivative.

Published research has shown that NR is perhaps the most effective NAD+ booster, an essential metabolite found in all cells. NAD+ is arguably the most important cellular co-factor for improvement of mitochondrial performance and energy metabolism. Mitochondria are the powerhouse of the cell where macronutrients are converted to energy the cell can use. Mitochondria also play an important part in the aging process. It is hoped that by stimulating mitochondrial function with the NR molecule, scientists may see increased longevity as well as other health improvements. Researchers worldwide continue seminal discoveries characterizing the unique properties of NR in a wide range of health benefits. These include: increasing mitochondrial health, increasing muscle endurance, neuroprotection, sirtuin activation, protection against weight gain on high fat diet, protection against oxidative stress, improvement of blood glucose and insulin sensitivity to maintain blood sugar levels already within the normal range.

Findings from a recent study by Weill Cornell Medical College and the Ecole Polytechnique Federale de Lausanne, Switzerland researchers showed mice on a high-fat diet that were fed NR gained 60 percent less weight than mice eating the same high-fat diet without NR. Moreover, unlike the mice that were not fed NR, none of the NR-treated mice had indications that they were developing diabetes and they had improved energy and lower cholesterol levels, all without side effects. The Swiss researchers were quoted as saying the effects of NR on metabolism "are nothing short of astonishing."

A study by researchers from Harvard Medical School in conjunction with the National Institute on Aging was published in December 2013 in CELL demonstrated that mitochondrial dysfunction (a hallmark of aging) in aging mice is due to a disruption in Sirtuin1-dependent nuclear-mitochondrial communication. They further show that a reduction in NAD+ levels is responsible for this disruption. Excitingly, they also show that this mitochondrial dysfunction is readily reversible by administration of a NAD+ precursor. The authors show that "1 week of treatment with a compound that boosts NAD+ levels is sufficient to restore the mitochondrial homeostasis and key biochemical markers of muscle health in a 22-month-old mouse to levels similar to a 6-month-old mouse."

About PURENERGY®:

ChromaDex's PURENERGY® is a novel, patented next-generation caffeine ingredient derived from the technology-driven fusion of caffeine and ChromaDex's patented pTeroPure® pterostilbene. The first human study of PURENERGY® demonstrated PURENERGY® delivers 30% more caffeine, stays in the blood stream longer, and is absorbed more slowly than ordinary caffeine. With PURENERGY® formulators of energy products may have the ability to reduce the total amount of caffeine in their products by as much as 50% without sacrificing consumers' expectations from such products.  Clinical studies show the ingredient provides a rapid and sustained energy boost for at least 6 hours and the potential for a more moderated and gradual finish, preventing the "crash" experienced with caffeine products.

In addition to being a caffeine alternative, PURENERGY® has additional health benefits stemming from its co-crystal formulation with pTeroPure® pterostilbene, which has shown great promise for supporting heart health, cognitive function, anti-aging, weight loss and other metabolic functions. pTeroPure® was named the 2010 North American Most Promising Ingredient of the Year by the independent research company Frost & Sullivan. 

About 5LINX®:

5LINX®  offers a unique work from home business opportunity based on essential products and services people use every day.  5LINX® distributes its products and services through a network of dedicated independent marketing representatives. 5LINX® has earned the distinction as being recognized by Inc. Magazine as one of the 5,000 fastest-growing privately-held companies in the country for the last eight years.  In 2011 and 2012, 5LINX® was named to the Global 100 List compiled by Direct Selling News, the premier direct sales industry magazine, making 5LINX® one of the 100 largest direct sales companies in the world.

About ChromaDex®:

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. The ChromaDex ingredient technologies unit includes products backed with extensive scientific research and intellectual property. Its ingredient portfolio includes pTeroPure® pterostilbene; ProC3G®, a natural black rice containing cyanidin-3-glucoside; PURENERGY® a caffeine-pTeroPure® co-crystal; and NIAGEN™, its recently launched branded nicotinamide riboside, a novel next-generation B vitamin. To learn more about ChromaDex, visit www.chromadex.com.

Forward-Looking Statements:

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects", "anticipates", "intends", "estimates", "plans", "potential", "possible", "probable", "believes", "seeks", "may", "will", "should", "could" or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company's business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2013, the Company's Quarter Reports on Form 10-Q and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC's website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.

ChromaDex Media Inquiries:
Beckerman PR
Jerry Schranz
201-465-8020 
[email protected] 

ChromaDex Company Contact:
Laura Kelly, Executive Assistant
949-419-0288
[email protected]

5LINX Company Contact:
William Faucette, Jr.
Vice-President of North American Sales
585-576-4023
[email protected]

Statements in this press release have not been evaluated by the Food and Drug Administration.  Products or ingredients are not intended to diagnose, treat, cure or prevent any disease.

SOURCE ChromaDex Corp.

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