Chromadex Corp (OTCMKTS:CDXC) disclosed that it has finalized an exclusive worldwide license and supply deal for Suntava Purple Corn. The product is derived from a non-GMO purple corn hybrid, containing high levels of anthocyanins. The product has a deep purple color and is rich in antioxidants. It gets purple color from the presence of high anthocyanin content. Purple Corn is cultivated in the USA, and is harvested, processed and handled using the same modern, efficient procedures and equipment as used in traditional corn crops.
ChromaDex intends to formulate an extraction procedure to concentrate the anthocyanins content in Suntava Purple Corn. It will be utilized to produce an ingredient with highly concentrated anthocyanin. The company will use the expertise and experience of a toll manufacturer to develop the commercial ingredient. The development work done is carried out in anticipation of a ready market for affordable concentrated anthocyanins in field of dietary supplements, skin care, sports nutrition and food & beverage.
The expert speaks
Suntava CEO, Bill Petrich said that they have got an ideal partner in form of ChromaDex. They have shown both the expertise and wherewithal in commercializing unique ingredient technologies. The management looks forward to work with ChromaDex as they continue to develop new applications and next generation versions of Purple Corn.
Expressing his views on the news, Frank Jaksch, the CEO of Chromadex Corp (OTCMKTS:CDXC), said that anthocyanins have demonstrated many wellness and health benefits. The concern is that the high cost of concentrated anthocyanins has narrow consumer interest and awareness. Purple Corn is a game changer as it will offer huge raw material cost benefit and enable company to make an ingredient that can be marketed well below the prevailing prices of other similar products.
In current trading session, the stock price of CDXC gained 1.22% to close the trading session at $1.33. The stock has a market cap of $142.33 million.