Yesterday Chromadex announced the pricing of a private placement for $23M dollars. This deal was significant to the Company in that they have padded their purse at a time when they are rolling out Tru Niagen on a global scale. For investors, however, the news held much more significance.
First off, the ability to get a deal done at a ridiculously low 2.5% discount to Friday’s closing price, with no warrants attached, is remarkable. Deals like this happen rarely. And, when they do, it’s for one simple reason; investors are clamoring to get in to the stock.
The lack of bankers involved in this transaction is also extremely noteworthy. In my opinion, CDXC is becoming a quasi-cult stock among some of the richest people in the world. First Li Ka Shing and now Mark Zuckerberg. We are talking about two of the highest profile billionaires, whose moves are followed by billions (no exaggeration) of people. It appears that some very wealthy people are sharing this idea amongst themselves.
Why would these billionaires care about a small supplement company? Certainly, the fact that the stock might double is rather meaningless to them. Does Zuckerberg, net worth of $74 billion, really care if his fund’s $7M investment goes to $14M? Not in the least. No, these investors likely believe that CDXC shares have the potential to be a huge winner. There’s no other reason for them to play in this sandbox.
(Speaking of them playing and sandboxes, check out this article by Forbes on Zuckerberg and his investment group, ICONIQ.)
There’s only one reason they could really believe that ChromaDex will be a stock that returns well in excess of 10X on capital; they must believe in Niagen.
If you’re reading this, you’re probably familiar with the already proven health benefits of Niagen. There are also upwards of 120 ongoing studies that cost more than $50M to run, taking place with third parties to explore the positive effects of Niagen on different functions. The billionaires putting money into CDXC have likely done a lot of homework and must firmly believe in the long-term benefits of Niagen consumption.
This is where it gets super interesting. If they believe in Niagen, and if they are investing in ChromaDex, the billionaire CDXC investors are probably taking Tru Niagen right now. I think that just stands to reason. If you’re going to do your homework on the product and it compels you to buy the stock, why wouldn’t you take the product? I certainly started taking it after learning about the results, which also compelled me to buy the stock at the same time.
If Mark Zuckerberg, one of the richest men in the world, and Li Ka Shing, the most famous and wealthiest Hong Kong investor, are taking Tru Niagen, this will likely not be a secret for long. The person running the world’s largest social media platform, Facebook, taking an anti-aging supplement will start to trend online. Guaranteed.
If and when this happens, expect two things to follow. Sales of Tru Niagen will go viral. And, shares of CDXC will do the same. It’s happening right now as shares of Chromadex are in the middle of a second straight day of up over 5%.
I’m a taker of Tru Niagen. I’m a believer in the product and its anti-aging health benefits. I’m also an owner of the stock in the company that controls Niagen, Chromadex. Basically, I’m a believer.
And, I’m really happy to be joined by Mark Zuckerberg and Li Ka Shing as believers alongside me.
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