ChromaDex to sell its BluScience consumer product line to NeutriSci

US-based science-based solutions and ingredients company ChromaDex has announced that it has signed a letter of intent (LOI) with the US-based nutraceutical products company NeutriSci to sell its BluScience consumer product line.

The BluScience line of products are currently available in more than 15,000 retail locations across the US.

Under the terms of the LOI, the total transaction is valued approximately at $6m at closing level and will consist of a combination of cash, senior secured debt and an ownership interest in NeutriSci.

After the completion of transaction, ChromaDex will earn a royalty on future net sales of BluScience products as well as a supply agreement with NeutriSci for its patented pTeroPure pterostilbene, which will continue to be the key active ingredient in the BluScience product line.

ChromaDex will also retain all rights and ownership to its pTeroPure pterostilbene.

NeutriSci said it has paid a non-refundable $250,000 deposit to ChromaDex, which will be applied towards the total consideration to be paid.

The transaction is expected to be completed before 31 March 2013 upon satisfaction of various closing conditions.

NeutriSci president and CEO Keith Bushfield said the the firm expects that ChromaDex has a brand in BluScience that offers what consumers require – a clinically proven product line based on scientific research and development.

"The consumer can be confident in both the efficacy and safety of this amazing natural line of health and wellness products. In addition to the North American market, I am excited to introduce BluScience globally starting with our vast network in Southeast Asia," Bushfield added.

Closing of the proposed transaction is subject to various usual and customary conditions including, without limitation, further due diligence and entering into a definitive asset sale agreement as well as financing conditions.