This week, the share price of ChromaDex Corp. (OTC:CDXC) rose up from the six-month bottom at $0.60 as on Monday a small-cap research and public relations company initiated coverage of CDXC. We received some promotional e-mail as well, which could make the price of the shares rise further up. 
Yesterday, the session closed with a 5.88% increase at $0.90, while the trading volume was almost twice the average with nearly 64,000 traded shares. CDXC opened with a gap, then fell back to $0.80, but finally managed to close higher. According to our database, the promotions will been compensated with $15,000 in cash per month paid by the company itself and the contract with RedChip Companies, Inc. is for a period of 12 months.
As mentioned, RedChip initiated the coverage on Monday this week. Later during the week, it has been also announced that ChromaDex would make a corporate presentation at the RedChip 2011 Small-Cap New York Conference on November 9, 2011, having thus the opportunity to meet potential investors. As the subsequent performance of CDXC shows, the promotional coverage has been a good signal so far, although the stock has been in a strong downtrend recently.
The other news this month came out of Friday. Then, the company announced that its stockholders have approved the proposed reverse-stock split, thus CDXC can take this action at any time prior to September 30, 2012, by a ratio of not less than one-for-two and not more than one-for-ten.
ChromaDex latest quarter report shows a book value for the company’s equity of $4.5 million, while the market cap is currently over $60 million. Further, the sales have decreased on an early basis, while the net loss increased from $270,000 for the six months ended July 3, 2010 to $3 million for the six months ended July 2, 2011. That huge loss was largely due to the increased expenses resulting from the issuance of stock options under CDXC 2010 Private Placement and under the company’s employee stock options plan.
