ChromaDex Corp. (OTCMKTS:CDXC) Crashes Below $1 per Share

For many of the numerous pennystocks having a completed product and beginning commercialization are just a distant dream. But even when revenues start flowing in that doesn’t mean the company is out of woods yet. A perfect example is ChromaDex Corp. (OTCMKTS:CDXC). Yesterday they plummeted by 17% and dropped from $1.19 to $0.98. The traded volume of 600 thousand shares tripled the average for the company.

Excluding the last two session CDXC has been making quite an impressive climb up the chart for the past month. Starting from $0.79 in mid-October the stock reached a high of $1.23 last week, a price range it hadn’t visited since September, 2012. The company has a rather unique business plan and according to their own words are the the leading provider of phytochemical reference standards, botanical reference materials and research grade materials for the natural products industry.

Despite generating impressive revenues in the millions they have been plagued by considerable losses and profitability is still eluding them. For the first half of 2013 CDXC managed to achieve a positive balance sheet but as we said in our previous article that was only because they sold the entire BluScience consumer product line to NeutriSci resulting in a gain of $2,891,917. They have a positive working capital of around $3 million but the amount of the accumulated deficit is closing in on $30 million.

In October CDXC were able to improve their cash reserves significantly at the expense of further dilution. The company sold another 3.5 million of its common shares for total proceeds of $3 million, or $0.85 per share which was just a bit lower than the market price at the time. On October 21 they announced that equity financing from the NYSE Euronext-listed company DSM Venturing was received but more details about the deal were not disclosed.

CDXC have started to take some cost-reduction measures and if the results in the next report show improvement may be able to retrace their steps to prices above $1 per share. Last week they submitted a notification of late filing so the quarterly report should be filed sometime this week.

Yesterday the stock of Decision Diagnostics Corp (OTCBB:DECN) continued to go higher and higher after they won the court battle with the industry giant Johnson & Johnson (NYSE:JNJ). The shares of the company are currently trading for $1.07 which is a new 52-week high. Another medical company – Liberator Medical Holdings, Inc. (OTCBB:LBMH) announced that they have been cleared for uplisting to the NYSE national exchange and finished their last trading day on OTCBB 10% up at $2.36.