ChromaDex Corp. (OTC:CDXC
, CDXC message board
) scored a moderate gain yesterday after issuing a press release. Today the stock is touted
by a paid promoter.
The press release concerned an advertising campaign for a line of dietary supplements, recently launched by CDXC. The company has hired RJ Palmer as a media planning and buying agency for BluScience.
The market reaction was positive. CDXC closed up 4.76% at $0.66; the volume, however, was just 142 thousand shares.
Paid promotions often successfully bring higher volumes to stocks traded on the OTC, although the consequences for the price vary greatly, and if the price goes up, the increase usually doesn't last long.
The promoter doing the current campaign disclosed $40 thousand paid by the company itself.
The annual report of CDXC for 2011 was published on Mar. 15. The company's sales have increased, but so have their expenses and losses. For 2011 CDXC reported approximately $7.9 million net loss.
CDXC stated in the report that it anticipated it would have enough cash to meet projected operating plans for 2012, but may still seek additional capital prior to the end of the year to meet projects beyond December 2012.