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Investment in Nutrition 21, Inc. (NASDAQ: NXXI)

Investment in Nutrition 21, Inc. (NASDAQ: NXXI)

Published 04-11-05

Submitted by Uplift Equity Partners LLC

Uplift Equity Partners LLC invested in Nutrition 21, Inc. (NASDAQ: NXXI), the leading developer and marketer of chromium-based nutritional supplements. Uplift was joined by Midsummer Capital LLC, Cross Atlantic Partners and Enable Capital Management LLC in raising $9.6 million through placing 9,600 shares of Preferred Stock and 2,948,662 Warrants. The Preferred Stock is convertible into common stock at the option of the holders and is subject to anti-dilution provisions. The Preferred Stock pays cumulative cash dividends at the annual rate of 6%. At maturity the Company must redeem the Preferred Stock at the original issue price plus accrued dividends. The Agreement also provides for early redemption of the Preferred Stock on the occurrence of certain default events.

Nutrition 21, Inc. markets Chromax® chromium picolinate, developed Diachrome®, and currently holds 36 patents for nutrition products and uses, 27 of which are for chromium compounds and their uses. Clinical studies have demonstrated that Chromax® chromium picolinate improves glycemic control in people with or at risk for diabetes and related health markets, including obesity, metabolic syndrome, cardiovascular disease and depression.

Stuart Rudick, General Partner at Uplift, stated, "I have been monitoring Nutrition 21 over the past 7 years and now Uplift Equity Partners is extremely excited to team up with Midsummer and Cross Atlantic Partners to support the Company's next phase of accelerated growth. We believe the company has wisely invested the time, money and science to secure their proprietary products to offer safe and effective relief to millions of Diabetes and Cardiac patients."

About Uplift Equity Partners LLC

Established in 2004, with investment teams in New York, San Francisco and London, Uplift Equity Partners LLC is a middle-market private equity firm focused on investing in the Health and Wellbeing market. Uplift invests in companies with leading edge science and technology to improve human performance through health and wellbeing products and services. The Fund sources opportunities for value creation through leveraged buyouts, growth capital infusions and private investments in public entities (PIPEs). The Uplift team has over 90 years of combined operating and investment experience and has completed over 80 private equity transactions totalling over $6 billion. Uplift Advisory and Ambassador Circle is strategically positioned with the leading health and wellbeing experts across the US and Europe.

To learn more about the Fund, please go to www.upliftequity.com.

About Nutrition 21, Inc. (NASDAQ: NXXI)

Nutrition 21 is pioneering an effort to use patented technology, pharmaceutical research and strategic marketing and distribution partnerships to build its position in therapeutic markets. 12 published clinical studies involving over 1500 subjects demonstrate that supplemental use of Chromax® chromium picolinate, at 200 to 1000 mcg has demonstrated an ability to improve glycemic control in people with or at risk for diabetes.

Different from most biotechnology or pharmaceutical companies, the Company is focused on developing products that are marketed under the Dietary Supplement Health and Education Act (DSHEA) regulatory pathway. The Food and Drug Administration's (FDA) regulations for the supplement category enable companies to bring products to market in less time and with less cost than is required for FDA drug approval. In order to establish credibility among healthcare experts, the company is seeking an FDA qualified health claim acknowledging the health benefit of its products in reducing the risk of diabetes and conditions associated with insulin resistance.

Armed with clinical evidence that promises to reveal remarkable, clinically measurable effects of its products in therapeutic approaches to epidemic diseases like diabetes, obesity and depression, Nutrition 21 enjoys the following unique competitive advantages:

  • An established base business that supports a robust clinical research and business development effort
  • An expertise in identifying and patenting nutrition therapies addressing overlapping health markets that affect as many as 25 percent of US adults
  • A history of successfully patenting its innovations and enforcing its patents
  • Research alliances with leading universities, research institutes and scientists
  • A proven track record in leveraging clinical outcomes to build consumer and trade awareness for its nutrition products through public relations

    On 4 April, 2005, a new study conducted by Ohio State University Department of Nutrition showed that Chromax® chromium picolinate is better absorbed by the body than other forms of chromium used as nutritional supplements and in foods. "This study is a significant milestone for Nutrition 21 because it further distinguishes Chromax from other forms of chromium. These data will help guide manufacturers in selecting a better absorbed form of chromium for use in their product formulations, so that they can meet the consumer expectation for delivering product benefits," said Gail Montgomery, president and CEO, Nutrition 21. "Chromax is the most-researched form of chromium. These new findings further support its position as the optimal delivery form for improved chromium nutrition, a category that is increasingly being recognized as important for maintaining metabolic health."
    To learn more about the Company, please go to www.nutrition21.com.

  • Uplift Equity Partners LLC

    Uplift Equity Partners LLC

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