Capital Resource Partners V has recently completed an $8.5 million investment in Ganeden Biotech, Inc., a leading developer and marketer of over-the-counter probiotic products that help maintain proper gastro-intestinal function and promote general immune health.
Ganeden has identified and patented a unique strain of probiotic bacteria and a proprietary delivery system that has allowed the Company to overcome the manufacturing, stability and delivery challenges that previously inhibited widespread commercial use of probiotics. By utilizing this technology, the Company has successfully built a leading brand of over-the-counter products for the treatment of digestive ailments such as Irritable Bowel Syndrome and Lactose Intolerance and has recently come to market with a general, daily-use probiotic under the name SustenexTM that is proven to support overall digestive and immune health. In addition, the Company is currently in negotiations and clinical trials with 50+ consumer product and animal feed companies who are focused on employing Ganeden’s probiotic technology for use in functional food products and dietary supplements.
CRP’s subordinated debt investment is being made alongside a Preferred Stock investment provided by Koninklijke DSM N.V., a large Dutch nutritional supplement and ingredient company and a small group of individual investors. This capital raise represents Ganeden’s first round of institutional financing and will provide the Company with the necessary capital to fund its ongoing sales and marketing efforts and its rapidly growing licensing business.