Prenexus Health closes on series B financing which will fund expansion of production facility
Prenexus Health raised $23 million to expand production capacity of its PreneXOS prebiotic ingredient.
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Prenexus Health (Gilbert, AZ), a manufacturer of organic prebiotic ingredients, announced a $15 million first close on its series B financing, which in addition to other financing related to this close, totals over $23 million in expansion financing. Proceeds will be used to significantly expand production capacity at the company’s Gilbert, AZ manufacturing plant. Prenexus uses a novel process to produce certified-organic XOS (xylo-oligosaccharide) from US-grown organic sugar cane.
"Prebiotics are the most exciting frontier in the rapidly evolving field of gut microbiome health due to their ability to feed beneficial bacteria already in the gut and their inherent stability makes them very easy to work with in supplement, food, beverage and companion animal applications," said Michael Bush, CEO of Prenexus Health, and former CEO of probiotics leader Ganeden, in a press release. "Certified-organic, US-made PreneXOS is the ideal prebiotic because it works with a much lower daily dose than other prebiotics, like inulin and other oligosaccharides."
Investors in the funding round included CIBUS/ADM Capital, Continental Grain, Coalescence Partners, DSM Venturing, ONCE Ventures (Otsuka's new venturing arm), and PeakBridge. William Hood & Company acted as Prenexus Health's exclusive financial advisor for the transaction.
