Prenexus Health, a Gilbert-based manufacturer of organic prebiotic ingredients for the supplement, food and beverage industry today announces a $15 million first close on its series B financing which, coupled with additional financings related to this close, total over $23 million in expansion financing. Proceeds from the financing will be used to significantly expand production capacity at the company’s Gilbert, Arizona manufacturing plant. The facility uses a novel process to produce certified-organic XOS (xylo-oligosaccharide) from US-grown organic sugar cane. The resulting ingredient, branded as PreneXOS™, is an effective prebiotic for feeding beneficial probiotic bacteria in the gut microbiome in as little as one gram per day.
“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,” noted Michael Bush, CEO of Prenexus Health, and former CEO of probiotics leader Ganeden. “Certified-organic, US-made PreneXOSâ is the ideal prebiotic because it works with a much lower daily dose than other prebiotics, like inulin and other oligosaccharides.”
“The Gilbert facility will be best-in-class for manufacturing effective prebiotics” added Bill Misconish, President and CFO of Prenexus Health and former CFO of Ganeden. “We look forward to being able to fulfill more of the unprecedented demand we are seeing for this ingredient.”
Investors in the round include 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.