Denver’s Corp. announced Tuesday that it has made a $2 million “strategic investment” in New Jersey-based BioZone Pharmaceuticals.
MusclePharm develops and markets sports nutritional supplements.
BioZone is a developer, manufacturer and marketer of over-the-counter drugs and preparations, cosmetics and nutritional supplements.
MusclePharm said BioZone’s “QuSome” technology enhances the absorption of topical and other drugs.
“MusclePharm is evaluating the QuSome technology in connection with nutritional supplements to determine the precise benefit of application and if the combination of QuSomes and nutritional supplements will enhance the absorption and speed delivery of several MusclePharm products,” MusclePharm said in a statement.
According to the statement, Opko Health is an investor in BioZone. Dr. Phillip Frost, chairman and CEO of Opko Health, is a significant shareholder in and adviser to MusclePharm.
MusclePharm’s $2 million investment in BioZone was made in the form of a 10 percent secured convertible note due one year from the date of issuance. The note is convertible into shares of BioZone common stock at 20 centsa share. MusclePharm also received a 10-year warrant to purchase 10 million shares of BioZone’s common stock at an exercise price of 40 cents per share.
Howard Pankratz: 303-954-1939, hpankratz@denverpost.com or twitter.com/howardpankratz
