Are These Small Cap Natural Products Stocks Natural Winners for Investors? CDXC & XXII

Small cap stocks Chromadex Corp (OTCMKTS: CDXC) and 22nd Century Group Inc (OTCBB: XXII) are, one way or the other, focused on natural products and have been getting some extra attention lately. Moreover, one of these stocks have been the subject of a disclosed investor awareness campaign. Keeping that in mind, are these two small cap stocks natural winners for investors? Here is a quick look:

Chromadex Corp (OTCMKTS: CDXC) Goes On an Investor Relations Offense

Small cap Chromadex Corp is an innovative natural products company that discovers, acquires, develops and commercializes proprietary-based ingredient technologies through its unique business model that utilizes its wholly owned synergistic business units, including ingredient technologies, natural product fine chemicals (known as "phytochemicals"), chemistry and analytical testing services, and product regulatory and safety consulting (as Spherix Consulting). On Friday, Chromadex Corp rose 3.41% to $1.82 for a market cap of $190.83 million plus CDXC is up 180% over the past year and up 51.7% over the past five years according to Google Finance.

What's the Catch With Chromadex Corp? According to various disclosures, Chromadex Corp has agreed to pay on promoter a monthly cash fee and 100,000 shares of common stock under Rule 144 for twelve (12) months of RedChip investor awareness services. Last Friday, Chromadex Corp announced that its CEO, Frank Jaksch, will present at "TEN," Noble Financial Capital Markets' Tenth Annual Equity Conference at Club Med in Sandpiper Bay, Florida in Room 2 on Wednesday, January 22, 2014 at 8:30 am EST while a week earlier, he was interviewed by Michal Yorba on Clear Channel Business Talk Radio's "The Traders Network." Otherwise, the most important news dates from early January when Chromadex Corp announced it had entered into a four year ingredient supply and brand licensing agreement valued at approximately $62 million, with 5LINX, one of the largest and fastest-growing direct marketing companies in the world. Under the terms of the agreement, 5LINX must purchase $2.1 million worth of NIAGEN™ in 2014 plus an aggregate of $46 million of NIAGEN™ from 2015 through 2017. A quick look at Chromadex Corp's financials reveals revenues of $2,718k (most recent reported quarter), $2,707k, $2,335k and $3,523k for the past four reported quarters along with net losses of $1,250k (most recent reported quarter), $1,021k, $1,424k and $1,699k. At the end of September, Chromadex Corp had $1,087k in cash and $1,026k in receivables to cover $3,281k in payables, $4,111k in current liabilities and $4,510k in total liabilities. This means the deal with 5LINX could be a game changer to at least help out the top line and close the gap with the bottom line.

22nd Century Group Inc (OTCBB: XXII) Recently Cleaned Up Its Balance Sheet

Small cap 22nd Century Group is a plant biotechnology company whose proprietary technology allows for the levels of nicotine and other nicotinic alkaloids (e.g., nornicotine, anatabine and anabasine) in the tobacco plant to be decreased or increased through genetic engineering and plant breeding. 22nd Century owns or is the exclusive licensee of 114 issued patents in 78 countries plus an additional 36 pending patent applications. On Friday, 22nd Century Group fell 3.48% to $2.22 for a market cap of $110.38 million plus XXII is up 122% over the past year and up 70.8% over the past five years according to Google Finance.

What's the Catch With 22nd Century Group? According to various disclosures, no transactions have occurred to mention 22nd Century Group in various investment newsletters. 22nd Century Group has been quiet since December 16th when they issued a press release to announce that the company's recently concluded warrant exchange was a "huge success greatly exceeding management's expectations." The warrant exchange reduced 22nd Century Group's "derivative warrant liability" by 93% and generated gross proceeds of approximately $3.6 million. The press release stated that as of December 13, 2013, 22nd Century Group had total assets of approximately $12 million, including around $6.2 million in cash and only $700 thousand in current liabilities while the only long-term liability (the "derivative warrant liability") was reduced from $18.6 million to approximately $1.2 million. Otherwise and in early December, 22nd Century Group announced that it had purchased all of the equipment at a cigarette manufacturing facility in Mocksville, North Carolina as up until then, subsidiary Goodrich Tobacco Company had produced all of its products through contract manufacturers. A quick look at 22nd Century Group's income statement reveals revenues of $53k (most recent reported quarter ending Sept 30, 2013), zero, zero and $3k for the past four reported quarters along with net losses of $15,373k (most recent reported quarter), $446k, $2,513k and $4,305k (most recent reported quarter ending Sept 30, 2013). So while 22nd Century Group has taken important steps to clean up its balance sheet, the income statement is still a mess.